Handling tenant screening information comes with real responsibility. Credit reports and background data contain highly sensitive personal details, and how that information is stored matters just as much as how it is obtained. For landlords and property managers, proper storage is not only a best practice—it is a compliance requirement under the Fair Credit Reporting Act (FCRA) and applicable privacy laws.
At Tenant Screening Center, Inc., we work with landlords, property managers, and housing providers who rely on consumer reports to make informed rental decisions. One area we see frequently overlooked is what happens after a credit report is pulled. Knowing how to store tenant credit information properly helps protect applicants, reduces liability, and supports responsible screening practices.
Why Proper Storage of Credit Information Matters
Tenant credit reports contain Social Security numbers, account histories, payment behavior, and other personally identifiable information. If that data is mishandled or exposed, it can put applicants at risk for identity theft and put property owners at risk for legal action.
Improper storage can lead to:
- Violations of the Fair Credit Reporting Act
- Exposure under state data privacy laws
- Loss of trust with applicants and tenants
- Increased liability in the event of a data breach
Secure handling of consumer reports is part of using them responsibly. It also demonstrates professionalism and care in how tenant information is treated.
Written Authorization Comes First
Before storing anything, it is important to remember that tenant credit information should only be obtained with written authorization. The FCRA requires landlords and property managers to have permissible purpose and documented consent before requesting a credit report.
Authorization forms should clearly state:
- That a consumer report will be obtained
- The purpose of the report
- Who is requesting it
Only after proper authorization is received should a credit report be accessed or stored.
Secure Digital Storage Is Essential
Most tenant screening information is stored digitally, which makes security especially important. Credit reports should never be saved in plain emails, shared drives with open access, or unsecured cloud folders.
Best practices for digital storage include:
- Encrypted files or secure portals
- Password-protected folders
- Secure screening or property management systems
- Separation from general tenant files
Limiting where and how reports are stored reduces the risk of unauthorized access and accidental exposure.
Limit Access to Authorized Individuals Only
Access to tenant credit information should be strictly limited. Only individuals who are directly involved in the screening or leasing decision should be able to view these reports.
This typically means:
- The landlord
- A designated property manager
- Authorized staff with a clear business need
Credit reports should not be accessible to maintenance staff, administrative personnel without screening responsibilities, or third parties without permissible purpose.
Define and Follow a Retention Policy
Keeping credit reports indefinitely creates unnecessary risk. A clear retention policy helps ensure reports are kept only as long as reasonably necessary.
Many landlords and property managers retain reports:
- For the duration of the lease
- Plus a reasonable period afterward for legal or compliance purposes
Once that period has passed, reports should be securely destroyed. Retention policies should be applied consistently across all applicants.
Securely Destroy Physical Copies
If credit reports are printed, they must be handled with extra care. Physical copies should never be discarded in regular trash bins.
Proper disposal includes:
- Cross-cut shredding
- Secure document destruction services
If a report is printed temporarily, it should be destroyed immediately after it is scanned or no longer needed.
Understand FCRA Adverse Action Requirements
If a tenant application is denied or approved with conditions based in whole or in part on a credit report, the FCRA requires that an adverse action notice be provided.
This notice must include:
- That a consumer report was used
- The name of the reporting agency
- A statement of the applicant’s rights
Proper storage of reports supports accurate record keeping if an adverse action decision is ever questioned.
Protecting Your Business and Your Applicants
Secure storage of tenant credit information protects more than just data. It protects your business, your reputation, and the individuals who trust you with their personal information.
By following FCRA-compliant storage practices, landlords and property managers demonstrate professionalism, reduce exposure to legal risk, and reinforce confidence in their screening process.
At Tenant Screening Center, Inc., we believe responsible tenant screening includes not only accurate reporting but also careful handling of consumer information throughout its lifecycle.
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