How much will your home rent for?
If you self manage your rental properties, you as a landlord need to be aware of how you may be affected by new requirements imposed by the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) which amended the Fair Credit Reporting Act (FCRA). Dodd-Frank was signed into law by President Obama in July of 2010. Landlords who take “adverse action” regarding a tenant application will have to provide specified information if that adverse action is based upon the applicant’s credit score.
What is adverse action? What might constitute “adverse action” ? At least one of the following:
If such an action is taken, based on the applicant’s credit score, then the following information must be provided to the applicant:
If one of the factors is the number of credit inquiries made, then that can be listed as an additional factor. Number 5 might pose a problem for some landlords. It is not clear that they are always going to know what the key factors were that affected the credit score. It may require that the landlord will have an ability to interpret the report, not just read the score. Sure, most landlords are going to be able to spot negatives, but they may not know what weight has been assigned to those negatives. Some landlords just want to know the score. That’s enough for them.
These new requirements have been in effect since July 21, 2011. Enforcement will come under the jurisdiction of the new Consumer Financial Protection Agency, and we are learning more and more about this agency….stay tuned for more updates in future posts.
Rather than worry about the above issues, let Property Management Pros – both Fort Lauderdale Property Management Pros and Miami Property Management Pros handle the management of your properties in the Greater Fort Lauderdale area and the Metro Miami area. We make sure that you are always in compliance with ALL Federal, State and Local Laws regarding housing. Housing laws change quickly and as CPM’s (Certified Property Managers) we pride ourselves on staying abreast of all current information and keeping YOU the landlord in compliance.
Call Irv, our South Florida Director of Operations at 954.372.7501 or visit us on the web at either