It is not legal to create or maintain a bad tenants list
A shared list of positive and negative tenant behavior is the answer
These blacklists are also known as “bad tenant lists” or “do not rent to” lists. Privacy laws prohibit the creation and maintenance of tenant blacklists that could discriminate against tenants, even if the intent is to protect against landlord abuse.
However, the rental industry needs a resource for landlords to share tenant reviews and rental records with one another. Communication and reporting of rental payments between landlords reduces income loss and improves the industry.
Just as important as the ability to report negative or delinquent tenant habits is the capability for landlords and property managers to report responsible tenants who uphold their commitments and demonstrate responsible tenant habits. Tenants who pay rent on time and maintain a properties good condition should be identified and rewarded.
A shared list of both positive and negative tenant behavior is exactly what the rental industry wants and needs. Landlord Credit Bureau is a Reporting Agency that enables landlords to report both good and bad tenant habits. By using Landlord Credit Bureau landlords can report positive and negative information to a centralized database.
With Landlord Credit Bureau it is easy to report both positive and negative tenant behavior. A record of on time rent payments or late rent payments is combined with additional tenant habits to make up what Landlord Credit Bureau refers to as a Tenant Record. A Tenant Record can be searched by other landlords who might be looking for a new tenant and want to confirm they are the right tenant for them. For responsible tenants, a positive Tenant Record with Landlord Credit Bureau will help them skip the line in competitive markets and get the place they want. While delinquent tenants who do not pay rent and cause property damage will be identified as high risk and may miss out on their top choices.
One of the primary concerns with tenant blacklists is accountability. Without the proper measures in place a list that identifies bad tenants only could result in unfair or unjust reporting against tenants. To protect both landlords and tenants, tenants can register with LCB for free to access to their records.
Reporting Agencies such as LCB are subject to provincial and federal legislation. Reporting tenant information to other companies which are not a Reporting Agency and do not have the requisite consumer protections, is likely illegal and may create personal liability. LCB’s built in and automated processes protect landlords and tenants using the platform.