Property Manager and Landlords often use credit reports as part of their tenant screening process to determine their applicants credit worthiness. They are able to legally access potential tenants credit reports if they get permission to do so typically through written consent.
Consumer credit protection are estalished by the Fair Credit Reporting Act (FCRA) and enforced by the Federal Trade Commission. Access to credit reports is not available to everyone however the rental industry is still one of the few industries that has that privelege.
One important message I wanted to point out today is to remember to maintain records of these authorization forms. There are times the applicants will dispute that they gave permission for a landlord/property manager to obtain their credit reports and you will need the authorization forms for defense. Each states have their own laws in regards to how long you should maintain records typically it is 4-7 years. Retaining the rental application and authorization for credit report inquiry is important if there is a legal dispute.
Make sure to to store this information in a secure place protecting the person's confidential information and to be compliant with the law. Make sure your storage system has high security measures, including your online data storage that your property management software may provide.
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Kathryn
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