What can I reveal as reason for denial?

Question

I recently had to reject a potential tenant due Their credit report, specifically, a couple of accounts are in collections.

In the message I sent, informing of the denial, I simply wrote that the denial is having to do with their credit report.

The potential tenant sent a message claiming to have a stellar background.

My question is, whether I could (or should) provide the specifics and inform them of the accounts in collections or would that open up a new can of worms.

Any advice would be greatly appreciated.

Chris Lounsbury · Answer

Hey @Michael Nahm , Do you have a specific application standard you go by? This is the most important piece if you plan on showing them more information. If you have exact and specific standards, for all prospects, then you could release the information to them, however I would still try and remove as much information as possible.

Instead of saying "you have collections with XYZ company for this much money," you could say, "all of our applicants cannot have more than 1 account in collections, and I am getting a flag that you have 2.  If you want to dispute this claim, please contact ABC credit bureau, which is where we pull all of our information.  We can keep your application on hold while you reach out to them, however we do have to continue processing other applications, and therefore cannot guarantee the property will still be available once you get it all sorted out.  If you are able to sort it out, please submit documentation of the error, and we can continue processing your application."

99.99% of the time, you will never hear from these people again.

Kenneth Garrett · Answer

@Michael Nahm

I use a scoring model to evaluate tenants.  This way each tenant falls under the same criteria; this avoids discriminatory accusations.  I use smartmove for my background checks.  As part of there service they will provide a denial letter which explains they have a right to review credit score and it explains how they can acquire it.  It’s important to have a system to evaluate tenants.

Bjorn Ahlblad · Answer

@Michael Nahm make sure all applicants are able to see your base requirements. Either in your ad, in your app etc. There is no requirement to provide a written 'no go' letter or any rejection at all for that matter; but it is generally the right thing to do. The vast majority of our applicants just fall by the wayside as we go through the process. We always inform applicants "we are already working with others and can include you in the mix" and that is pretty much the case. Design your process to "eliminate" not "include" it will save you a lot of time.

Aaron K. · Answer

It's their credit report, if something is wrong they need to fix it, I'd probably tell them and or tell them to look up their credit report for free on their own.

Adam Martin · Answer

I just like to keep everything simple with a text that says I went with another applicant.  The phrase anything you say and do can and will be used against you in a court of law applies so less is more.

What can I reveal as reason for denial?

Most Popular Reply