To run a credit report on a tenant, you must first get the applicant’s written permission.
You’ve found the perfect rental applicant—steady job, good references, friendly demeanor. The only thing left is pulling their credit report. It feels like a straightforward step, but many landlords don’t realize that running the report without explicit written consent can land them in legal trouble under federal law.
The Fair Credit Reporting Act (FCRA) sets clear rules on how and when you can access a tenant’s credit history. This guide walks you through the legal steps, what data you’ll see, and what to do if you decide to deny the application based on the report.
Step 1: Get Written Consent First
Before you run any credit or background check, you must receive the tenant’s written authorization. The FCRA is explicit on this point—a consumer reporting agency cannot release a report without the consumer’s permission when that report is used for screening purposes.
Most tenant screening services provide a consent form built into the application process. If you’re handling it manually, have the applicant sign a separate document that clearly states you will obtain their credit report and possibly a background check. Keep the signed form on file.
What the consent form should include
The authorization should be explicit and separate from the general rental application. It needs to name the type of report you’re requesting (credit history, rental history, criminal background) and confirm that the applicant understands the report may affect your decision. The FTC recommends you also state that you may take adverse action based on the report.
Why Landlords Sometimes Skip This Step
It’s tempting to think a quick online search or a verbal OK is enough. Some landlords assume that because the tenant provided their Social Security number on the application, that counts as implied consent. Under the FCRA, it does not. The most common reason landlords skip formal consent is to speed up the process, but the legal risk isn’t worth the time saved.
- Legal requirement: The FCRA mandates written consent before accessing a consumer report for screening. Without it, you’re violating federal law.
- Adverse action notice: If you later deny the tenant and they discover a report was pulled without permission, you open yourself to a lawsuit or regulatory penalties.
- State laws add extra layers: Some states, like California, require you to return any unused portion of the screening fee if you don’t obtain a credit report or do a reference check.
- Fair housing implications: Running a credit report without a consistent, written policy could lead to claims of discrimination if you treat applicants differently.
- Consumer trust: Tenants who see a clear consent process are more likely to feel the screening is fair and transparent.
The lesson is simple: treat written consent as a non-negotiable first step, not an optional formality. It protects both you and the applicant.
What a Tenant Credit Report Actually Shows
After you have consent, you can order the report through a credit bureau or a dedicated tenant screening service. The report typically includes a credit score, payment history, public records like bankruptcies or evictions, and sometimes rental history. Different agencies may present the data differently, but the core information is similar. The FTC’s notice to users outlines what screening companies must provide landlords, including a summary of your responsibilities under the FCRA.
| Data Point | What It Shows | Why Landlords Care |
|---|---|---|
| Credit score | Three-digit number (300–850) based on credit history | Quick snapshot of financial responsibility |
| Payment history | Record of on-time vs. late payments on loans, cards, etc. | Shows if applicant pays bills on time |
| Public records | Bankruptcies, tax liens, civil judgments, evictions | Flags past financial or legal problems |
| Rental history | Previous addresses and, in some reports, rent payment data | Direct evidence of previous tenant behavior |
| Inquiries | List of entities that recently pulled the credit report | Many recent inquiries may signal financial distress |
Note that the report does not tell you everything. It won’t show your applicant’s current income or employment stability—you still need pay stubs or tax returns for that. Use the credit report as one piece of a broader screening puzzle.
What to Do After You View the Report
Once you have the report, compare it against your tenant screening criteria. If the applicant meets your standards, you proceed with the lease. If you decide to deny the application—or take any other adverse action like charging a higher deposit—the FCRA requires you to follow a specific process.
- Compare against clear, objective criteria. Use consistent standards like a minimum credit score (e.g., 620), income at least 3x rent, and no evictions in the past 7 years.
- Issue an adverse action notice. This notice must include the name, address, and phone number of the consumer reporting agency that supplied the report, along with a statement that the agency did not make the decision and can’t explain it.
- Give the applicant a chance to respond. You must notify them before finalizing the denial? Actually, the adverse action notice is typically given after the decision. The FCRA requires you to give them a copy of the report and a summary of their rights.
- Document everything. Keep the written consent, the report (or a record of it), and the adverse action notice on file for at least a year to show compliance if challenged.
Following these steps reduces your legal exposure and shows the applicant that you handled their information responsibly.
Legal Responsibilities Every Landlord Should Know
The FCRA isn’t the only law that applies. You also need to be aware of fair housing laws, which prohibit discrimination based on race, color, religion, sex, national origin, familial status, or disability. Using credit history in a way that disproportionately excludes a protected class could trigger a fair housing complaint. The CFPB’s employer consent requirement summary clarifies that written consent is required before a consumer reporting agency releases information to an employer; the same principle applies for landlords.
| Landlord Responsibility | Applicant Right |
|---|---|
| Obtain written consent before running the report | Refuse consent without penalty (though landlord may choose not to rent) |
| Provide an adverse action notice if denying based on the report | Receive contact info of the reporting agency and a free copy of the report if requested within 60 days |
| Use the report only for the rental decision | Know the report was used fairly and not shared with unauthorized parties |
| Follow state-specific laws (e.g., California’s screening fee rules) | Get any unused screening fee refunded if the landlord doesn’t complete the checks |
Staying compliant doesn’t have to be complicated. Focus on getting consent in writing, having clear criteria, and delivering the right notices when you say no.
The Bottom Line
Running a credit report on a tenant is a straightforward process when you follow the FCRA’s rules. Start with written permission, order the report through a reputable service, and use consistent criteria to evaluate it. If you deny the applicant, send an adverse action notice with the agency’s contact details. Skipping any of these steps risks legal trouble and damages trust with applicants.
A real estate attorney or local landlord association can help you draft a compliant consent form and screening policy that fits your state’s specific laws—whether you’re in California with its screening fee rules, or in a state with stricter tenant protections.
References & Sources
- FTC. “What Tenant Background Screening Companies Need Know About Fair Credit Reporting Act” The FCRA requires tenant screening companies to provide their landlord clients with a “Notice to Users of Consumer Reports” that outlines the landlord’s responsibilities.
- Consumerfinance. “Cfpb Summary Your Rights Under Fcra” The FCRA specifies that a consumer reporting agency may not give out information about a consumer to an employer or potential employer without the consumer’s written consent given.