What Landlords Need to Know

If landlords use background checks such as credit reports to evaluate rental applications they need to follow the provisions of the Fair Credit Reporting Act (FCRA).   Landlords may use consumer reports to evaluate rental applications as long as they follow the provisions of the FCRA. The FCRA is designed to protect the privacy of consumer report information and to guarantee that the information supplied by consumer reporting agencies (CRAs) is as accurate as possible. The FCRA requires landlords who deny a lease based on information in the applicant’s consumer report to provide the applicant with an “adverse action notice.”  Below are resource links that will help landlords stay compliant with tenant screening laws regarding the proper use of consumer reports along with information on how to create or maintain a compliant tenant screening policy as provided by the Federal Trade Commission (FTC).

Below is a link to the FTC site outlining how landlords should follow the provisions of the FCRA along with some types of consumer reports used in Tenant Screening:

If you are a Landlord, Business or Organization that utilizes Credit Reports to evaluate potential Tenants or Employees the below link will explain your responsibilities under the FCRA and other laws when using, reporting and even disposing of these reports: