In the US, a landlord does not need separate permission to run a credit check on someone who applies to rent: the application itself is the permissible purpose under federal law. Written authorization is still the best practice. In most of Canada, consent comes first, and in British Columbia it should be written. This is information, not legal advice.
What does US law require before a credit check?
US law requires a permissible purpose. Under the Fair Credit Reporting Act, a consumer report may go to someone with a legitimate business need in connection with a business transaction the consumer started, or to anyone the consumer has instructed in writing.
The FTC's guidance for landlords, July 2023, applies that directly: landlords may get consumer reports on applicants and tenants who apply to rent housing or renew a lease, and may also get written permission to show the permissible purpose. You must also certify to the screening company that you will use the report only for housing.
So an applicant who filled out your application has started the transaction. Someone who only asked about a unit, or a tenant midway through a lease who has not asked to renew, has not.
Why get written authorization anyway?
Because it ends the argument. A signed line on the application ("I authorize [company] to obtain a consumer report for the purpose of evaluating this rental application") proves the purpose if anyone asks, covers a co-applicant or guarantor who did not fill out the form themselves, and is what most screening companies want to see before they release a report. Some states add steps after the check too, as California does below, so read the rules where the unit is.
Can a Canadian landlord run a credit check without consent?
In most provinces, no. The Financial Consumer Agency of Canada, updated July 1, 2026, says a business needs your consent before checking your credit report in most provinces, while in Nova Scotia, Prince Edward Island and Saskatchewan it only needs to tell you. Landlords are on the agency's list of those who ask.
British Columbia's landlord guidance, updated March 4, 2026, puts it plainly: landlords may conduct a credit check with the applicant's written approval.
What do you owe the applicant after the check?
Three things, in the US:
- An adverse action notice if the report played any part in a denial, a co-signer requirement, a higher deposit or higher rent. The FTC says even a small part counts.
- The credit score, its range and its key factors, if a score was used in that decision.
- Secure disposal once you are done: shredded paper and deleted files that cannot be rebuilt.
California adds one more, and it does not wait to be asked. Under Civil Code 1950.6(f), as of 2026, a landlord who charged an application screening fee must send the applicant a copy of the credit report, in person, by mail or by email, within seven days of receiving it. For what to do when the report comes back empty, see whether you can deny an applicant with no credit history.
Where does this go wrong in practice?
Before the application. A prospect asks "do you run credit?" in the first message, someone promises "only with your OK" and someone else says "everyone gets checked", and the consent you collect stops matching what you said. The fix is one answer, written once, given the same way to everyone, with the consent line on the application itself.
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Credit checks and permission: FAQ
Is submitting a rental application consent to a credit check?
In the US, applying to rent gives the landlord a permissible purpose under the FCRA, so no separate consent is legally required. A written authorization line is still the safer practice and is what screening companies usually expect.
Can a landlord check a current tenant's credit?
When the tenant applies to renew, yes: the FTC names renewals as a permissible purpose. Pulling a report on a sitting tenant for no transaction they started is the risky case.
Can a landlord run credit on a co-signer or guarantor?
Get the guarantor's own signed authorization. The applicant's application does not cover someone else's report.
Do I need consent for a credit check in Ontario?
Yes. Ontario is not one of the three provinces where notice alone is enough, so get the applicant's consent before you pull the report.
