Tenant Screening Record Requirements

 

Tenant Screening Record Requirements

This work is a derivative of bank vault in current public library by Joenevill, CC-BY-2.0

Tenant Screening Record Requirements

Getting a tenant background screening report to complete a transaction is important.  Equally important, you need to be aware of tenant screening record requirements, especially if you have denied an applicant.

Fair Credit Report Act

The Fair Credit Reporting Act (FCRA) is a federal law that promotes accuracy, fairness and privacy for data used by consumer reporting agencies (CRAs).  The FCRA is designed to protect the privacy of consumer report information and to guarantee that the information supplied by CRAs is as accurate as possible. A tenant screening report is a consumer report and subject to the FCRA.

FCRA and Record Requirements

The FCRA does not impose a specific record retention period relating to adverse actions.  Therefore, if an applicant brings forth a claim relating to an adverse action, your records can help defend your position.  Under the FCRA, an applicant can bring a claim within 5 years of the alleged violation.  The Federal Trade Commission recommends keeping records for at least the statute of limitations period.  Give yourself a margin and keep them for 6 years.

Which Records?

Any document related to the background check should be included.  This list would include:

  • Tenant Screening Application
  • Disclosure and Authorization Form
  • Completed Background Screening Report
  • Adverse Action Notices
  • Communications related to the background screening and dispute

FCRA Code

Below is an excerpt for the relevant section of the FCRA:

Federal Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681p § 618. Jurisdiction of courts; limitation of actions.  An action to enforce any liability created under this title may be brought in any appropriate United States district court, without regard to the amount in controversy, or in any other court of competent jurisdiction, not later than the earlier of (1) 2 years after the date of discovery by the plaintiff of the violation that is the basis for such liability; or (2) 5 years after the date on which the violation that is the basis for such liability occurs.

Conclusion

You don’t need a vault. Of course, it is important to safely store tenant screening records.  You can retain tenant screening documentation as paper or digital records.  Similarly, many CRA’s will store documentation as part of their service. Be prepared and keep your tenant screening records. Whichever method you choose, be aware of tenant screening record requirements and safely store your tenant screening records.

Cliff Lamm

Cliff Lamm

Cliff is the Founder of Applycheck.He has worked in real estate as a licensed broker, builder and investor. He shares his passion for real estate and technology with every client.
Cliff Lamm

Latest posts by Cliff Lamm (see all)

2017-11-14T11:21:46+00:00