I believe the use of consumer credit reports have gone berserk.

I once read a fellow AR member suggest using an agents credit report as a measure of their professionalism. Gone absolutely batty!

But, the bad news is, this horse has already left the barn.

Consumer credit reports are now used for the rate you pay for insurance, entering a cell phone contract with big carriers, employment, qualifications for public office, military promotion, the advertising you get, merged with your records at the Department of Motor Vehicles and all sold to unnamed data aggregaters and advertisers.

It is confusing, that one who wishes to protect their costly real estate would be denied what so many others use for less critical concerns.

Of course it's a violation of the law. But 'law' is the benefit of those who can afford to pursue their 'justice."

It should  be stopped before the 'Darkside' negotiates a deal with OpenDoor and Nexis to provide sellers with a buyer Credzestimate.

Have to disagree. You have to have some idea of their credit baseline & that would be the report & a FICO score. We also have been permission to do so on the form itself with payment of the cost.  I really don't care what other people think as long as I get a correct credit picture for the landlord to make a financial determination. A high fico score or R1's says the person pays on time & can be relied upon for the rent.

I will say that we probably do not follow the correct procedures when we do not take an applicant. A letter saying they have been not accepted should be sent to them with the reasons why. 

How can you stop people from doing it especially those wanting to protect their investment?

You make a lot of good points Ken, and that's why many agents refuse to do rentals. One point I would make is, the potential tenants are being extended credit because we fill in the total yearly amount of the lease. Say rent is $2000.00 monthly, we enter $24,000.00 in the lease agreement, but allow the tenants to pay that in 12 monthly installments of of $2000.00 each. So that could be considered extending credit which would justify checking someones credit report.

I think it's sinful to not have a credit report available to the owner of a rental to make good decisions about a tenant.... it's tough getting rid of a tenant who doesn't pay.... 

Great article Ken Jones . It is a double edge sword.  Annette Lawrence , Palm Harbor, FL 727-420-4041 makes some very valid points.I see your point but a homeowner needs to to measure the credit worthiness if they are going to turnover their investment to a tenant.

That is a very good article Ken.  I encourage all to follow the link to your blog post.  

Can't answer without further [independent] research.

Ken Jones - I do not think so. Everyone wants to find a good tenant, isn't it?

Not at all. We have our tenant prospects deal directly with the reporting agency and the notices and option to chare their information is their choice.

I dont use them but know of many who do, they have a right to screeen their applicants.

I know on my personal rentals I want to know the credit worthiness of the applicants. If they don't agree to provide one, RED FLAGS.

Never thought about that...I will check the answers

 I really don't know Ken ....

Ken,

You engendered a good discussion and everyone has made great contributions.  A

Absolutely not.. 

We've alwats used them, but them are not the determining factor and I believe that's where the line moves away

Ken, there are a couple of new services that have somehow pulled together a lot of information on tenants' histories, especially evictions for non-payment at previous addresses.  As a landlord, I would rather have information on landlord abuse issues.  I've had a couple of people in a basement apartment in my house who have pathetic credit scores but were totally punctual about paying rent and took care of the place. 

Everything I've read on the topic (I've previously worked doing background investigations, specializing in credit reviews) as well as every disclosure when applying for a loan or as a landlord is that "If you deny a person based upon their credit, you must give them a copy of their report and the ability to dispute it."

I have never seen it being stated as illegal.  I have the prospective tenant provide me with their credit reports to review and I let them explain any series of late payments or negative marks.  I've rented to people with crystal clean credit and people with bankruptcies and serious negative marks on their credit.  It is a determining factor, but not the sole factor.

This law does not apply in our great land and I am not familiar with its contents.

Ken Jones A very interesting good question.

Ken Jones I read your post and you make a valid point. Shouldn't a landlord have some form of indicator based on a potential tenant's ability to pay their bills on time?

If you are not an attorney, rendering  a legal opinion, or interpreting the law, is Unauthorized Practice of Law (UPL). Contact an attorney for legal advice.

Ken Jones - Shall we start the list of illegal things that are done every single day ... by individuals, business owners, big corporations and our government officials ... violations or not .. they do whatever the hell they want to do and people are generally powerless against it .... unless they have the big bucks to fight against it ... in which case credit scores will likely not be an issue.  See the dog chasing its tail here.  

Please know that I do understand you point. It is well taken 

Any info. leading to credit or payment history helps.

Pay close attention to the laws and regulations.

I do not at this time

I will read it.

Tentants are stuck between a rock and a hard place!  Their credit isn't good enough for purchasing a home, yet landlords won't rent to them with poor credit either.  I totally understand how this should not be acceptable practice but, the homeowner also needs a means to determine whether a tenant is viable or not.  It's definitely a double-edged sword.

I don't think so, but let me read your post.

Back again, and you make some very valid points.

I can see your point, Ken... then again, landlords need some level of measure. It's a bit like whether or not standardized tests predict true performance levels in college.