Rental history, a crucial factor in deciding whether to accept an applicant, often leaves prospective tenants wondering: "How does rental history get reported, and who sees it?" This guide delves into the process, providing insight into how rental history reports are generated and accessed.
Rental history reports, also known as resident screening or tenant screening reports, are produced by third-party background check agencies when landlords or property management companies request them. These reports are typically utilized during the lease application process to assess a potential tenant's reliability and likelihood of fulfilling their lease obligations.
What Information is Included in Rental History Reports?
Rental history reports encompass several key aspects of a tenant's background, including:
1. Previous addresses and landlord contact information
2. Rental payment history: Late payments, missed payments, or evictions
3. Damages caused to previous rental properties
4. Criminal history, if applicable and allowed by local laws
Rental Payment History
Payment history is one of the most vital factors in rental history reports. Landlords usually expect their tenants to pay rent on time and in full. Consequently, late or missed payments can negatively impact a tenant's chances of securing a new lease.
An exceptional example of how rental payment history influences reporting is the inability to pay rent during the COVID-19 pandemic. While some landlords and property managers have shown leniency, others might report these temporary setbacks, potentially hurting a tenant's chances of rental approval in the future.
Evictions and Damages
Evictions and property damages are red flags for prospective landlords. An eviction indicates that a tenant has breached their lease agreement, suggesting that they may not fulfill commitments to a new landlord. Similarly, damages imply financial risk, as landlords may require compensation to repair or repaint the property.
However, some evictions, like those based on extenuating circumstances (e.g., loss of income due to COVID-19), might not deter landlords from approving an application, especially if the tenant can provide convincing explanations.
Who Accesses Rental History Reports?
Rental history reports are primarily accessed by landlords and property management companies during the tenant screening process. This helps them make informed decisions about potential tenants and minimize risks associated with leasing properties.
Additionally, tenant screening agencies, such as TransUnion's SmartMove and Express Evictions, provide rental history reports. These agencies gather information from various sources, including public records and self-reported data from landlords. Prospective tenants might also access their rental history reports to ensure accuracy and identify any reportable occasions that can be explained during their application.
Online Consumer Disclosure Websites
Some websites, such as\CoreLogic Tenant Plus and RentPrep, compile tenant screening data and provide online consumer disclosure to prospective tenants. These platforms help tenants track their rental history, ensuring that their reports accurately reflect their payment and lease history.
However, it's essential for tenants to verify the authenticity and legality of these websites, as their services might differ from those offered by certified tenant screening agencies.
Tenant Screening Agencies Requirements
Tenant screening agencies must follow specific procedures to maintain the accuracy and fairness of rental history reports. These include:
- Verifying the accuracy of data from public records and landlord self-reported information
- Providing tenants with an opportunity to dispute inaccurate or incomplete information in their reports
- Updating reports promptly after disputed information is resolved
- Complying with the Fair Housing Act and other federal and state laws regarding tenant screening
Understanding how rental history gets reported enables tenants to proactively manage their lease history and make informed decisions during the application process. By providing clear, accurate rental payment history and communicating effectively with landlords, tenants can significantly improve their chances of approval in today's competitive rental market.