Denver Real Estate Blog

Tenant screening in the electronic age

With the evolving use of the Internet to retrieve variety of information, landlords can find out a host of personal data. By using one or more screening services available to most Landlords through various apartment owner associations.

Choices today range from, the basic “just credit” to a complete data search designed to uncover past evictions, criminal convictions or court actions job status and even social security number abuse.

Landlords usually obtain, a basic credit and eviction report by calling their member-reporting agency. Before the information is shared; a password and confirmation of proper use is required. Within 10 minutes, a Faxed copy of the report is usually in the hands of the requesting party.

Traditionally, “just credit” and evictions were the most common searches that landlords utilized. A standard credit report includes ‘listing of all open and closed credit lines, including credit cards, loans and incurred debt. Accounts are listed as “open,” “close’ or “inactive.” IF the account was closed at the tender’s request, a notation is included.

Inquiries by other Interested parties are also listed on the report. Seeking multiple rentals at once can also be found at a glance.

The “profile summary” can reveal at a glance key credit items: Evictions, past due amounts, current and past delinquent accounts and total, monies owed by the applicant are listed. When landlords decide to use a more advanced tenant screening service, they are likely to get information ranging from character references, reputation, community standing, involvement in civil cases and criminal convictions.

Because this is sensitive information – and to give applicants a chance to opt out of the application process landlords, must notify applicant’s of their Intent to order such screening. Notification details and rules are detailed In the Fair Credit Reporting Act, which is available online through the Federal Trade Commission • (www.ftc.gov)
Most screening services require the landlord to sign a “user agreement” before granting credit check privileges. As required by the federal Fair Credit Reporting Act, the user agrees to a multitude of promises, including how to respond to a rejected applicant based on credit or eviction information, if rejected due to a basic credit run, the law requires, in
part, that the applicant advised in writing.

1) That the rejection was based, in whole or in part, on the information contained in the credit report
2) That the applicant may obtain a free copy of the report from the agencies identified in the notice within 60 days of the rejection, and the applicant can dispute the accuracy of the Information by contacting the credit reporting agencies, which are to be provided to the consumer as well.

Rejections based on the more advanced type of screening are more complicated, and are detailed in the fair Credit Reporting Act. The Landlord also agrees to comply with all provisions of the fair credit reporting act. and notes that a possible fine of $5,000 or up to two years in prison (or both) can be imposed if the user obtains the report under false pretenses. Credit reports can only be used for legitimate business purposes.

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Resource

A Colorado Rental Property Resource for both landlords and tenants can be found at http://www.coloradorentalproperty.net . Online land lords can post detailed information regarding their rental property, including 5 color photos. The ad can be self directed by the landlord to their cell phone or property management company. This is a service provided FREE by RealEstateColorado.Net and the ad will remain on line until it is asked to be removed.

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Jeffery McClintock, is a real estate broker in Denver and prides himself on providing clients with professional guidance in all phases of residential new construction, including market research, product development, consulting, marketing and advertising. His personal mission is to bring to you a level of knowledge, experience, commitment, high standards and results to answer your real estate needs. He believes, the most effective way to provide superior service is to build a strong working relationship with you. His system includes regular consultations and feedback, which is the best tool for identifying and clarifying your real estate objectives and help define strategic solutions.