Collections and Property Management Challenges

[Jasmeial Jackson]

I ended my contact with my past property manager and I need to get information from them to file for collection for a past tenant. For some reason, they will not release the original application, driver's license, SSN, employer, or references for the past tenant so I can provide the information to the new property manager to file for collection. Any feedback or advice would be appreciated. 

[Michael Smythe]

@Jasmeial Jackson and @Account Closed

You both seem a bit naive about federal laws regarding this.

The primary law that governs how institutions can use or share personal information about consumers is the Gramm-Leach-Bliley Act of 1999. This law prohibits an institution from disclosing a consumer’s nonpublic personal information like Social Security numbers, income, and outstanding debt, to companies that are not legally related to the institution.

https://www.ftc.gov/business-g...

https://www.ftc.gov/business-g...

Also, most credit agency contracts do not allow their clients to share info with 3rd parties, which an owner would be.

“This data may not be sold or shown to any party not affiliated with the original contract."
https://www.rentspree.com/blog...

Landlords and property managers are required by FCRA regulations to legally review a tenant's credit report (with consent) for the sole intention of determining an applicant's qualification to rent. When setting up an account with a credit reporting agency, a landlord and property manager will submit a simple credit access application and supporting documentation that proves their need for access."
https://www.rentecdirect.com/b...

If a PMC shares the confidential information of a tenant prospect with an owner and that owner somehow allows the info to be used for identity-theft or other related crimes, the PMC will be sued! How will an owner guarantee to a PMC that this won’t happen or pay for any legal costs if it does?

So, an owner insisting that a PMC give them confidential applicant/tenant information, often proves that an owner who THINKS they can DIY manage, has NOT done their homework regarding all the legalities involved in managing rental properties!

Recommend you hire a real estate attorney to assist you in understanding why the property management company shouldn't and doesn't have to share confidential application information with an owner. The attorney can also then assist you with creating the following compliant with all federal, state and local laws:

1) Rental Application
2) Lease & Pet Addendum
3) Renewal documents
4) Nonpayment Warning Letters
5) Eviction Letters & Notices
6) Legal Entry Notices
7) Security Deposit & Release of Liability Letters
8) Vendor Contracts with insurance and other requirements
9) MoveIn & MoveOut Procedures to Share with Tenants
10) Etc.

Hope this helps!