All Forum Posts by: Austin Everett

Some answers:

1. Yes you do need to disclose an adverse action notice based on the consumer/credit report you used.  They have a right to contact the agency and request a copy or dispute the report.  Here is the language we use in our adverse action notice to applicants:

" The Consumer Reporting Agency listed above did not make the decision to deny your application and cannot give you any information regarding your denial. It is your legal right to request a free copy of the report within 60 days of receipt of this notice from the above named Consumer Reporting Agency or to dispute the accuracy of the report with the above named Consumer Reporting Agency. We regret we are unable to provide any further information. "

2. You can require an additional deposit, but PA law limits that to two months rent on the initial term.  

3. Be careful, the writing is on the wall.  You could ask for a guarantor or co-signor on her behalf, but make sure you require they show documented income of at least 5x the rent she is responsible for.  Remember, a big part of finding the RIGHT tenant is saying no the WRONG tenants.  Don't be afraid to say no and move on.  It may take a few more weeks but usually someone qualified will come along.  

Some answers:

1. Yes you do need to disclose an adverse action notice based on the consumer/credit report you used.  They have a right to contact the agency and request a copy or dispute the report.  Here is the language we use in our adverse action notice to applicants:

" The Consumer Reporting Agency listed above did not make the decision to deny your application and cannot give you any information regarding your denial. It is your legal right to request a free copy of the report within 60 days of receipt of this notice from the above named Consumer Reporting Agency or to dispute the accuracy of the report with the above named Consumer Reporting Agency. We regret we are unable to provide any further information. "

2. You can require an additional deposit, but PA law limits that to two months rent on the initial term.  

3. Be careful, the writing is on the wall.  You could ask for a guarantor or co-signor on her behalf, but make sure you require they show documented income of at least 5x the rent she is responsible for.  Remember, a big part of finding the RIGHT tenant is saying no the WRONG tenants.  Don't be afraid to say no and move on.  It may take a few more weeks but usually someone qualified will come along.  

You need to brush up on Fair Housing Laws. You can deny them based on low credit you would be required to provide them with the information you saw that the decision was based off. I use mysmartmove for tenant screening and its very easy for them and will give them access to their report if you deny them. You need to create some form of a tenant selection plan and before they apply they will know what your criteria is.. example 600 credit score 3x income etc. You can request additional security deposit but new laws affect how long you can keep that, I believe only one year but you will need to independently verify this. I would rather have an empty unit for 6 months than to let the wrong person in you have to be very disciplined in selecting proper tenants. I am not in the second chance business! 

No advice on who to choose, but for the applicant who had a few late payments, maybe get 12 checks in advance all post dated for due date or have auto payment from their bank to yours every due date