While it is important to conduct a background check before agreeing to lease an apartment, house or storefront to an applicant, it is critical to understand that doing so is regulated by state, local and federal law. Five points landlords, tenants and screening agencies should know about tenant screening laws include: the Fair Credit Reporting Act (FCRA) provides baseline protections for tenancy applicants; state and local ordinances often regulate tenant screening more stringently than federal law; credit reporting agencies may be exposed to suit under new ordinances; landlords and property owners may be subject to criminal, as well as civil liability under new ordinances; and whenever in doubt, follow the stricter jurisdiction’s rules.
