Are there any laws governing the use of tenant screening services?
Yes, in Michigan there are laws governing the use of tenant screening services. The Michigan Tenant Screening Act (MTA) was enacted by the state legislature in 2006 to ensure that landlords and tenants accurately and responsibly use these screening services. Under the MTA, tenant screening services must include the following: (1) have a valid license from the Michigan Department of Licensing and Regulatory Affairs; (2) collect, verify, and provide accurate information about a potential tenant to a landlord; (3) provide the tenant with a copy of the tenant report; (4) explain to the tenant the process of correcting any errors in the report; (5) notify the tenant of any adverse action taken by the landlord based on the report; and (6) provide the landlord with a written request from the tenant to investigate an inaccuracy in the report. The MTA also prohibits landlords from using a tenant screening service that is not properly licensed. In addition, a landlord must inform the tenant of their right to dispute any information in the tenant report. The tenant must be given at least 30 days to challenge the report. In summary, the Michigan Tenant Screening Act sets out rules and regulations for landlords and tenants when using tenant screening services. The act is designed to protect both parties and ensure the accuracy of tenant reports.
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