What must a landlord's adverse action notice say?
If anything in a consumer report leads you to turn an applicant down, ask for a co-signer, or charge more rent or a bigger deposit, the Fair Credit Reporting Act requires you to tell the applicant. The notice must name the screening company that supplied the report, say that the company did not make the decision, tell the applicant they can get a free copy of the report within 60 days, and tell them they can dispute anything wrong in it. If a credit score was used, it must also be included.
When you have to send one
The rule sits in section 615(a) of the FCRA, 15 U.S.C. 1681m(a). The FTC's guidance for landlords explains that an adverse action is not only a flat denial. It includes any decision that is worse for the applicant than what they asked for because of the report, such as:
- Denying the application.
- Requiring a co-signer or a guarantor that you would not have required otherwise.
- Charging a higher security deposit.
- Charging higher rent than you advertised.
The trigger is that something in a consumer report, such as a credit report or a tenant history report from a screening company, played a part in the decision. If you turn someone down for a reason that has nothing to do with a report, such as the unit being taken, the notice rule does not apply, but you should still record the reason.
What the notice must contain
| Item | Why it is there |
|---|---|
| That you took an adverse action, in words the applicant can follow | So they know something negative happened because of the report. |
| The name, address and phone number of the consumer reporting agency that gave you the report (with a toll-free number if the agency is nationwide) | So they know who to contact. |
| A statement that the agency did not make the decision and cannot explain the reasons for it | The decision was yours, not the agency's. |
| A statement that they have the right to a free copy of the report from the agency if they ask within 60 days | So they can see what you saw. |
| A statement that they have the right to dispute the accuracy or completeness of anything in the report with the agency | So errors can be fixed. |
| If a credit score was used: the score, its range, key factors that hurt it, the date it was created and who provided it | Required when a credit score played a part. |
The notice can be written, oral or electronic. Written is safer, because you can show you sent it. Most screening companies provide a template, so ask yours before you write one from scratch.
Steps to send one
- Decide, in writing, which part of your criteria the applicant did not meet.
- Open your screening company's adverse action template. Fill in the company name, address and phone from the report.
- Add the credit score information if a score was part of the decision.
- Send the notice promptly after the decision, to the address the applicant gave, by email or mail, and keep a copy.
- Do not say the agency denied them, and do not quote report details beyond what the template asks for. Point them to the agency for the report.
- If the applicant disputes an item and the agency fixes it, review the application again with the corrected report.
Example a made-up applicant with a 640 credit score applies for a unit where your criteria require 660. You approve her only if she adds a co-signer. That is an adverse action, because the report led you to ask for something extra. You send the notice with the screening company's details and the score information.
Mistakes that cost landlords money
- Skipping the notice when you approved with conditions. A higher deposit counts.
- Treating the notice as a denial letter only. It also covers reports on co-signers and other adults on the application.
- Applying criteria to some applicants but not others. The notice does not fix a fair housing problem; write your criteria down first and use them for everyone.
- Deciding on a hunch and citing the report afterward.
The FCRA lets people sue for willful violations, and a court may award damages, costs and attorney's fees. Sections 1681n and 1681o set those rules. A short, accurate notice is cheap protection.
Sources
- 15 U.S.C. 1681m, Requirements on users of consumer reports, read Oct 30, 2026
- FTC, Using Consumer Reports: What Landlords Need to Know, read Oct 30, 2026
- 15 U.S.C. 1681n, Civil liability for willful noncompliance, read Oct 30, 2026
Questions
- Do I need to send an adverse action notice if I deny someone for a reason other than their report?
- The FCRA notice applies when information in a consumer report played a part. Still note the real reason in your file in case you need to explain it later.
- Does a higher security deposit count as adverse action?
- Yes. The FTC says charging a higher deposit or rent, or asking for a co-signer, because of a report is an adverse action that needs the notice.
- Can I send the notice by email?
- Yes, the notice can be oral, written or electronic. Keep a copy of what you sent and when so you can show it later.