Most landlords run a background check because it feels like the responsible thing to do. And it is. But doing it without a clear process, or worse, doing it in the wrong order, can create problems that are far more expensive than a bad tenant ever would have been.
We’ve worked with property owners across West Philadelphia and beyond for 40 years now, and the screening mistakes we see aren’t usually from careless people. They’re from well-meaning owners who got the sequence wrong, used the wrong form, or trusted a number on a screen more than they should have. If you want a fuller picture of how the whole process fits together, our tenant screening guide for rental property owners covers the end-to-end view. But this post gets specific: how to run a background check, what to look at, what to skip, and where the real traps are in this market.
“We’ve worked with property owners across West Philadelphia and beyond for 40 years now, and the screening mistakes we see aren’t usually from careless people.”
In This Guide
The Sequence Matters More Than the Screening Tool
Here’s the mistake we see constantly. An owner gets an inquiry on a unit, feels good about the person, and immediately runs a full background check “just to get ahead of things.” In most cities, that’s harmless. In Philadelphia, it can be a fair housing violation before the conversation even gets started.
Under Philadelphia’s Fair Criminal Record Screening Standards Ordinance, the city restricts when employers can inquire about or consider an applicant’s criminal history during the hiring process—generally prohibiting such inquiries until later stages of the hiring process. If you’re a landlord or property manager, consult current local law and legal counsel to understand any applicable fair-chance requirements. The legally correct order is:
- Accept and review the application
- Screen income and credit
- Make a conditional offer
- Then, and only then, run the criminal history check
Skipping step three and jumping straight to step four exposes you to complaints filed with Philadelphia’s enforcement authorities under applicable fair chance and fair housing rules. Violations of the Philadelphia Fair Chance Housing Ordinance can result in civil penalties; landlords and property managers should consult the ordinance text or a qualified attorney for the current penalty amounts. And “I didn’t know” is not a defense that tends to go well at PCHR.
Using a rental application downloaded from a national landlord site that includes criminal history questions upfront violates Philadelphia’s Fair Chance Housing Ordinance, even if you never actually review the answers. The form itself is the problem. A single complaint can result in civil penalties.
What a Background Check Actually Covers
A full screening report isn’t just one thing. When Dimitra, our Leasing Manager, walks new owners through what we pull through AppFolio, she breaks it into four separate components so nothing gets lumped together or assumed:
- Credit report: Payment history, open balances, collections, bankruptcies. Covers the standard 7-year window under FCRA guidelines.
- Criminal history: Goes back 7 years for most records under Pennsylvania’s alignment with federal FCRA rules. Reviewed only after a conditional offer is made.
- Eviction history: This is its own search. It does not automatically appear in a standard credit pull. If the screening package you select doesn’t include an eviction database search, you will miss it.
- Identity verification: Confirms the applicant is who they say they are. More useful than owners expect.
The AppFolio screening module turns around a full report in roughly 72 hours once the applicant submits their information. Philadelphia law caps rental application fees at $50 or the actual cost of the background and credit check, whichever is less — so landlords may pass screening costs to applicants only up to that lower threshold, keeping the process consistent across applications.
Don’t Over-Index on Credit Score
A 750 credit score means someone is good at paying back debt. It does not mean they’ll be a good tenant.
Credit scores measure borrowing behavior, not rental history. We’ve talked to owners who approved applicants with scores above 720 and still ended up dealing with property damage and missed rent by month four. The score looked great. The rental history, had anyone called the prior landlord, told a different story.
Our baseline for most properties around here is 650. Some owners in West Philly set it as low as 600 depending on the property type and submarket. The number matters, but it’s one data point. Calling the previous landlord directly is the single most predictive thing you can do in the whole screening process, and it’s the step most owners skip.
Income Verification Takes More Than a Pay Stub
The income-to-rent ratio we apply is 3x monthly rent. At New Age’s average rent of $1,200 a month, that means verifying at least $3,600 a month in gross income. Sounds simple. It’s often not.
We worked with an owner who had a single-family in Cedar Park and skipped verifying employment directly with the employer. The applicant had uploaded a pay stub to AppFolio that looked legitimate. It wasn’t. The stub had been doctored. By month three, rent stopped. By the time the unit was recovered, that owner was out roughly $3,600 in unpaid rent plus another $1,200 in court filing and attorney fees.
The fix is one phone call. Call the employer directly, not the number on the pay stub. Find the company’s main number independently and ask HR to confirm employment and income.
A Note on Students and Stipend Income
University City, Spruce Hill, and Powelton Village draw a lot of graduate students and healthcare workers from Penn and CHOP. Income verification for students often requires co-signer screening, which is an entirely separate background check process that owners frequently overlook.
We worked with an owner who assumed a PhD student’s affiliation with Penn was income enough. No co-signer was collected. The student’s stipend ended mid-lease, and with no guarantor on file, the owner had no one to pursue when rent stopped. They wrote off $2,400.
If the primary income source is a stipend, fellowship, or assistantship, collect a co-signer. Then screen the co-signer the same way you’d screen the tenant.
Income verification means confirming the source, the amount, and the stability. A pay stub upload is a starting point, not a finish line.
Philadelphia’s Source of Income Rules Change How You Screen
This one catches owners off guard.
Philadelphia law prohibits landlords from refusing to rent to applicants using Housing Choice Vouchers (Section 8) or other lawful sources of income. That means you cannot reject an application simply because the income comes from a voucher. You still verify the income, confirm the voucher amount, and run the standard credit and rental history checks. The process doesn’t disappear; it just shifts from “can I use this income” to “does this applicant otherwise qualify.”
Owners managing properties across multiple zip codes, say, a townhome in Queen Village at 19147 and a multi-family in Kingsessing at 19143, need to apply the same documented criteria uniformly across every application. A verbal policy isn’t enough. If a PCHR complaint gets filed, what protects you is written criteria that existed before any application was reviewed.
The Eviction History Trap
We see this one trip up owners with multi-family properties more than anything else.
We worked with an owner managing a building in Mantua who approved a tenant based on a 670 credit score. Solid number. But the screening package he selected didn’t include a separate eviction database search. Eight months in, it became clear the tenant had two prior evictions in New Jersey that would have been disqualifying. Removing that tenant took four months and cost roughly $4,800 in legal fees and lost rent.
Eviction history and credit history are not the same search. One does not substitute for the other. Always confirm your screening package includes an eviction database pull. If you’re not sure what your current package covers, that’s worth a conversation with whoever manages your leasing process.
Setting Criteria That Don’t Work Against You
One owner with a townhome in Point Breeze insisted on a 720 minimum credit score for a unit that typically rents in the $1,200 range. That threshold sits well above what the submarket realistically supports. The unit sat vacant for 47 days before the owner agreed to adjust. At $1,200 a month, that’s roughly $1,880 in lost rent, for a standard that didn’t reflect the actual applicant pool.
Setting criteria too high has a cost. Setting them inconsistently has a bigger one.
Research and industry surveys suggest that rental application fraud and misrepresentation are more common than many landlords expect, with a meaningful share of applications containing inaccurate or falsified information. The answer to that isn’t a higher credit cutoff. It’s a documented, consistent process applied the same way to every applicant, every time. Inconsistent application of criteria is one of the fastest ways to face a fair housing complaint, even with no discriminatory intent involved.
Adverse Action Notices and Data Disposal
If you decline an applicant based on screening results, federal FCRA rules require you to send an adverse action notice. It tells the applicant they were declined, what consumer reporting agency provided the report, and how they can dispute inaccuracies.
After sending that notice, be sure to retain the declined applicant’s screening data for a reasonable period and then dispose of it securely in accordance with applicable law—consult your attorney or local regulations for specific retention timeframes. Don’t hold onto it indefinitely. That’s a compliance detail that slips through the cracks for self-managing owners more often than it should.
If you’re searching the Philadelphia landlord-tenant court website or the landlord tenant legal help center for documentation on adverse action requirements, the federal FCRA is the governing document here, not a local ordinance.
We’ve managed over 1,000 properties across the city for owners who don’t want to track all of this themselves. It’s a lot to stay on top of, especially if you own units across multiple zip codes with different tenant demographics.
FAQ
What’s the difference between a background check and a credit check?
A credit check looks at payment history, debt levels, and financial behavior. A background check typically includes criminal history, eviction records, and identity verification. They cover different things and often need to be purchased as separate searches or bundled in a screening package that explicitly includes both.
Can I reject an applicant in Philadelphia based on their criminal history?
Not before making a conditional offer. Under the Philadelphia Fair Chance Housing Ordinance, criminal history can only be reviewed after a conditional offer has been extended. If the record then disqualifies them, you can withdraw the offer, but you must follow the proper sequence or risk a PCHR complaint.
How long does a background check take?
Through AppFolio’s screening module, a full report typically comes back within 72 hours of the applicant submitting their information. Delays usually happen when applicants are slow to complete their portion, not on the processing side.
Do I have to screen Section 8 applicants the same way?
Yes. Philadelphia’s Source of Income Protection law means you cannot reject an applicant solely because they use a Housing Choice Voucher. You still run the same income, credit, and rental history checks. The source of income is not a disqualifying factor on its own.
What should I do if I find something concerning in an eviction or criminal history search?
Document your reasoning in writing before making any decision. Your criteria should already be written down and applied consistently. If the finding triggers a withdrawal of a conditional offer, send an adverse action notice and follow the required data disposal rules in accordance with applicable law.
Is it worth hiring a property manager just for tenant screening?
For many owners, yes. Getting the sequence wrong, using a non-compliant form, or missing an eviction search can cost far more than a management fee covers in a year. If tracking Philadelphia’s local ordinances on top of federal FCRA rules feels like more than you want to manage, we’re open to a conversation about how we handle it.