An adverse action notice is a document required by the Fair Credit Reporting Act (FCRA) that must be sent to any rental applicant who is denied housing, charged a higher rent, or required to pay a larger deposit because of information found in their consumer report (credit report, background check, or eviction history). The notice informs the applicant why they were rejected and provides them with the contact information for the agency that provided the report so they can dispute any inaccurate information.
How It Applies to Florida Landlords
In Florida, landlords who use third-party screening services must comply with federal FCRA requirements. If you base your decision to reject an applicant—even partially—on their credit report, you are legally required to provide this notice. Failing to do so can lead to federal investigations, lawsuits, and penalties. It is a best practice to have a standard process for sending these notices as part of your tenant screening workflow, regardless of the applicant's status in the decision process.
Key Takeaways
- FCRA requires an adverse action notice if you deny a tenant based on a credit report.
- The notice must include the name and contact info of the screening service.
- This is a federal requirement that applies to all Florida landlords.
- Improper screening practices are a common source of landlord liability.