Tenant screening is an important tool in vetting potential tenants. From large scale properties to single-unit rentals, tenant screening provides the information landlords and property managers need to make informed decisions about potential renters.
There are protections for renters in regards to information provided. The Federal Trade Commission is one of several agencies that govern renting and rental properties.
In 2013 the FTC released information about action taken to protect potential tenants.
From an FTC press release dated April 3, 2013:
The Federal Trade Commission has warned the operators of six websites that share information about consumers’ rental histories with landlords that they may be subject to the requirements of the Fair Credit Reporting Act (FCRA).
The letters inform the recipients that if they meet certain criteria, namely collecting information on tenants and their rental history and providing that information to landlords so they can make judgments about renting to those tenants, they are considered credit reporting agencies and are subject to certain legal requirements. http://www.ftc.gov/news-events/press-releases/2013/04/ftc-warns-data-brokers-provide-tenant-rental-histories-they-may
It is incumbent on the third-party tenant screening companies to use information in a clear and lawful manner, and that the information gathered is based on accurate data points. These data points may include full name, social security number, and date of birth.
From the FTC Press Release:
Among the requirements cited in the letter are the companies’ obligation to protect the privacy of tenants whose information they collect, including ensuring that those requesting information about tenants have a legitimate reason to acquire it. The letter reminds the companies of their obligation to ensure that the information they provide is accurate, to give consumers a copy of the information about them on request, and to allow consumers to dispute information they believe is inaccurate. The letters also note that the companies must notify landlords of their requirements if they use the data to deny housing to a tenant, and to notify the sources of their information of the requirement that they provide accurate information. http://www.ftc.gov/news-events/press-releases/2013/04/ftc-warns-data-brokers-provide-tenant-rental-histories-they-may
Adam Almeida, President and CEO of TenantScreeningUSA.com states: “The FCRA provides numerous protections for tenants within the screening process. Just as with pre-employment screening, tenants are afforded protection as to how their information is gathered and used.”
Another way an applicant can protect themselves is to review ones credit information on an annual basis.
From PrivacyRights.org: (https://www.privacyrights.org/top-5-tips-renter-privacy-alert-2013)
Order your credit report before you apply for a rental. A prospective landlord will almost certainly order your credit report when considering your rental application. Before you apply, order your own report to confirm that the information is accurate and up-to-date.
It may be beneficial to run a complete background report prior to having a landlord or property manager run one.
Almeida states: “It would be beneficial to understand what information might be pulled off of a private or public record. Having a third-party background screening company run a typical tenant check would allow an applicant to make corrections if needed.”
In the end there are steps an individual can take to ensure the information used on a rental application is accurate by pre-verifying their own information. Also, it is important that applicants know that the Federal government provides protection in regards to information privacy.
TenantScreeningUSA.com is a third-party tenant screening company that can assist both the applicant and the landlord/property manager with all background screening requirements.
