A tenant screening checklist that follows the law
Legal tenant screening comes down to four habits: write your criteria before you advertise, apply them the same way to every applicant, get the applicant's permission before you pull a report, and send an adverse action notice whenever a report plays any part in a denial or in tougher terms. The federal Fair Credit Reporting Act (FCRA) sets the notice rules, and the FTC and CFPB explain them for landlords. This checklist walks through each step in order.
Before the first applicant: write your criteria
Screening goes wrong most often before any report is pulled. If you decide what you are looking for after you see an applicant, two people with the same record can get different answers, and that is the pattern fair housing complaints are built on. Write a one-page screening policy and give it to every applicant with the application.
- Income: the multiple of rent you require (for example 2.5 times the monthly rent), and which kinds of income count. Several states require you to count housing assistance and to measure only the tenant's share of the rent; see source of income laws.
- Credit: what you look at (unpaid rent or utility debts, recent evictions) and what you ignore (medical debt, for example).
- Rental history: how many years of references you check and what a failed reference means.
- Criminal history: whether you consider it at all, which convictions, and how far back. This is the area with the most state and city rules; see what you can ask on an application.
- Order of decisions: first come, first served, or a set review window, so you can explain why one complete application beat another.
Check fee limits in your state before you charge anything. New York, for example, caps the fee for background and credit checks at the actual cost or $20, whichever is less, and waives it if the applicant brings a check from the past 30 days (N.Y. Real Property Law 238-a).
Pulling the report: permission and purpose
Under the FCRA, a landlord may get a consumer report on someone who applies to rent or to renew a lease, or with the person's written permission. The FTC's guide for landlords also says you must certify to the screening company that you will use the report only for housing. In practice, put a signed consent line on the application, so the permission is never in doubt.
- Give the applicant your written criteria and the application together.
- Collect a signed consent to obtain credit, eviction and background reports.
- Verify identity before you order anything, so you pull the right person.
- Order the same report package for every applicant for that unit.
- Record the date, the report ID and who reviewed it.
Deciding, and what counts as an adverse action
An adverse action is broader than a no. The FTC defines it as any action that is unfavorable to the applicant's interests, and gives three examples a landlord meets every week: denying the application, requiring a co-signer, and requiring a larger deposit or higher rent than another applicant would pay. If information in a consumer report played any part in that decision, even a small part, a notice is required. A denial that rests partly on a credit report needs a notice even when income was also a reason.
Example a made-up 24 unit building rents a one-bedroom for $1,400 and requires income of 2.5 times rent, or $3,500 a month. An applicant earns $4,200, which passes. Her credit report shows an unpaid $2,300 balance owed to a former landlord, so the owner approves her only with a co-signer. Requiring a co-signer is an adverse action based on the report, so she must get an adverse action notice even though she was approved.
The adverse action notice: what it must say
The FTC and the CFPB list the same core contents. The notice can be oral, written or electronic, but written is the one you can prove later, so send it in writing and keep a copy.
| Item | What to include |
|---|---|
| Who supplied the report | The screening company's name, address and phone number |
| Who decided | A statement that the screening company did not make the decision and cannot explain why it was made |
| Free copy | The applicant's right to a free copy of the report if they ask within 60 days |
| Disputes | The right to dispute information in the report that is inaccurate or incomplete |
| Credit score, if you used one | The score, its range, who made it and when, and the key factors that hurt it, in order of importance |
The CFPB adds that a screening company generally has 30 days to investigate a dispute, and sometimes 45. If an applicant tells you a record is wrong, say how they can reach the company, and decide whether you will hold the unit while they do. Whatever you decide, decide it the same way for everyone.
After the decision: storage and disposal
Screening files hold Social Security numbers, dates of birth and debts. The FTC says that when you are finished with a report you must dispose of it securely: shred or burn paper, and delete electronic copies so they cannot be read or rebuilt. Keep your decision record (criteria used, date, outcome, notice sent) separately from the report itself, so you can show what happened without keeping the sensitive file.
- Keep the signed consent and the adverse action notice with the application.
- Do not email full reports to anyone who does not need them.
- Set a date to destroy reports for applicants who never became tenants. Ask your own attorney how long your state expects you to keep application records.
The checklist on one screen
- Written criteria, handed out with the application.
- Fee within your state's limit, or no fee.
- Signed consent to obtain reports.
- Same report package for every applicant.
- Decision recorded against the written criteria.
- Adverse action notice for any denial, co-signer, larger deposit or higher rent based in any part on a report.
- Credit score details in the notice if a score was used.
- Reports destroyed securely once you are done.
Where DoorKeeping fits
The screening decision stays yours. DoorKeeping runs your buildings through Claude or ChatGPT, with one-tap approval for anything involving money or a legal step, for $2 per unit per month, and once you approve an applicant it sends the lease for e-signature. It does not give legal advice, so check the screening rules in your state and city with your own attorney.
Sources
- FTC, Using Consumer Reports: What Landlords Need to Know, read Oct 29, 2026
- CFPB, What should I do if my rental application is denied because of a tenant screening report?, read Oct 29, 2026
- New York Real Property Law 238-a, fees and charges, read Oct 29, 2026
Questions
- Do I need to send an adverse action notice if I approve the tenant?
- Yes, if you approve them on worse terms because of a report. The FTC counts requiring a co-signer, a larger deposit or higher rent as adverse actions.
- Can I give the adverse action notice by phone?
- The FTC and CFPB say it can be oral, written or electronic. A written notice is far easier to prove later, so most owners send one and keep a copy.
- How long does an applicant have to get a free copy of the report?
- Sixty days from the adverse action. Your notice must tell them so and name the screening company that supplied the report.