Why Background Checks Are Essential for Portland Landlords

Being a landlord isn’t easy—but it’s infinitely harder if you’re constantly dealing with unreliable and irresponsible tenants. Missed rent, property damage, and neighborhood disruptions can all wreak havoc on your income and peace of mind in cases when your tenants turn out to be less than ideal. That’s where background checks come in.

A thorough screening process helps landlords avoid costly evictions, unpaid rent, property damage, and tenant conflict. The key is that you must also stay compliant with local and state laws that govern what information you can consider, how they collect it, and when they’re allowed to deny a rental application. Portland has its own specific requirements for the screening process, so you’ll want to pay close attention to those. So, without further ado, here’s our guide to completing thorough, legal background checks to make sure your tenants will be a good fit.

What Does a Tenant Background Check Include?

Comprehensive background checks typically includes the following:

• Credit Report: Offers a snapshot of the applicant’s financial responsibility, debt-to-income ratio, and payment history.
• Rental History: Verifies past addresses, landlord references, evictions, and patterns of late rent payments or lease violations.
• Criminal History: Highlights convictions that may pose a risk to other tenants, neighbors, or your property.
• Employment Verification: Confirms income stability and ability to afford rent.
• Identity Verification: Ensures the applicant is who they claim to be, reducing the risk of fraud.

While all of these are helpful, Portland landlords must carefully consider how they use this information under local fair housing regulations.

Oregon and Portland Laws on Tenant Screening

Oregon and the City of Portland have strict laws that govern tenant screening practices. Here are a few key rules to be aware of:

1. Portland FAIR Ordinance

Portland’s Fair Access in Renting (FAIR) Ordinance applies to most landlords and restricts how and when they can screen tenants:

• First-Come, First-Served Applications: Landlords must advertise the date and time they’ll begin accepting applications and review them in the order received.
• Criminal History Limitations: Only certain types of convictions (e.g., within the past seven years) can be considered, and landlords must provide a clear, objective rental criteria list.
• Credit Scores: While landlords can use credit reports, they cannot set arbitrary minimum score cutoffs unless justified by objective criteria. They must also consider mitigating circumstances and allow applicants to respond to screening results.
• Security Deposits: Must be based on risk, and landlords are encouraged to allow co-signers or higher deposits if an applicant is on the borderline of acceptance.

2. Oregon State Laws

Oregon law also regulates screening fees, notices, and denials:

• Landlords may charge a screening fee but must provide a written explanation of what the fee covers.
• If denying an applicant based on screening results, landlords must provide a written adverse action notice under the Fair Credit Reporting Act (FCRA).
• Oregon law bans discrimination based on source of income (such as housing vouchers), so screenings must be neutral in that regard.

3. Limitations on criminal history

As of January 1, 2022, Oregon’s SB 291 introduced major updates to tenant screening practices under the Oregon Residential Landlord/Tenant Act (ORLTA). Designed to improve fairness for applicants, especially in Portland, the law places new limits on what landlords can consider during screening and requires greater transparency.

Landlords must now ensure screening fees reflect actual costs and provide written, detailed screening criteria—disclosing appeal rights and non-discrimination policies. Criminal history can only be used in specific cases, and landlords must consider factors like the nature and timing of incidents. Additionally, landlords must give written denial notices within 14 days, listing reasons and applicant rights.

Why Background Checks Matter

So why go through the trouble of running a background check—especially when Portland adds extra layers of regulation? Here’s what’s at stake:

1. Protecting Your Property

Unscreened tenants can cause major damage to units, costing thousands in repairs or lost rent. A good background check can uncover red flags like past evictions, consistent late payments, or unresolved landlord disputes.

2. Ensuring Community Safety

If you own a multi-family property or a rental in a shared neighborhood, your tenants aren’t living in a vacuum. A criminal background check can help you avoid renting to individuals with histories of violence, property crimes, or drug-related activity that could endanger others.

3. Reducing Eviction Risk

Evictions in Portland are expensive and time-consuming, not to mention emotionally draining. Screening for stable income, a solid rental history, and financial responsibility helps minimize the risk of tenants who won’t pay or follow the lease.

4. Peace of Mind for You and Your Tenants

Well-screened tenants tend to stay longer, respect your property, and help foster a safe, cooperative environment. This leads to lower turnover, fewer complaints, and a better experience for everyone involved.

Tips for Attracting Ideal Tenants in Portland

Of course, background checks are just one part of a successful tenant placement strategy. The best way to avoid problem tenants is to attract good ones in the first place.

Here are a few tips:

• Create Clear, Honest Listings: Include photos, expectations (like pet policies), and rent terms. Transparency builds trust.
• Set Fair and Consistent Criteria: List your screening standards upfront (income-to-rent ratio, credit requirements, etc.) and apply them uniformly.
• Offer Flexibility when Possible: Portland encourages landlords to work with applicants with borderline credit or limited rental history. Options like co-signers or higher security deposits can widen your pool without compromising quality.
• Respond Quickly: Top-tier tenants don’t stay on the market long. Quick, professional responses to inquiries show you’re a responsible landlord.
• Maintain Your Property: Well-maintained rentals attract tenants who care about where they live—and are more likely to treat the home with respect.

How Rent Portland Homes Darla Andrew’s Office Can Help

Staying compliant with Portland’s evolving rental laws can be a challenge, especially when balancing tenant rights with protecting your investment. That’s where we come in. At Rent Portland Homes Darla Andrew’s Office, we specialize in full-service property management that keeps your rentals profitable and stress-free. Our team handles:

• Legal, FAIR-compliant tenant screening.
• Rental listings that attract responsible renters.
• Lease agreements tailored to Oregon laws.
• Conflict resolution, rent collection, and maintenance.
• Regular property inspections and tenant support.

With years of local experience, we know the Portland rental market inside and out—and we’re committed to helping landlords succeed while fostering fair and equitable housing. Call or text us any time at (503) 515-3170 or fill out the contact form on our website.