1. Landlord’s Legal Center
Franco Simone, Esq.
1660 Hotel Circle North, Suite 610
San Diego, CA 92108
(619) 235-6180 Telephone
(619) 235-6392 Facsimile
www.landlordslegalcenter.com

2. Screening Applicants
 Purpose:
The primary goal of the screening process is to find a
desirable tenant, typically a stable occupant who is a
good credit risk and will not damage the premises or
disturb other tenants.
IN OTHER WORDS— TO AVOID BAD TENANTS
WHICH CAN COST YOU $$$$$$$$$$$$
 Damage to your unit
 Eviction fees and attorney’s fees

3. Landlord May Use These Factors
Credit Standing
Employment history
Amount (not source) of income
Rental History
Past bad conduct relevant to reasonable
belief applicant may be direct threat to
health or safety of current
tenants/neighbors

4. What Steps Should I Take To Screen
Applicants
Rental Application
Verifying Information on Rental
Application
Credit Report

5. GOAL OF RENTAL APPLICATION
Is to obtain information about an Applicant to determine if that
person will be a stable, responsible individual who will have the
ability to pay the rent. (See Form #1-Rental Application)
The application should contain the applicant's express written
authorization for the landlord
1) to contact all persons or firms named as references,
former landlords, or employers;
2) to verify the contents of the application, including
obtaining a credit report on the applicant;
3) A written application must be signed by the applicant
before a landlord can obtain a credit check.

6. Written Rental Applications
What NOT to Ask:
It is illegal for the Landlord to ask Tenant questions
about race, color, religion, sex, sexual orientation,
marital status, national origin, ancestry, familial
status, source of income, disability, age, medical
condition, victim of domestic violence or whether you
have persons under the age of 18 living in your
household.
LL can’t ask about immigration or citizenship
status.

7. Exceptions
LL can’t discriminate because of source of income BUT
can ask Tenant’s source of income and the level of income
Tenant asks for an “accommodation”-Proof of Disability
For housing limited to persons of one sex who will share
living areas in a single dwelling unit
LL can limit the number of persons per unit-however…..
Section 8

8. RED FLAGS ON APPLICATIONS
Incomplete application
Tenant wants to move in quickly
Check ID with name on application-Get copy of ID
Make sure name matches Social Security number
IF employer sounds fishy try calling through separate
telephone number you obtain on your own
Get an application from any one over 18 years of age

9. Verify Application Information!!!
 Contact all persons or firms named as
references, former landlords, or employers
and
Verify the contents of the application,
including obtaining a credit report on the
applicant.

10. BAD EXCUSES NOT TO VERIFY INFO
“They seemed like nice people.”
“I didn’t have time.”
“They were referred to me by a friend/Pastor/family
member.”
“I really enjoy the eviction process.”

11. Verifying Information
Income-Pay stubs, 1099s, award letters, call employer
Personal ID-Drivers Lis., Passport, green card
Past residences-Send a letter/Call past Landlords
Pull a Credit Report to compare with the information
on the Application

12. Credit Report
LL can charge up to $49.50 in an Application fee to
apply to actual out of pocket costs to cover credit
report and checking personal references. (2012)
Three credit bureaus: Equifax, Trans Union and
Experian

13. Who Provides the Credit Report?
 Even though you may do so, do
NOT accept the tenant’s copy of
his/her credit report.

14. Credit Scores-An Overview
The highest possible credit score under the FICO
system is 850.
Any score between 850 and 720 is considered to be
excellent.
Scores between 719 and 600 still qualify for credit.
Scores between 599-300 high-risk

15. Reading a Credit Report

16. Part 2

17. Part 3

18. Part 4

19. Part 5

20. Part 6

21. Part 7

22. Part 8

23. Fair Credit Reporting Act (FCRA)
What a Landlord Needs To Know:
If you are a LL or management company who uses
“consumer reports” to evaluate rental applications your
need to follow FCRA
FCRA designed to protect the privacy of consumer
reports information and guarantee that the information
is correct.

24. What If I Don’t Follow FCRA?
Applicant can sue in Federal court for damages,
attorney’s fees and court costs.
If deliberate…..punitive damages
Federal Trade Commission or the states may sue LL
for non-compliance and get civil penalties.

25. What is a Consumer Report?
Credit Reports
Tenant-Screening Service-rental history
Reference-Checking Service

26. What Actions Are Covered?
Depends on who is verifying the
references?
If by an Agency hired by LL------ COVERED
If by LL’s employees------ NOT COVERED

27. What is an Adverse Action?
Any action taken by the LL or management
company that is unfavorable to the interests
of a rental applicant is covered by the FCRA
For example:
Denying applications, requiring a co-signor
or requiring an additional deposit.

28. What Does This All Mean?
If you use a consumer report issued
by an agency you hired and that report
causes you to take an adverse action
against a rental applicant the YOU
MUST give the applicant notice that
this occurred.

29. When is a Notice Required?
Take the Case of……
1. Further investigation
2. Consumer report part of the decision
3. Increase in deposit
4. Using Agency to check employment

30. What Information Must Be Included In a Notice?
Name, address and telephone number of the Agency
which issued the report.
Statement that the Agency supplied the report did
not make the decision for the adverse action.
A statement that the applicant has a right to obtain,
within 60 days, a free copy of the credit report from
the agency and the right to dispute the accuracy of
the information. See Form 2

31. Some Legal Protection
If LL inadvertently fails to provide a required Notice
in an isolated case, then LL has some protection from
damages if LL can demonstrate “that at the time of
the…violation he maintained reasonable procedures
to assure compliance” with the FCRA.

32. Final Thoughts
Be consistent in the Application Process:
Use same rental application
Always pull a credit report
Always verify the same information
Exceptions-Disable Applicants-”reasonable
accommodations”

33. Screen criteria should relate to legitimate LL
objectives
No Subjective Criteria-long hair, smells bad
More Final Thoughts

34. QUESTIONS