Have the Potential Tenant Fill Out an Application Form
In order to run a credit check on a tenant, the application form should, at a minimum include:
- Their full name
- Addresses for the last two years
- Social Security number
- Date of birth
- Current Employer
- Current Landlord
You Must Have Written Permission to Perform a Credit Check on a Tenant
Adhering to the guidelines set forth by the Fair Credit Reporting Act, you must first get a potential tenant’s written permission in order to access their credit report. Make sure they sign and date a document that states they agree to the credit check. Many landlords include this clause at the bottom of the Application Form. If your Application Form does not explicitly grant you permission to run a credit check on a tenant, you need to get a separate document signed by the tenant, agreeing to the credit check.
An example:
'Applicant gives consent and authorizes the Landlord and all of Landlord’s representation to make any and all inquiries necessary to verify the information provided herein. This information includes, but is not limited to, direct contact with the Applicant’s current and previous landlords, employers, credit holders, credit references, financial institutions, neighbors, police departments…..'*
*It is best to consult legal counsel to determine the appropriate wording.
