Renters save money with reusable tenant screening reports: These states allow them

Pormezz // Shutterstock Portable tenant screening reports, or PTSRs, might not be the most common topic in landlording circles, but as more states look to recognize these reports, they’re bound to become more prevalent. In in-demand markets, landlords often receive multiple applicants for their vacant properties. Applicants whom landlords feel could be a good fit are screened to illuminate their credit, background, and eviction history. If the renter passes muster, the landlord can approve their application, but of course, not every person who applies will move in. Renters could lose a chunk of change if they experience a string of denials and have to pay a new fee for every application. So, legislative bodies have introduced the concept of portable, aka reusable, screening reports that offer renters a reprieve. For landlords, the new legislation can be confusing. To help ease the burden, TurboTenant discusses what these reports are, tips to avoid fraud, which states currently have legislation on the books, and how to move forward. What Are Portable Tenant Screening Reports? Portable screening reports, or reusable tenant screenings, are credit and background checks that tenants obtain themselves and then share with potential landlords rather than going through individual, landlord-directed screening processes. These self-service reports are usually good for 30 days. Renters can also receive reports from landlords who deny their applications. In this case, the individual can simply request that the landlord email the report. Once they have it, prospective tenants can easily submit it to other landlords when looking for housing, simplifying the application process. That’s the goal, at least. Landlords don’t always have to accept the report, as discussed below in the states section. Standard Information on Reusable Tenant Screening Reports Just because renters can submit reports multiple times doesn’t mean the data on them differs from a standard tenant screening. You’ll still find critical information like: Identity verification Credit history Employment verification Criminal history (where allowed) Sex offender registry checks National terrorist watchlists (where allowed) SSN verification Income information Five Tips to Avoid Tenant Screening Fraud As this new way of screening becomes more widely used, there is potential for misuse. Here are five tips to help you avoid fraud. Scrutinize the report: Check for inconsistencies and verify the source by making sure the report comes from a Fair Credit Reporting Act (FCRA)-compliant agency or third-party website. Look for any signs of tampering, including inconsistent formatting and fonts. Verify independently: It’s crucial to confirm employment (with renter approval) and contact past landlords to validate the information on the PTSR. This step assures you that the information provided is accurate and reliable. Be wary of applicants who seem reluctant to undergo independent verification. Go beyond the report: If there is any doubt, run your own credit check (with renter approval). You may have to foot the bill to complete this process, but it’s better than getting duped. Contact previous landlords: Reach out to past landlords mentioned in the report to verify the renter’s rental history, including payment habits and compliance with lease agreement stipulations. Stay informed: Check with landlord associations or government agencies to stay current on the latest scams and red flags associated with tenant screening. Reusable Tenant Screening Reports by State Here’s a look at six states that currently allow portable reports. The common thread is that if a landlord accepts a reusable report, they cannot charge an application fee. Colorado In TurboTenant’s home state, landlords must accept reusable tenant screening reports, provided the renter pulled the report within the last 30 days. Read on for exceptions. The report must include: Income and employment verification Rental and credit history Criminal history Before requiring any tenant to provide an application fee for screening reports, a landlord must inform renters that they accept such reports and are not allowed to charge any fees to tenants who provide their own. However, if a landlord only accepts one application fee at a time for a unit, and refunds the fee to each applicant who is declined within 20 days, they are not required to accept outside screening reports or provide the aforementioned information. Additionally, if a prospective tenant’s application leads to the landlord obtaining a report, the landlord must share a copy of it with the prospective tenant and inform them of their right to dispute any inaccuracies with the reporting agency. If a landlord doesn’t follow the law, they’re liable for $2,500, court costs, and attorney fees. However, if the landlord cures the violation within seven days after receiving notice, they’ll have to pay the potential tenant $50. Of course, there is a bit more to it than that, but those are the general rules; if you want to read more, visit Portable Screening Report for Residential Leases, an official Colorado state government document. California In California, PTSRs are called reusable tenant screening reports. They also stipulate that the report must be no older than 30 days, and it must include the following information: A criminal history check going back seven years Eviction history check seven years preceding report submission Verification of employment Applicant’s last known address It’s important to note that this bill merely introduces the concept of reusable reports; it doesn’t force landlords to accept them. If a landlord does accept, however, they can ask about material changes to the report that may affect eviction status or another factor. For more information, be sure to check out California Assembly Bill 2559. Maryland Like California, Maryland landlords are not required to accept PTSRs. However, they must provide notice that they do or do not accept these forms. Landlords can disclose that on a rental housing listing, website, online rental application, and other forms of notifying would-be tenants.  The report must be no older than 30 days and include standard information like: Comprehensive criminal history dating back seven years Eviction history for the previous seven years Employment and income verification Current address and rental history Naturally, there is more to it than just this short blurb; all the details can be found in Senate Bill 691. Rhode Island Unlike the previously listed states, Rhode Island’s law stipulates that tenants can use a report older than 30 days, expanding the timeframe to 90 days. Rhode Island’s focus is to declare that landlords can’t demand payment for an application fee.  If prospective tenants do not provide a report, landlords in the state can obtain one at the prospective tenant’s cost. However, they’re not allowed to charge more than the report actually costs the landlord.  If the tenant lets the landlord handle the screening, they must receive a copy of the background check and credit report. More information is available here.  Illinois Illinois’ bill HB3062 features much of the same language surrounding screening reports. The bill allows landlords to accept reusable reports, but it doesn’t mandate it like in Colorado. The report must be no older than 30 days.  The report must include: Name(s) Contact information Employment verification Last known address Results of an eviction history check consistent with applicable law If a landlord accepts a report from a prospective tenant, they cannot charge an application fee. The landlord can also ask the tenant if there’s been a material change in the report since the date it was pulled.  New York Like Rhode Island, New York’s reusable legislation focuses on application fees. New York landlords cannot charge a fee if tenants provide their own background and credit checks.  If the landlord provides the tenant with the report, they can charge a fee, but the fee cannot exceed the report’s actual cost. For more, visit this New York State Senate page.  What It Means for Landlords If you’re a landlord, make sure to read up on the landlord-tenant laws in your area to understand whether or not tenants can use portable tenant screening reports when applying to rent your property.  If they can, make sure you inspect the document closely to ensure that it’s accurate, not older than 30 days, and doesn’t appear fraudulent.  Additionally, the passage of these laws often regulates how much landlords can charge for tenant screening reports. So, make sure to understand this information before your next vacancy. This story was produced by TurboTenant and reviewed and distributed by Stacker.