Topic: Renter screening. Using a consumer report.

Every property owner will agree screening a applicant is the best way to prevent having to deal with the expense and stress brought on by a bad renter. The question is: how to get the best report? Contacting a consumer reporting agency (CRA) that is Fair Credit Reporting Act (FCRA)compliant is a good place to start. You see,the FCRA is the main law for consumers (applicants)that protects their rights and list the responsibilities of companies who collect the information, and those who use the information collected like property owners and managers. (The FCRA was passed in 1970, has been strengthened by amendments since and is governed by the Federal Federal Commission. see www.ftc.gov)

In addition to credit, other searches should be done to determine the applicants ability to rent from you such as:
* Name, date of birth, and SSN verified. This is perhaps the most important and is not
always done.
* Nationwide criminal background check including a check of NTAS terrorist watch list.
* Nationwide sexual predator, offender, and pedophile screening.
* Personalize check of county and circuit court records in every county the applicant has
lived for the past 5 years at least.
* Employment verified
* Prior landlords contacted.
* Up to date credit standing.

All results should be verified ( by hand if necessary) to determine the accuracy before being turned over to the property manager or owner. The FCRA does not stop with the report, it clearly states the rights of the applicant should his/her application be denied all or in part on the results of the consumer report in a letter of adverse action.

When searching for a CRA, ask if they provide the required release and consent forms needed to conduct a screening and a letter of adverse action should it be needed, do they use FCRA compliant databases to conduct the background screening and how the results are verified. Don't settle on one until all your questions are answered to your satisfaction.