The Equal Credit Opportunity Act prohibits discrimination in the lending process
and applies for all lease applications. Property Managers need to know and implement
the Act into all of their tenant selection activities. Property Managers need to conduct
themselves in a consistent and systematic manner . The Property Manager should use
the same Lease Application for every applicant. Additionally if the Property Manager
requires a Credit Report from one applicant, they must require them for all applicants .
The same can be said about Criminal Background Checks . A Property Manager will use
the following when evaluating potential tenants :
1. Credit References & Credit Report
2. Criminal Backround Check
3. A Search of the Public Record
4. Information on previous Landlords
5. Employment History and Income information
6. Possible Application Fee
7. Monthly Rent and Security Deposit required
8. Monthly utilities to be paid by tenant
9. Consistent Qualify Ratios ( % of gross income)
Finally a Property Manager must also disclose who they Represent and advise the consumer
of Mandatory State Disclosures.
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