Adverse Action Notice for Landlords: When and How To Send One
If you deny an applicant, ask for a larger deposit, require a co-signer, or charge more rent based in whole or in part on information in a consumer report (credit report, background check, eviction report), the Fair Credit Reporting Act (FCRA) generally requires you to send an adverse action notice. The FTC enforces these rules.
What the notice must include
- The name, address and phone number of the consumer reporting agency that supplied the report (including a toll-free number if it's a nationwide agency)
- A statement that the agency didn't make the decision and can't explain why it was made
- A notice of the applicant's right to get a free copy of the report from that agency within 60 days
- A notice of the right to dispute the accuracy or completeness of the report
If you used a credit score, additional score disclosures may apply.
How to send it
The notice can be oral, written or electronic, but written is best for your records. Send it promptly after the decision.
If the decision wasn't based on a report
If you deny someone for another reason (for example, their income didn't meet your written criteria based on pay stubs), the FCRA notice may not apply. Information from a third party other than a consumer reporting agency has its own disclosure rules. A clear, written reason that matches your criteria is still good practice.
Keep records
- ☐ The application and your criteria
- ☐ The report you used
- ☐ A copy of the notice and the date sent
Remember to store and dispose of report information securely.
General information, not legal advice. Check state and local rules too.
The Small Landlord Toolkit includes an editable FCRA adverse action notice and a screening checklist.
Small Landlord Toolkit — $19
18-page toolkit for 1-10 unit landlords: rental application, fair screening criteria, move-in inspection, rent ledger and Schedule E expense totals. Instant download: PDF + DOCX + XLSX.
Get the Small Landlord ToolkitAll 10 kits — $59More guides
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