Millions of people in the United States rent homes. Their landlords may be small mom-and-pop owners, large property management companies, public housing agencies or other types of organizations. Many landlords purchase applicants’ credit reports or use tenant screening companies to assist in evaluating potential tenants. Tenant screening companies are consumer reporting agencies that compile information about potential tenants into a tenant screening report (usually disclosing any criminal and eviction records on the tenant’s background, as well as credit report information). Some tenant screening companies also provide advice to landlords on whether to approve potential tenant applications.
The Federal Trade Commission and the Consumer Financial Protection Bureau want to know more about how these issues are affecting the rental housing industry. To learn more, the Federal Trade Commission (FTC) and Consumer Protection Bureau (CFPB) issued a request for information seeking comments from the public, including tenants, landlords and tenant screening companies, about their experiences.
The information request covers a wide range of issues, including:
- How landlords decide on tenant screening criteria and how this affects potential tenants
- How landlords use certain types of background information (including eviction and housing court records and criminal records), and whether regulators can take additional steps to improve the process
- How landlords set application and screening fees and how these fees affect potential tenants
- How tenant screening companies’ recommendation algorithms are designed and how they play a role in whether a potential tenant qualifies for rental housing
The FTC encourages comments from tenants, potential tenants, tenant rights and housing advocacy groups, property managers, landlords, tenant screening companies and other consumer reporting agencies.
To submit comments, please submit online at www.ftc.gov/tenantscreening. Your comment will be public, so please do not include any confidential or sensitive information. Please submit your comments by May 30, 2023.
