Employee Background Checks: What's Legal, What's Not

When hiring new employees, it's better to be safe than sorry.

More and more businesses are using background checks during the hiring process to help ensure they aren't bringing someone into the workplace who is dangerous or dishonest. Recent research from the Society for Human Resource Management found that nearly 70 percent of employers conduct criminal background checks on all of their job candidates, while 47 percent conduct credit checks.

Lester Rosen, founder and CEO of Employment Screening Resources, said businesses that don't use background checks when hiring are putting their business at risk. He said when a new employee who hasn't been properly vetted is hired, employers are basically welcoming a stranger into their business.

"That stranger has access to your customers, your cash, your IT, everything," Rosen told Business News Daily. "It would make as much sense to do that as it would to walk down the street and give the keys to the front door of your home to a total stranger."

Employment background checks generally include three main aspects: criminal record checks, employment history and education verification.

When it comes to criminal records, Rosen said employers are looking for convictions of serious crimes that would affect the candidate's ability to do the job. He said just having a criminal record, under new federal laws, isn't enough of a reason to disqualify the candidate from consideration.

"You can't automatically throw away the application from someone with a criminal record just because of their criminal record," Rosen said.

He said the law mandates that employers learn more about the criminal conviction to determine if it would have an impact on the job and in the workplace.

Attorney Mark Briggs of the Arizona-based Briggs Law Group said the new law forces employers to have a clear connection for why someone's criminal record makes them unfit for the job they are applying for.

"For example, having five speeding tickets in the past two years may be a valid reason to not hire a delivery driver, but their misdemeanor vandalism conviction 10 years ago probably is not," Briggs said. "If the employer has inappropriately relied on something like an arrest report to deny an applicant a job, they can be in big trouble."

When it comes to employment and education history, employers are confirming that what the candidate wrote on their application is, in fact, true, said Mike Aitken, vice president of government affairs for the Society for Human Resource Management.

"You contact previous employers to verify the candidate did work there," Aitken said. "You are going to contact the educational institution to ensure they did graduate."

Not only will this help confirm if the candidate has the right skills and background for the job, Aitken said it will also tell an employer if the candidate has a penchant for lying.

"It can be a red flag to the employer if the person is being less than honest," he said.

Other things Rosen said employers can look at in a background check include sex offender status, driving records and Social Security traces, which show past addresses of the candidate and if any aliases were used.

Credit is another area that some employers check during a background screening. Aitken said they are used to get an overall financial picture of the candidate.

"They aren't trying to play gotcha and say 'they fell behind once or twice on their credit card payment or have an outstanding student loan debt,'" Aitken said. "It is to check their overall ability to meet their financial obligations."

Aitken said credit checks should be taken into consideration only in situations where a candidate is applying for a job handling large amounts of money or assets, such as a chief financial officer.

"If you are hiring someone to be an administrative assistant or work in government affairs at a lobbying firm, and they have a little bit of a sketchy credit report, it may not matter whatsoever," he said.
Rosen also stressed that conducting credit checks on candidates not involved with a company's money is risky.

"A credit report generally is only something that should be run in a situation where there is a clear connection between credit information and the nature of the job," Rosen said. "That should be very few jobs."

Briggs said one new area where employers should be very careful is when checking out applicants social media accounts. While they might be able to learn a lot about a person's judgment and character from their Facebook or Twitter accounts, there is some risk to viewing those.

"An employer might learn from a person's Facebook page that they belong to a particular religious group or have a disability that is not visually apparent," he said. "Knowing that information can open up an employer to liability, because they are not allowed to ask about those things in an application or interview for a job, and once you know something, you can be accused of considering that information illegally when making the hiring decision."

The key to a successful background check for employers is ensuring they are following the letter of the law. Rosen said employers who don't conduct background checks properly run a serious risk of being sued by a candidate.

"You have to make sure you dot your i's and cross your t's," because it is heavily legally regulated," he said.

The Fair Credit Reporting Act mandates that employers must get written authorization from job applicants before conducting a background check and once it's completed let the candidate know if anything harmful was found in their search.

"They are required to get the permission of the employee first," Aitken said. "The employer is then required, at the end of (the background check), to share with that employee any information that came up that had an adverse impact on their hiring."

Briggs said not following background check laws can cause employers some serious grief.

"The two biggest negative consequences are being sued by a job applicant or employee, and being investigated and possibly fined by a government agency such as the Equal Employment Opportunity Commission or National Labor Relations Board," Briggs said. "Defending against a government investigation or lawsuit is time-consuming and expensive."

To avoid lawsuits and government investigations, Briggs offers employers several tips:
Use a background check services vendor with a good reputation that provides you with clear, accurate and complete written reports. Many do-it-yourself Internet background search engines produce reports that are filled with duplicate and irrelevant information, which can be worse than having no background check at all. Also, if something with the hiring decision goes awry in the future, you will want to show exactly what information you reviewed and when. Getting a solid written report from a professional background check company is a great way to do that.
Have specific reasons for wanting to know certain information to make a hiring decision, which should be tailored for each type of job, and limit the scope of the background check to only that information. For example, you would want to know if a delivery driver candidate has a lot of speeding tickets, and you would want to confirm whether a person applying for a lawyer job graduated from college and law school, but you should not be checking every job-seeker's driving record or educational background. With the robust databases out there today, you can find out whether a person voted in the last presidential election and what magazines they subscribe to, but do you need that information to make a good hiring decision? Probably not.
Background check reports contain a lot of personal and potentially embarrassing information, so you should keep them in a secure place at your company and limit who can read them. Like most circumstances in life, you should treat others as you would like to be treated. Even if you have no empathy for the job candidates, you should keep background check reports close to the vest because your potential liability increases with each person who reads them.

In the end, Rosen said even though there is some cost associated with conducting background checks, it is a lot cheaper than hiring an employee who steals or hurts somebody.

"Most of the time, most of the people pass the background check," Rosen said. "But if you get someone who has a problem, the employer will be very happy they dodged the bullet and didn't bring someone into the workplace who is dangerous, unfit, dishonest or unqualified."

Originally published on Business News Daily.

Why You Need An FCRA Compliant Business For Employment Background Checks

Understanding the difference between public records sites and FCRA compliant businesses.

Hiring new employees is one of the most important and difficult responsibilities for any business. It is essential to find candidates who can excel in the position, and become reliable, trustworthy team members.

To accomplish this task, most companies send applicants through a multi-layered process. This includes submitting a resume, attending multiple interviews, filling out paperwork and a pre-employment background screening.

What You Need To Know About Pre-Employment Background Screening

Background screenings are among the most decisive factors in the hiring process. They provide a wealth of information that empowers hiring managers to conclude whether or not a candidate will be offered employment.

There are several key guidelines employers must follow when establishing a background screening process. It is crucial for hiring managers to understand the legal requirements they must adhere to when screening any applicant. First and foremost, employers must obtain background reports from an FCRA compliant business. The FCRA, or Fair Credit Reporting Act regulates the collection and usage of consumer information.

Only an FCRA compliant business, also known as a consumer reporting agency, is legally allowed to provide data that helps employers make hiring decisions. Businesses that do not utilize a compliant consumer reporting agency may be subjected to legal action. If an applicant is turned down based on the results of a background screen not conducted by a compliant business, that person has the right to sue their prospective employer.

When screening applicants, many companies turn to public records sites that promise to provide information about “anyone in the United States.” What these companies may not realize is that a public records, or people search website, is not a consumer reporting agency.

The Difference Between A Public Records Provider And A Consumer Reporting Agency

Public records websites provide information that is collected from a variety of sources, such as magazine subscription cards and voter registration forms. Although they can provide valuable information, these sites are not legally obligated to ensure that they have current or accurate data. These sites all post disclaimers stating that they provide information for reference purposes only. They cannot verify that the data is correct. Information provided by these sites may not legally be used to make hiring decisions.

Consumer reporting agencies are legally bound to provide current and accurate information. They provide authoritative and verified data about an individual’s work history, criminal records, drug testing and other relevant details. This information may be used to make hiring decisions.

Another differentiator between public records sites and consumer reporting agencies involves legal compliance with an FCRA regulation. Applicants must agree to a background check, and be informed in writing before a screening begins. If this does not happen, the applicant has the right to take legal action against the company that initiated a background check.

Consumer reporting agencies manage these mandatory steps. Public records sites, however, do not require any sort of notice for background checks. These sites provide basic background information, such as address histories and possible criminal records. They do not, however, confirm that any of this information is current, accurate or even attributed to the right person. Anyone can use a public records site to run a background check on another person.

Applicants do have the right to refuse a background screening. When this happens, the potential employer is likely to ignore that person’s bid for a job. If however, the applicant agrees to the screening, the potential employer must adhere to all rules specified by the FCRA and enforced by the Federal Trade Commission (FTC).

Guidelines For A Pre-Employment Background Screening

Aside from being notified about a screening, applicants must also be told how they can get a copy of their own background report. If a company refuses to hire an individual based on the results of a background check, then they must follow specific guidelines. First the applicant must receive a pre-adverse action disclosure along with a copy of their consumer report and a FTC document called “A Summary of Your Rights Under the Fair Credit Reporting Act.” After the candidate is formally informed of an adverse action (such as being denied a job) against them, they must also receive an adverse action notice.

All of these steps are managed by consumer reporting agencies, such as MacData Background Screening. Companies that choose not to utilize an FCRA compliant business may be subjected to a lawsuit. When the person who files the suit wins, they may also be entitled to request court costs and other legal fees.

State And Industry Regulations

Consumer reporting agencies, unlike public records sites, are also obligated to keep up with all state, federal and industry regulations. Many states have different laws regarding background screening practices for recruitment. Some industries, especially the trucking industry, also have unique guidelines. An FCRA compliant company will be aware of these regulations, and work with their clients to ensure they remain compliant at all times. Public records sites are under no obligation to be aware of or follow the same regulations. Therefore, companies that use public records sites for background screening purposes take the risk and responsibility of not collecting data properly upon themselves.

Before You Start Screening

FCRA compliant businesses provide a very different service than public records websites. Public records sites sell contact information and other basic details about individuals. These sites are not authorized to provide employment screening services.

FCRA compliant businesses may legally provide pre-employment background checks. They are authorized to conduct drug screening tests, provide identity, criminal records and verification reports, and offer related employment screening services.

Before you screen an applicant, make sure you’re dealing with an FCRA compliant consumer reporting agency. Otherwise you may be subjected to lawsuits based on regulations that were created to protect the privacy of individuals and ensure that applicants are not denied employment due to inaccurate or outdated information.

Misconceptions Preventing Small Businesses from utilizing Background Screens for Pre-employment

Experts say that about 80 percent of HR professionals use pre-employment background screening. The background screening market is estimated to be worth between two and three billion dollars. Yet many small businesses are still relying on old-fashioned screening techniques such as asking for and following up with references rather than conducting a professional employment background screen. This approach is unfortunately quite outdated and could be potentially hazardous for a small medium business.

The question is why are so many small businesses not doing pre-employment background screens. Most small businesses are thinking that this will cost them an arm and a leg, and see cost as being a major inhibitor. In reality, however, the notion that expert employment background checks are too costly for small businesses is a misperception. If you are willing to outsource your pre-employment background screening it is actually quite affordable, usually no more than $50 per applicant.

Another misconception small business owners may have is that they don’t have the internal expertise to do background checks. Lack of knowledge surrounding background screening is another reason why many small businesses often fail to run employment background checks. Certainly, there is plenty to learn about screening. It could very well take an in-house employee moths to research how to best run background checks. This is why the outsourcing neatly solves this problem. If you’d rather not pay one of you workers to figure out how to screen applicants, you can simply hire a professional pre-employment background screening company to do it quickly and professionally for you. Many of the experts are such screening companies have spent their entire careers learning the best ways to research candidate’s a backgrounds.

Lastly, many small businesses are asking, “What is the big deal? We've never had a problem with hiring new employees before?” Lack of concern from small businesses is a major factor. Some small business owners see background checks as something that only certain fields must carry out. And indeed, until the last decade or so, health care, law enforcement and education professionals were by and large the only workers that were subjected to employment background screens. Today, however, private companies have plenty of reasons to consistently carry out pre-employment background screens such as hiring dangerous individuals, root our lies on candidate’s applications and avoid any legal snafus. Additionally background screens in the long run can end up cutting costs and actually speed up the hiring process.

As you can see there are many different reasons why a small to medium business owner should arrange extensive employment background checks. Instead of trying to do employee screening internally, the wise small business owner will outsource this specialized work to a third party pre-employment background screening company.

How To Read Your Credit Report

Your credit report contains a wealth of information about your financial actions. If you have credit or loan accounts, those accounts, and how you pay them, are included in your credit report. It’s important to review your credit report at least once a year so you know what your creditors are saying about you.

Understanding your credit report can be confusing, especially if you’re reading it for the first time. Here is a breakdown of the types information contained in your report.
PERSONAL INFORMATION ON YOUR CREDIT REPORT
Personal information including your name, address, and place of employment is used to identify you. Previous addresses and places of employment might also be included.

It’s not uncommon to have variations or misspellings of your name. Most credit reporting agencies leave these variations to maintain the link between your identity and the credit information. Having different variations of your name and old addresses won't hurt your credit score as long as it's actually your information. Make sure personal information is identifying you and not someone else.

CREDIT SUMMARY
The credit summary section of your credit report summarizes information about the different types of accounts you have. This section lists the total number, balance, number current, and number of delinquent accounts. It will include the following account types:

· Real estate accounts, any mortgages that you have
· Revolving accounts, like credit cards and lines of credit
· Installment accounts, like loans
· Other accounts
· Collection accounts
· Your credit summary will also summarize the number of accounts you have open, closed, in public records, and the number of inquiries made against your credit within the past two years.

ACCOUNT HISTORY
The account history section of your credit report contains the bulk of the information. This section includes each of your credit accounts and details about how you've paid. Your account history will be very detailed, but it's important that you read through to make sure the information is being reported correctly.

Each account will contain the several pieces of information.
· Creditor name of the institution reporting the information.
· Account number associated with the account. The account number may be scrambled or shortened for privacy purposes.
· Account Type, i.e. revolving account, education loan, auto loan.
· Responsibility. This indicates whether you have individual, joint, or authorized user responsibility for the account.
· Monthly payment is the minimum amount you are required to pay on the account each month.
· Date opened. The month and year the account was established.
· Date reported is the last date the creditor updated the account information with the credit bureau.
· Balance. The amount owed on the account at the time data was reported.
· Credit limit or loan amount.
· High balance or high credit is the highest amount ever charged on the credit card. For installment loans, high credit is the original loan amount.
· Past due. Amount past due at the time the data was reported.
· Remarks are comments made by the creditor about your account.
· Payment status. Indicates the status of the account, i.e. current, past due, charge-off. Even if your account is current, it might contain information about previous delinquencies.
· Payment history. Indicates your monthly payment status since the time your account was established.
· Collection accounts may appear as part of the account history or in a separate section. Where it appears depends on the company providing your credit report.

PUBLIC RECORDS
Public records include information like bankruptcies, judgments, tax liens, state and country court records, and, in some states, overdue child support. Depending on the type of account, a public record can remain on your credit report between 7-10 years. Only severe financial blunders appear in this section, not criminal arrests or convictions. Because public records can severely damage your credit, it's best to keep this section clear.

CREDIT INQUIRIES
Credit inquiries list all parties who have accessed your credit report within the past two years. While your version of the credit report lists several credit inquiries, not all of these appear on the lenders' and creditors' versions. Only "hard" inquiries are shown to lenders. These are inquiries made when a lender checks your credit report to approve your credit application. Your version will also include "soft" inquiries consisting of inquiries made by lenders for promotional purposes.

Deciphering a Background Check: What to Look For

A background check involves investigating a person's employment, criminal and financial history. Although most employers typically want to cut to the chase and see a job candidate's criminal and driving record, there are some practical limitations to these searches.

Fair Credit Reporting Act

The Fair Credit Reporting Act (FCRA) has been the law of the land in the United States for over four decades.

The FCRA gives employers and HR departments guidelines for navigating background checks, especially as these checks relate to adverse hiring decisions and notifying the job applicant about sensitive aspects of the background check.

How Deep Should a Background Check Be?

That said, the type of job and its attendant responsibilities will usually dictate the scope of the background check that the employer decides on.

In other words, a job at Best Buy will usually require less stringent or deep background checks than a job working with the CIA. Some jobs require a sweeping check of the candidate's credit history, for example, while others do not.

Types of Background Checks

When you go through a third-party background check agency to find out more about a job candidate, you could run into problems with poor record keeping or only a partial collection of the candidate's relevant information.

Background check websites look into the candidate's possible criminal history through courthouse searches, state repositories or nationally aggregated databases. In addition to criminal records, background check services can also provide Driving Records, Employment Verification, Education Verification, Professional References, Drug Testing and more. Most of these background check services have access to many databases that house public information about the individual you want to check out.

What Should You Be Looking For?

Some job applicants can hide things from their potential employers or exaggerate certain aspects of their lives, such as the college they went to.

To keep a handle on all of these applicants, background check agencies conduct as many as 10,000 background checks per day at a cost of around $30 per background check to keep job applicants honest.

Misdemeanor and Felony Charges

Typically a job candidate's possible misdemeanor and felony charges would be something that all employers should inquire about. These records are normally held by the county or state in which the job applicant is from. A full criminal history as part of a background check should be mandatory for most jobs. It’s important however that the employer clearly defines their screen policy. Having a background screening decision matrix that clearly defines acceptable and non-acceptable offenses will help avoid confusion down the road. .

Credit Reports and Bankruptcy Filings

If the position that the employer is considering for a given candidate depends on the employee being especially responsible and good with money, then a background check that includes a full credit history and any bankruptcy filings would be helpful. Many background check agencies only offer this information for a small fee, which might be well worth the cost depending on the position.

Drug Test Results

Approximately a quarter of background checks contracted out to thirty-party background check agencies will conduct a drug test as part of their report.

The drug test is usually carried out in conjunction with a local medical center or clinic. Employers might want to really consider this option.

There are some drawbacks to asking that the background check include a drug test - drug tests can be expensive and might only be relevant for jobs that require operating heavy machinery or complete mental precision.

Driving Record

Any DUI charges or license suspensions would be very relevant information for an employer to take a look at, especially if the job requires operating a vehicle.

What happens on a pre-employment background check?

When you receive a job offer there is often a line in the offer letter that says, "This offer is contingent upon completion of a successful background check." Just what is involved in that? What can you expect to be uncovered?

Many people are concerned that if they leave a short term job off their resume or neglect to mention the job where they were fired, it will show up in a background check. This is unlikely, as it's not like an FBI investigation into your life. Remember that resumes are marketing documents and you're not required to put anything negative on them, but if asked to list all positions, you should, since you can be fired for dishonesty if you don't. But, it's not likely to show up in a background check.

But what can you expect? Attorney Johanna Harris allowed me a sneak peak at her new book Use Protection: An Employee's Guide to Advancement in the Workplace, to explain just what to expect in a background check.

Criminal records. This is usually a first stop for employers. How far back and what crimes employers can consider largely depends on state laws. If you have a criminal record, Harris advises you put together a document that explains exactly what happened and is supported by the evidence. That is, don't just write up your version of events, include court documents. The EEOC has been cracking down on employers that place to much emphasis on criminal backgrounds, so expect employers to be less strict.

Credit checks. This is another area the EEOC is concerned about -- for the same reason as criminal records -- it has a disparate impact on African American job candidates. Not every company uses credit checks and even among those that do, they generally don't check every job candidate's records. But, if they do, what are they looking for? Harris writes: "It is unlikely that an employer would hold a late credit card payment against you." But if it's gone to collection or court, employers may not be willing to overlook it. Student loan defaults, she says, are also something employers look at. However, if your debt is due to medical bills or other emergencies, employers tend to not be as harsh, she says. One thing about credit checks -- you have to authorize them to do so. Best bet? Run your own credit before applying for a job.

Education, certification and licenses. If you lie about that degree -- even if you were only 6 credits short, your potential employer will find about about it. Didn't pay that final library fine at your university? Harris cautions that your school may claim you never received your degree. Clear all those things up before applying for a new job. Most certifications and licences are public records and are easy to verify. Bottom line, Harris says, don't lie about your education or try to hide a disciplinary history. It's easy to find.

References. Many people are under the impression that employers can only confirm dates of service and titles. This is false, false and false! Company policy may prohibit managers from speaking out, but most do anyway. Which means, don't burn bridges and always work hard. Harris also cautions that employers can and do search your "electronic trail." Things like tweets, videos, blogs and anything that hits the internet are easy to find. Clean up your trail (the best you can) before applying.

Military records. Harris states that employers are pretty limited in what they can find out about -- just rank, salary, duties and awards. She reminds that "it is illegal for an employer to deny you a job because you might be called up to active duty."

Bankruptcy. These records are publicly available, but, according to Harris, employers cannot hold a bankruptcy against you.

Driving records. These are also public records and subject to employer discretion. Bottom line? That DUI may prevent you from getting a job.

Medical records. These are off limits in a background check. Employers may ask you if you can perform the duties of a job, and you can answer yes, or no. If you answer yes, they have to take your word for it. There is an exception, though, according to Harris. As long as they require everyone who works in this or a similar job to undergo a medical exam, they can make that a requirement for the job. That is, if you come in limping, they can't require a medical exam unless they require everyone to have a medical exam.

Drug testing. Pre-employment drug testing is legal. Period. If you're taking a prescription for something normally caught in a drug test (like prescription pain killers or medication for ADHD), you will be required to provide proof that it's a legal prescription. This can be as easy as showing your prescription bottle with the proper information attached.

So, if your job offer has the background contingency as part of it, this is what you can expect. If you're going to have any problem with any of these sections, start working now to clean up your record. Even old convictions can be expunged in many cases.

Research more at: http://www.cbsnews.com/news/what-happens-on-a-pre-employment-background-check/

Feds Begin Fingerprinting 'High Risk' Medicare Providers and Suppliers

Four years after Obamacare became law, the Department of Health and Human Services (HHS) is notifying Medicare providers and suppliers of new fingerprint-based background checks. Eventually, all individuals who hold a five percent or greater stake in a Medicare supplier or provider that is categorized as "high risk" will be subject to the requirement. The provision is part of the Medicare, Medicaid, and CHIP Program Integrity Provisions (Title E) of the Affordable Care Act, and gives the HHS secretary broad discretion in applying the background check requirements depending on the potential for abuse, fraud, and/or waste.

The new requirements are spelled out in a document posted online on the website of the Centers for Medicare and Medicaid Services (CMS) last Friday. The new rules will apply to both current and future enrollees who are classified as "high risk," the stated purpose being to weed out "bad actors" in the Medicare program and prevent any more from enrolling.

This particular document is a "News Flash" from CMS's Medicare Learning Network and is addressed to suppliers and providers who submit claims for "Durable Medical Equipment Medicare Administrative Contractors (DME MACs) and Home Health and Hospice (HH&H) MACs for services provided to Medicare beneficiaries." There is no effective date or implementation date listed on the document; rather, the document states that "fingerprint-based background check implementation will be phased in beginning in 2014," and that those affected will receive letters after which the individuals will have thirty days to comply with the finger-printing requirement. The fingerprints will be submitted to the FBI for a background check and will be stored by the government in accordance with federal requirements and FBI guidelines.

Although initially the new regulations will only be applied to providers and suppliers of "Durable Medicare Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) suppliers or Home Health Agencies (HHA)," the "high risk" category is defined at the discretion of the HHS secretary and may be expanded in the future.

Read more at: http://www.weeklystandard.com/blogs/feds-begin-fingerprinting-high-risk-medicare-providers-and-suppliers_786924.html

How to Select the Right Tenant for Your Property

As a landlord, you are essentially giving a stranger the keys to your property. Taking the time to select the right tenant for your property is an important way to protect your investment. Here are some ways to differentiate the good tenants from the ones who could cause you problems down the line.

1. Adhere to the Federal Fair Housing Rules

Your desire to find the right tenant for your property does not make you exempt from adhering to the Federal Fair Housing Act. You must always adhere to this Act to avoid charges of discrimination. In short, you cannot discriminate based on:

Race or color
National origin
Religion
Sex
Familial status (families with children)
Disability

In addition, many states have their own Fair Housing Rules that you must comply with, so make sure you know and adhere to your local laws as well.

2. The Right Tenant Has Good Credit

You want to look for a tenant who is financially responsible. If they are responsible with paying their bills, they will most likely pay their rent on time and be responsible with your apartment.

A. Verify Their Income

Ask for copies of their pay stubs
Call their employer directly to confirm their employment, length of employment, their attendance record and monthly earnings.

-Ideally, their monthly income should be at least three times the monthly rent. 

B. Run a Credit Check

See if they have a history of paying their bills on time.
Check their income/debt ratio.

-Even if their income is three times the monthly rent, you have to factor in how much debt they have.

-For example, the rent is $1000 per month. Tenant A is making $3000 a month, but has $2000 in debt payments every month. They most likely would not be able to afford to rent the apartment. Tenant B makes $2500 a month, but has no debt. They could be an excellent candidate to pay the rent even though their income is not three times the monthly rent.
Look for prior evictions, civil judgments against or bankruptcies.

3. Perform a Criminal Background Check

Criminal information is a matter of public record, and can be viewed at various court houses. This check will turn up both serious and minor offenses. You will need the tenant’s name and date of birth. Keep in mind that those with a criminal record will often try to falsify this information when looking to rent an apartment so make sure to check a valid ID to verify that they are who they say they are.

A thorough criminal check should include:

Federal Court Record Search
A Statewide Criminal Record Search
A County Criminal Court Search
A Department of Corrections Offender Search
Sexual Offender Database Search

3 points of caution:

Certain states, such as California, prohibit landlords from discriminating against renters with certain criminal convictions. As a landlord, you may have an easier time justifying your rejection of a prospective tenant with a drug or violent crime conviction than you would rejecting a tenant with 50 speeding tickets.
There is no nationwide database of criminal records, so it may be hard to uncover the tenant’s full story.
Doing a criminal check yourself can be very time consuming. It may be best to hire a reputable tenant screening company to perform this check for you. It can often be combined with the credit check, for a fee of course.

4. Check Out Their Rental History

You should talk to at least two of their previous landlords. This is because, if the applicant was a problem tenant, the current landlord may not be so forthcoming with the truth as they may just want to get the tenant off of their hands.

Questions you should ask:

Did they pay their rent on time?
What was the reason for the move? Were they evicted for non-payment of rent or for breaking the landlord’s rules?
Did they give 30 days notice prior to moving?
How did they keep their apartment? Were they clean?
Did they cause any damage to the apartment other than normal wear and tear?
Were they respectful of their neighbors?
Did they complain often?

Of course, if the applicant is a first time renter, a student or a recent graduate, they may not have a rental history. In this case, you can require a co-signer for the lease.

5. The Right Tenant Has a Consistent Lifestyle

On their application form, look at their prior addresses and employment history. Do they move or switch jobs often? If they move often, this pattern is likely to continue and they will not be a long term tenant. If they have not shown consistent employment, they may not be able to afford the apartment in three months and you will be left starting your tenant search from scratch or dealing with an eviction.

6. Look for a Maximum of Two People Per Bedroom

Although HUD does not have specific regulations regarding the number of occupants per bedroom, a rule of a maximum of two people per bedroom is considered reasonable under the Fair Housing Act with the following exceptions:

State and local law-
If a state or locale has specific housing codes, then the landlord must adhere to them.
Size and configuration of dwelling -
A 500 square foot bedroom can hold more occupants than a 250 square foot room.
A unit with a living room and den could hold more occupants than one without.
Age and number of children-
Refusing to rent to two adults with an infant for a one bedroom could be considered discriminatory, whereas refusing to rent to two adults with a teenager for a one bedroom would be considered reasonable.
You can give a maximum number of people per apartment, but you cannot give a maximum number of children per apartment.
Limitations of the septic/sewer system-
If capacity of the system limits the number of occupants the dwelling can tolerate.

The more people per apartment, the more noise and the greater the wear and tear on your investment.

Considering all of these factors will help you choose the right tenant for your property and hopefully save you time and money by avoiding costly evictions, non-payment and damage to your property.

Get more information at: http://landlords.about.com/od/Landlord101/a/How-To-Select-The-Right-Tenant-For-Your-Property.htm

NEW SYSTEM FEATURE! - QUICKVIEW

We are excited to announce a new system feature which will streamline your background screening process. As you know, under the Fair Credit Reporting Act, applicants are authorized to receive a copy of any background screening report that is obtained on them. We have made the process of complying with this requirement as easy as 1 - 2 - 3!

1. On the main Report Results screen, you will see a drop down titled "Disclosures and Forms," choose Consumer Copy and then click Email Letter.

2. Enter applicant's email address.

3. An email is sent to the applicant with a secure link using our new QuickView feature. The applicant will need to provide identifying information in order to view the report.

This new feature saves you time and money by cutting down printing and postage expenses and limiting your responsibility of handling the applicant's confidential information. It also creates an audit log to track compliance. All activity (when the email is sent, when it is viewed by the applicant, etc.) is logged in Report Notes. This feature is optimized for use on all tablets, desktops and modern browsers.

If you have any questions about this new feature or any of our services, please do not hesitate to contact us. We're here to help.

10 Fun Facts about Fingerprints

Fun Fact 1: Ridges

Fingerprints are defined as the impressions made by the ridges on the ends of our fingers. Those ridges provide humans with the friction and traction to grasp objects without having them slip between their fingers. It is also believed by many scientists that those ridges enhance our sense of touch.

Fun Fact 2: Patterns and Classification

Scientists have known about fingerprints since the 19th century. As early as 1892, English scientist Sir Francis Galton wrote a book about using fingerprints to solve crimes. It was not until 1896, however, that Sir Edward Richard Henry would develop a way to classify fingerprints based upon their general ridge patterns: loops, whorls and arches.

Fun Fact 3: Uniqueness

Fingerprints are unique to each individual. That means that no one else in the world has the exact same set of fingerprints. No two fingerprints have ever been found identical in many billions of human and automated computer comparisons.

Fun Fact 4: Formation

The human fetus will begin to acquire fingerprints three months into gestation. They form from pressure on a baby's tiny, developing fingers in the womb. It is the slight difference in the womb environment that causes identical twins to be born with similar, but not identical, fingerprints. Fingerprints will never change from the time of birth until death. Their uniqueness and lasting quality make fingerprints one of the best ways to identify a person.

Fun Fact 5: Residue

Natural oils in the skin that are produced by the skin’s sebaceous glands combined with the salts produced from our sweat glands form a residue which is left on objects forming a latent fingerprint.

Fun Fact 6: Dactyloscopy

Although it has been modified slightly over time, the system of fingerprint identification, called Dactyloscopy, is still used by law enforcement agencies all over the world. The name is of Greek origin, stemming from the Greek work 'daktylos' meaning “finger” and 'skopein' meaning “to examine.”

Fun Fact 7: Fingerprints First Used As Identification

Fingerprints weren't used as a method for identifying criminals until the 19th century. In 1858, an Englishman named Sir William Herschel was working as the Chief Magistrate in Jungipoor, India. In order to reduce fraud, he had the residents record their fingerprints when signing business documents.

Fun Fact 8: First Fingerprint Used In A Criminal Case

In 1892, Juan Vucetich, a police officer in Buenos Aires, Argentina, was called in to assist with the investigation of two boys murdered in a small village near Buenos Aires. Suspicion had fallen initially on a man named Velasquez, a love interest of the boys' mother, Francisca Rojas. But when Vucetich compared fingerprints found at the murder scene to those of both Velasquez and Rojas, they matched Rojas' exactly. She confessed to the crime. This was the first time fingerprints had been used in a criminal investigation.

Fun Fact 9: J. Edgar Hoover

John Edgar Hoover was the director of the FBI for almost 48 years, and from 1924 until the time of his death in 1972, he was responsible for establishing one of the best forensic laboratories in the world, as well as a national fingerprint registry. The FBI’s fingerprint database is the largest in the world.

Fun Fact 10: Animal Kingdom

Humans are not the only ones with fingerprints! Some primates, including gorillas and chimpanzees, and koala bears have their own unique prints.

Gorillas have hands that are quite similar to human hands. They have five fingers (including an opposable thumb), and five toes (including an opposable big toe). Gorillas can grasp things with both their hands and their feet. They are capable of grasping these objects because they have ridges on their feet and hands that help them grip things. These ridges are formed in unique patterns and cause gorillas to have fingerprints of their own.

The koala has fingerprints that are so similar to the human fingerprint that it is almost impossible to tell them apart because of the pattern, shape and size of the ridges. Under the microscope, the ridges look exactly the same. The width of the ridge, the shape, general size and pattern is the same. The main difference is that the entire human palm and fingers are covered with ridges while the koala only has ridges on its fingertips and some parts of the palm.

Common Myths and Misconceptions with Conducting a Background Screen

Conducting a background screen can sometimes be a quite formidable and intimidating process. There are many myths and misconceptions that surround the background screening process. However, employers and job seekers can relax and rest assured that the many misconceptions and myths are just that. Here are some of the most common myths and misconceptions of a background screen.

Myth #1: All background screening companies provide the same information, so the cheapest cost is the best

It is very common to think that every background screening company is the same and that the one that costs the least is the best. This is false there is multiple different databases that populate criminal information and instant background checks are non-existent. FCRA has guidelines in place that all consumer reporting agencies must follow, meaning that every company should be up to the same standard but not every company follows these guidelines. If something seems too good to be true then it most likely is. Choosing a background screen company just because of its price can put employers at risk for overall inaccurate and faulty results, bad hires and even the possibility of legal action meaning a lawsuit!

Myth #2: Every background check is the same

A background check can include a multitude of different things such as criminal checks, credit scores, credential checks and previous employment verification. Most background screens will be determined by the type of job they are required for. Choose a background screening company that meets your specific and individualized staffing needs. Choosing a background screening company that can meet your needs and screen for the factors that are important to your particular company and the job description can insure that you’re a hiring the most elite candidates while reducing costly turnovers.

Myth #3. Applicants can’t dispute findings

Every so often especially with more common names such as “John Smith”, records will show up and be reported for the wrong person. Legally, candidates are allowed to obtain a copy of their report and are also able to dispute any of the findings. Findings includes all verifications that are provided by the background screening company such as criminal, MVR, education and employment.

Myth #4. All the information you need is online

This is false because many of the searches that are done online are through databases that can be out of date of incomplete. There are many factors that can make a background search online be inadequate such as maiden names of date of birth. A reliable background screen is always verified professionally.

Myth #5. Only large companies need to screen candidates

Whether it is a large or small company all can be benefited from background screening potential employees. Background screening is built to help an employer make a more informed and skilled hire. It is much better to invest initially with a small fee for a background screen then it is to pay later on down the road potentially risking thousands of dollars worth of damages and months of invaluable time.