2. THE FAIR CREDIT REPORTING ACT
If you use credit reports to screen applicants (which most landlords do), you must comply with the Fair Credit Reporting Act (FCRA). If you deny housing based on information in a credit report, you’re legally required to issue an “adverse action notice” to the applicant. This notice must include: • The name and contact information of the credit reporting agency. • A statement clarifying that the agency didn’t make the rental decision. • A notice of the applicant’s right to dispute the report and request a free copy within 60 days. Download AAOA’s free adverse action notice. Landlords who report nonpayment of rent to credit bureaus must also update the report if the debt is later paid.
3. IMPLIED WARRANTY OF HABITABILITY
Every state recognizes the implied warranty of habitability, which guarantees that all rental units must be safe and livable. This includes working plumbing, heat, hot water, and protection from pest infestations. If a property becomes uninhabitable and repairs aren’t made within a reasonable time, residents may be legally entitled to withhold rent or terminate the lease. While tenants are responsible for damage they cause, landlords must make repairs related to wear and tear or emergencies. Keeping your rental property in good condition isn’t just the law, it also protects your investment.
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