The Fair Credit Reporting Act (15 U.S.C. §§ 1681-1681x) is a federal law that you need to follow as a property manager if you are performing credit checks. If you are using a prospective tenant’s credit report to evaluate whether they are suitable for the property, the first thing you must do is get their permission to run the report. Generally, this is done in the application.  

If you take adverse action against the tenant based on the report you must give the tenant notice of this in writing. The notice must include at least: 

1. the name, address, and phone number of the agency that supplied the report; 
2. a statement that the agency that provided the report did not take the action against them and can’t give specific reasons for that action; 
3. a notice of the prospective tenant’s right to dispute the accurate or completeness of any information in the report; 
4. and a statement that the tenant can get a free report from the agency if they ask for it within 60 days.  

Once you are finished with the report, adverse decision or not, you must dispose of it. Permanently delete it from your computer, burn it, shred it, etc. Dispose of it permanently; however that is. But do remember your record retention requirements before you shred it, three years for a real estate licensee.  

What if the landlord asks for the report? You need to advise the landlord that if they want a copy of the report then they are also bound to the FCRA. They have to make sure the information is stored safely and they need to also dispose of it properly. Failure by the landlord to do so will create a liability under the law. Please, let your landlord know that if they want to have a copy of the report that they need to follow the law.