You spoke to your perspective tenant, reviewed the application the tenant filled out and liked what you saw so far, so you ordered a tenant screening report. BOOM! Based on the report you pulled you need to deny the Tenant. Now what?  

Well a tenant denial is okay – so long as it is for legitimate reasons such as (a) credit history (b) criminal history (c) rental history or (d) income history and as long as your decision doesn’t violate the Fair Housing Laws,  the Fair Credit Reporting Act, or  local government and tenant protections.

Here is what you need to keep in mind. If you are going to deny a tenant based on something learned from the applicant’s consumer report or credit report – those reports you order from a tenant screening company containing information from a Credit bureau like TransUnion or Equifax, then you must send an Adverse Action Letter- aka a Tenant Denial Letter.

When you send the Tenant Denial letter, it is good practice to provide the perspective tenant with a free copy of the full Consumer & Credit Report, and provide the “Summary of Your Rights” document under the Fair Credit Reporting Act. Click on to   for a copy of these rights.  Note: If you do provide an applicant with a copy of their report then you must provide an applicant with a copy of the “Summary of Your Rights” document.

Stay posted for more tips on how and when to provide the tenant denial letter……….


When it comes to managing your single, multi-family or commercial properties, rest easy – Octazon Management has got you covered. Our full-service property management company can handle everything from maintenance and landscaping, to screening potential residents, preparing leases, handling code violations, insurance claims & tax appeals, marketing, advertising and managing your properties online with our advanced technology that allows us to stay connected and maintain transparency with our clients.

With Octazon, we bring order to residential property ownership.

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Posted by: marvinkatz on July 16, 2013