Prospective tenant wants reason for declining them.

13 Replies

I was considering a tenant for my rental and asked them to fill an online credit check with MySmartMove. The system recommended one of the occupants as DECLINE and so I declined their application and now they want written reason. How do i handle this as I don't  want to get in trouble and genuinely declined based on the systems recommendation though Credit score was ok.

They sent email saying: We request our requisite copies of our Transunion credit checks, and written reason for being declined as legally required. 

Give them the copy of the credit report you ran, then inform them they are decided based on credit due to the system standards your company uses. 

You didn't send them an adverse action notice? 

Could the Decline recommendation be based on criminal or eviction history?  I would think SmartMove would give a reason.  If not, give them a copy of the report Transunion sent.  If the decline was not based on the credit then I am not sure if you would need to provide a copy of the credit report legally.

The overall recommendation was ACCEPT but one of the individual had a DECLINE with a 600+ credit score and both had a remark of 

Current address does not match
Address submitted has been reported as suspiious. 

They are too pushy and rude. But how do I write it so I am not blamed for anything.

Just be honest and say you ran it through the system and the system said declined.  

I would say that per my requirement all tenant must have a recommendation of "accept" per the system. As a member of your group failed we cannot offer tenancy . Thank you for your interest. Attached are your reports as desired.

Originally posted by @Jeremy Davis :

Give them the copy of the credit report you ran, then inform them they are decided based on credit due to the system standards your company uses. 

 First check with the bureau / agency via whom you run your credit reports.  In our contracts we are explicitly forbidden from sharing a copy of the credit report, even with the applicant.   We are allowed to sit down with them and show them the report while explaining where we had issues, but we cannot supply a copy.

if the report said that the provided address did not match, couldn't you just use that as an excuse? In Quebec, doing so constitutes a legal violation of information disclosure...

Does mysmartmove give you a rejection letter?  I've been using tenantalert since before Josh linked up with mysmartmove and it provides a rejection letter when it states an applicant is denied.

I don't believe you're required to give the applicant a copy of their credit report at all.  You may have to give them a letter which allows them to get a copy.  But you don't give them the copy.  Tenantalert doesn't even provide it unless you sign up for a more expensive account and submit to on-sight inspections, so I've never seen one for my applicants.  Doesn't matter, they all seem to have bad credit.

We have a form we send to those not accepted. It has a bunch of check boxes we check for the reason. If they do not meet a minimum requirement, such as income equal to three times the rental amount, then it's an easy disqualification. Normally our pre-screening eliminates them before we even get started. If it's credit score related, we give them info on where to check into that - our screening service provides a contact for that. A lot of times it comes down to accepting someone else with equal or better qualifications.

If you reject for credit  I believe you need to state why and one of those above shared that you should just say that  per your requirement the system found x individual did not meet the criteria.  If they don't report all previous addresses you can state that.

I have to say I don't go by what my smart move says on this point. If the address doesn't match it doesn't always mean they are less then upfront on the application.  You can look at the information on the report and determine if the system is just being a computer and a human could have made the match. Here there are some funky addresses.  I look at the report not just the recommendation. I don't always agree with the decline on certain points but you can also choose to just go with the report.

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