Conditional applicant approval with adverse action

[Eric Jones]

I have an applicant I am considering conditionally approving due to a bad credit score. The condition is a higher security deposit. I know I have to send an Adverse Action notice, but I imagine the applicant will ask what issue caused the conditional part of the approval. Is there any problem with letting the applicant know it is due to a bad credit score? I wouldn't think so, but all of the AA forms I've found do not seem to give the option to specify the reason for the AA notice other than noting it is something from a consumer report. I also understand the AA forms are most likely often used for rejections and in those cases I'm sure landlords have no desire to continue the communication with the applicant, but what about in this situation where I am considering conditional approval? Is there any reason to not let them specifically know it is due to a bad credit score and that is why a higher security deposit is being required? Thanks!

[Chris B.]

I have largely been burned by tenants who had low credit scores who I went soft with and let them move in.  Low in this case being in the 500s.  Never again.  620+ or no lease.  In the past when I did accept these, I told them verbally I needed 1.5X (of rent) for deposit (max in AZ) because of their credit.  In the end even the 1.5X wasn't enough and I had losses with pretty much every one of these families.  Its not worth the headache, but if you want to accept it, no need for a form.  Just tell them what you need to be OK with the lease.  When I do deny tenants, I just let them know.  Why put something in writing that someone can try to twist and use against you?  Not that I'm substantially worried because I follow all requirements, but why take the chance?