How to Screen and Select Tenants FAQ

Questions:

• What's the best way for landlords to screen tenants?
• Are landlords or property managers allowed to pull a prospective tenant's credit report?
• Are landlords required to use written rental applications?
• What types of discrimination are illegal when choosing a tenant?
• What kinds of subtle actions might be illegal discrimination by the landlord?
• Can I refuse to rent to someone who doesn’t have a Social Security number?
• Can I refuse to rent to tenants who are not in the U.S. legally?

Answer:

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. If you turn down an applicant because of negative information on a credit report, you must send the applicant an "adverse action" letter, which informs 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 or Individual Taxpayer Identification Number (ITIN). You can order a credit report from a credit reporting agency, which will get the report from one of the three major national credit bureaus:

Equifax: www.equifax.com

Experian: www.experian.com

TransUnion: www.transunion.com

To find a credit reporting agency that operates in your area, look in the Yellow Pages or type "credit reporting agency" in your browser's search box.