What's the best way for landlords to screen tenants?
What's the best way for landlords to screen tenants?
Savvy landlords should ask all prospective tenants to fill out a written rental application that includes the following information:
- employment, income, and credit history
- Social Security and driver's license numbers
- past evictions or bankruptcies, and
- references.
Before choosing tenants, landlords should check with previous landlords and other references; verify income, employment, and bank account information; and obtain a credit report. The credit report is especially important because it will indicate whether a particular person has a history of paying rent or bills late, has gone through bankruptcy, has been convicted of a crime, or has ever been evicted.
For more information, download Nolo's eFormKit Landlords: How to Screen & Choose Excellent Tenants, by attorney Janet Portman, Marcia Stewart, and attorney Ralph Warner (Nolo).
Are landlords or property managers allowed to pull a prospective tenant's credit report?
Yes, you are allowed to obtain a credit report on a prospective tenant. However, if you turn down an applicant because of negative information on a credit report, you are required to inform the applicant of three things:
- the reason you rejected the applicant
- the name and address of the agency that reported the negative information, and
- the applicant's right to obtain a free copy of the report by requesting it from that agency within 60 days.
To run a credit check, you'll need a prospective tenant's name, address, and Social Security number. You can order a credit report from one of the three major national credit bureaus:
Equifax: www.equifax.com
Experian: www.experian.com
TransUnion: www.transunion.com
What types of discrimination are illegal when choosing a tenant?
Fair housing laws specify clearly illegal reasons to refuse to rent to a tenant, such as rejecting an applicant because of her race, religion, ethnic background, sex, or because she has children or a disability.
In addition, some state and local laws prohibit discrimination based on a person's marital status, sexual orientation, or age.
Landlords are legally free to choose among prospective tenants as long as their decisions comply with these laws and are based on legitimate business criteria. For example, a landlord is entitled to reject someone with a poor credit history, insufficient income to pay the rent, or past behavior -- such as damaging property -- that makes the person a bad risk. A valid occupancy policy limiting the number of people per rental unit -- one that is clearly tied to health and safety -- can also be a legal basis for refusing tenants.
Landlords must apply selection standards, such as requiring a minimum income and a good credit report, equally to all tenants.
Copyright 2005 Nolo
DISCLAIMER: This site and any information contained herein is intended for informational purposes only and should not be construed as legal advice. Seek competent legal counsel for advice on any legal matter.
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