The Fair Credit Reporting Act; pie, line and bar graph showing reports

The Fair Credit Reporting Act

In 1970, the Federal Government passes the Fair Credit Reporting Act. The purpose was to promote the accuracy, fairness, privacy, and integrity of consumer reporting information. Today a standardized format known as metro-2 is used to facilitate reporting of accurate and complete consumer’s credit history information to major credit bureaus electronically and standardized.

 

What is a Consumer Report?

A consumer report may contain information about a person’s credit characteristics, rental history, or criminal history. Consumer reports are prepared by a CRA and are covered by the FCRA. Examples of these reports include:

 

  • A credit report from a credit bureau, such as Trans Union, Experian, and Equifax or an affiliated company.
  • A report from a tenant screening service that describes the applicant’s rental history based on reports from previous landlords or housing court records. 
  • A report from a tenant screening service that describes the applicant’s rental history, and also includes a credit report the service got from a credit bureau. 
  • A report from a reference checking service that contacts previous landlords or other parties listed on the rental application on behalf of the rental property owner; and
  • A report from a background check company about an applicant or tenant’s criminal history.

 

You can only obtain a consumer report if you have a permissible purpose. According to the Fair Credit Reporting Act, as a landlord, you may obtain a consumer report on applicants or tenants who apply to rent housing or renew a lease and use it to evaluate rental applications. If after evaluating the credit report you decide to deny housing to the applicant you must provide the applicant with an adverse action notice. You may obtain written permission from applicants or tenants to show that you have a permissible purpose.

 

An adverse action notice is a letter that is required by federal law in which you tell your rental applicant that they are being denied based on the contents of their credit report or background check. The notice should indicate which credit reporting agency was used, and how to contact them.

 

The adverse action notice must:

 

  • Give notice of the adverse action
  • Give the name, address, and telephone number of the credit reporting agency which provided the credit report (the telephone number must be toll-free if the agency compiles and maintains consumer files on a nationwide basis). 
  • Include a statement that the credit reporting agency did not decide to take the adverse action and is unable to provide the consumer the specific reasons why the adverse action was taken
  • Give notice of the consumer’s right to obtain a copy of the credit report from the credit reporting agency
  • Give notice of the consumer’s right to dispute with the credit reporting agency the accuracy or completeness of any information in the credit report

 

Any willful or negligent violation of the Fair Credit Reporting Act may result in statutory damages, attorney’s fees, and punitive damages. 

At CRM Properties, we have the knowledge, experience, and resources needed to manage your property. 

This blog post is for informational purposes only and not for the purpose of providing legal advice. 

Learn more about us and our services at https://crmproperties.net/im-an-owner/

 

Bethan Johnson

Turn Coordinator

Bethan is a Property Manager Assistant. She performs all property inspection and evaluations, creates tenant invoices and oversees disposition of security deposits.

Why choose CRM Properties?

We have the best selection of homes in the Kokomo area. Our staff’s dedication to customer service leads to a swift response to maintenance and tenant questions.

 

What is your screening process?

We verify income with copies of pay stubs and verification from your employer. We check court records for any judgments and criminal activity. We also contact your previous landlords directly for a referral. We will verify that the person we call is actually your landlord.

 

Are pets allowed?

Most homes allow pets. We do have breed and size restrictions. We limit the number of allowed pets and you must provide proof of vaccinations on all pets. We charge an additional $25 per month and $150 additional deposit.

 

How much is the damage deposit?

The damage deposit is equal to one month’s rent. An additional $150 is required for all pets.

 

How long of a lease must I sign?

Our leases are typically one year. During winter months we structure our leases to expire during the spring.

 

How do I pay my rent?

You can pay rent in person with a personal check, cashier’s check or money order. You may set up an e-payment or direct deposit. You may also mail your rent or use our dropbox.

 

What happens if I can’t pay my rent on time?

We do not make arrangements on rent. Rent is due on the 1st of each month. Late fees start on the 5th. If we do not receive rent by the 15th we file an eviction. You may stop the eviction if you pay rent in full prior to the eviction date.

 

How are utilities handled?

Utilities are typically the tenant’s responsibility. Utilities must be transferred into the tenants name prior to signing the lease. If the tenant is responsible for the sanitation bill and fails to pay it, we reserve the right to increase the monthly rent and include sanitation in the rent.

 

What do I do if I have a maintenance request?

Why choose CRM Properties?

 

What do you charge?

 

When do I get paid?

 

How much is the damage deposit?

 

How long will it take to get my property rented?

 

How do you market my property?

 

What is your approval process for tenants?

 

What is the tenant deposit and length of lease?

 

Do you accept pets?

 

What is the eviction process?

Amanda Mendenhall

Leasing Agent

Amanda is our Leasing Agent. She oversees property showings and screens applicants.

Bethany Shoffner

Portfolio Manager

Bethany is one of our Property Managers. She is the single point of contact for owners and oversees the tenant experience.

Hannah Dobbins

Resident Service Coordinator

Julie Mullinax

Operations Manager

Julie is our Operations Manager. She oversees the staff and the day to day operations of our company.

Heather Johnson

Property Manager

Heather is one of our Property Managers. She is the single point of contact for owners and oversees the tenant experience

Jennifer Koenig

Resident Services Coordinator

Jennifer is our Office Assistant. She assists the Property Managers with all property and social media marketing.

Amanda Marshall

Maintenance Coordinator

Theresa Cain-Rush

Property Management Assistant

Darin Olson

Maintenance Manager

Darin is our Maintenance Manager. He investigates maintenance issues and offers suggestions and estimates for repairs.

Lynda Simpson

Bookkeeper

Lynda is our Bookkeeper. She handles all accounts payable and receivables. She also coordinates all owner and tenant billing.

Chris Mullinax

Broker Owner & New Business Development

As President and Owner of CRM Properties Chris helps generate new business and works on making sure the business is compliant with all local, state and national laws and ordinances.

Call us at (765) 459-8034 during business hours.

We guarantee that a team member will be on the other end to answer any questions you may have.

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