📅 2026 Update: Changes in Tenant Screening and Real Estate Regulations

Since the original article was published, there have been important updates in tenant screening and real estate regulations in the U.S. These changes impact how real estate agents operate and what buyers should consider when renting or purchasing property. The earlier article continues further down the page, providing foundational information on tenant screening.

🏛️ Changes in Real Estate Regulations

The real estate landscape evolved significantly in recent years. A key change was the vacating of FinCEN's Residential Real Estate Reporting Rule on March 19, 2026. This rule was meant to require reporting on certain transactions involving legal entities or trusts.

The decision affects how transactions are monitored, impacting transparency in real estate dealings.

💰 NAR Commission Settlement

In March 2024, the National Association of Realtors (NAR) settled an antitrust case, agreeing to pay $418 million. The settlement led to major changes in commission structures, effective August 17, 2024. One significant change is the prohibition of showing buyer-agent compensation in Multiple Listing Service (MLS) listings.

This requires buyers to sign agreements with their agents before property showings.

🖼️ California's AB 723

California's Assembly Bill 723 went into effect on January 1, 2026. This law requires real estate agents to disclose any digitally or AI-altered images in listings. Agents must also provide the original unedited versions upon request.

This is aimed at increasing transparency for potential buyers.

🏖️ Oregon's HB 2373

Starting January 1, 2026, Oregon introduced House Bill 2373, creating a new license category for timeshare sales agents. This law requires individuals selling or offering timeshares to hold a specific license. It aims to regulate timeshare sales more effectively, ensuring that agents meet certain standards.

📌 Key Points to Remember

  • 🏛️ FinCEN's reporting rule was vacated, affecting real estate transaction monitoring.
  • 💰 NAR's settlement changed how commissions are displayed and required buyer-agent agreements.
  • 🖼️ California mandates disclosure of altered listing images.
  • 🏖️ Oregon established licensing for timeshare sales agents.

💡 Tips for Tenant Screening and Real Estate Transactions

Review the details of your own situation with your attorney.

🔍 Understand the NAR Changes

Be aware of the NAR Commission Settlement and the requirement for a written buyer representation agreement. This change impacts how agents are compensated and how buyers interact with their agents.

📜 Review Closing Costs

Closing costs typically range from 2% to 5% of the mortgage amount. These costs cover essential services like title insurance and government recording fees. It's important to factor these into your budget when purchasing property.

📅 Prepare for the Closing Process

The closing process usually takes between 30 to 60 days after an offer is accepted. On average, it takes about 43 days to close a conventional mortgage. Being prepared for this timeline can help reduce stress during the transaction.

📝 Be Aware of Assignment Fees

If you are involved in real estate wholesaling, remember that assignment fees can range from $5,000 to $20,000. This fee depends on the property's value and can significantly impact your financial planning.

💡 Utilize Free Resources

Look into free resources offered by the U.S. Department of Housing and Urban Development (HUD) and state real estate commissions. These organizations provide valuable information on tenant rights and fair housing laws.

🏆 Tenant Screening Services Ranked by User Reviews (2026)

This section reviews services relevant to tenant screening and real estate transactions. These services have been ranked based on Trustpilot data as of October 2026. Ratings can change, and star ratings are only one factor to consider, as unhappy customers often leave more reviews than satisfied ones.

🥇 1. LegalZoom

LegalZoom has been rated 4.6. It is known for offering comprehensive legal solutions and business formation services. However, some users report delays and communication issues, which may affect their experience when seeking assistance in real estate transactions.

🥈 2. Notarize

Notarize holds a Trustpilot score of 4.5. It is recognized for providing online notarization services available 24/7. Users appreciate the convenience but have noted occasional technical glitches that can disrupt the notarization process.

🥉 3. Proof

Proof, formerly known as Notarize, also averages 4.5 stars. The service focuses on identity assurance and online notarization. Some users find the platform complex, which may lead to confusion during transactions requiring notarization.

4️⃣ Rocket Lawyer

Rocket Lawyer has a Trustpilot score of 4.5. It is known for affordable online legal document preparation and a range of legal services. Users may find that the subscription model does not suit everyone's needs, which could limit access to certain features.

🆓 Free Resources for Tenant Screening

The U.S. Department of Housing and Urban Development (HUD) offers free resources related to fair housing laws and tenant rights. Many state real estate commissions also provide free guidance on real estate rules and regulations, which can help users navigate the tenant screening process.

🔎 What to Compare When Choosing Services

  • 🔍 Trustpilot ratings and review counts.
  • 📞 Customer service quality and response times.
  • 💰 Costs associated with services and any hidden fees.
  • 📜 Availability of resources for tenant rights and legal guidance.

❓ Frequently Asked Questions

🏡 What is tenant screening?

Tenant screening is the process landlords use to evaluate potential tenants. This includes checking credit history, rental history, and background checks to ensure reliability.

📅 How long does the closing process take?

The closing process generally takes 30 to 60 days after the seller accepts an offer. The average time for a conventional mortgage closing is about 43 days.

📝 What are closing costs?

Closing costs typically range from 2% to 5% of the mortgage amount. These can include fees for title insurance, lender charges, and government recording fees.

📜 What is a buyer representation agreement?

A buyer representation agreement is a written contract that outlines the relationship between a buyer and their real estate agent. It is required before buyers can tour properties.

👩‍⚖️ What should I do if I believe my tenant rights are violated?

If you feel your tenant rights have been violated, you can seek assistance from HUD or your state real estate commission. They provide resources and guidance on fair housing laws.

🤝 How do I find reliable real estate agents?

To find reliable real estate agents, consider checking reviews on platforms like Trustpilot. You can also ask for referrals from friends or family who have recently bought or rented properties.

⚖️ Recent Court Cases Impacting Tenant Screening

Recent court rulings have shaped the landscape of real estate and tenant screening, including significant changes in reporting requirements and commission structures.

You can browse more rulings on the news page for additional recent developments.

End of October 2026 Update






The Importance Of Tenant Screening: Protecting Your Investment And Your Sanity


As a landlord, you've worked hard to accumulate your rental property portfolio. You've invested time, money, and resources into making it a valuable asset. But, all of that can be undone if you're not careful in ing the right tenants to occupy your property. That's where tenant screening comes in – a crucial step in protecting your investment and ensuring a smooth and successful rental experience.

Why Tenant Screening Is Necessary


The reality is that many landlords have been burned by bad tenants. They've suffered from late rent payments, property damage, and even eviction. These experiences can be costly and time-consuming, not to mention the stress and frustration they can cause. By screening potential tenants, you can avoid these problems and ensure that you're only renting to responsible and reliable individuals.

The Benefits Of Tenant Screening


So, what are the benefits of tenant screening? Here are just a few:

1. Reduced Risk: By screening potential tenants, you can reduce the risk of renting to someone who may not pay their rent or cause damage to your property.
2. Increased Reliability: A thorough screening process can help you identify reliable tenants who are likely to pay their rent on time and take care of your property.
3. Improved Communication: Tenant screening can also help you identify potential communication issues early on, which can prevent misunderstandings and conflicts.
4. Better Property Management: By screening tenants, you can ensure that your property is being managed effectively and efficiently, which can help to maintain its value and reduce wear and tear.

The Tenant Screening Process


So, what does the tenant screening process involve? Here are the key steps:

1. Application: Potential tenants submit an application for rental, which typically includes personal and financial information.
2. Credit Check: You conduct a credit check to evaluate the tenant's credit history and credit score.
3. Background Check: You conduct a background check to verify the tenant's employment history, previous rental history, and any criminal records.
4. Verification: You verify the tenant's identity, income, and employment status through documentation such as pay stubs and tax returns.
5. Screening Report: You receive a comprehensive screening report that summarizes the tenant's background, credit history, and other relevant information.

Best Practices For Tenant Screening


While tenant screening is an essential step in the rental process, there are some best practices to keep in mind:

1. Comply with Fair Housing Laws: Make sure you're complying with all fair housing laws and regulations when screening potential tenants.
2. Keep Records Accurate: Keep accurate records of all applications, credit checks, and background checks to ensure transparency and compliance.
3. Don't Discriminate: Don't discriminate against potential tenants based on their race, gender, age, or other protected characteristics.
4. Be Consistent: Be consistent in your screening process for all potential tenants to ensure fairness and equality.

Conclusion


In conclusion, tenant screening is a crucial step in protecting your investment and ensuring a smooth and successful rental experience. By following a thorough screening process and keeping records accurate, you can reduce the risk of renting to bad tenants and increase the reliability of your tenants. Remember to comply with fair housing laws and don't discriminate against potential tenants based on their protected characteristics. With tenant screening, you can rest assured that you're making informed decisions about who occupies your property – and that's peace of mind!



 



Tenant Screening Laws: Background Information


By law, a landlord is permitted to screen a tenant’s background, including a criminal and civil search and a credit check to determine the prospective renter’s character. The tenant screening process is therefore, a fundamental step to gauge the credit worthiness and character of prospective renters. It is thought to be essential during the interview process to mitigate the probability and subsequent losses associated with default or missed rental payments. A landlord; however, is disallowed from refusing to rent to a tenant without revealing the factors that lead to the rejection—if a tenant is rejected from a rental, the landlord must provide full disclosure as to why.

In a general sense, a landlord must get a tenant’s authorization to access their information—a landlord, by federal law, is not permitted to violate the tenant’s right to privacy. The laws concerning tenant screening are governed by the Fair Housing Act and the Fair Credit Reporting Act.

Through the express consent of a tenant, a landlord is legally permitted to conduct a criminal and civil background check. The permission mandated is typically given by way of lease application; the prospective tenant will express consent on the document, sign it and pay the application fee. In turn, the landlord, according to tenant screening laws, must provide full disclosure in the application or provide the prospective tenant written documentation of their intention to conduct a civil and criminal background check. Furthermore, during the tenant screening process, a landlord is permitted to look for past judgments or evictions.

A landlord that rejects a rental application based on the information observed following the obtainment of a criminal and/or civil background check must give the applicant a written notice as to why he/she was rejected. This notice must contain the information that led to the rejection, where the landlord obtained it from and the agency responsible for reporting it.

Tenant Screening: Credit Check


A landlord is permitted to access a prospective renter’s credit history only after receiving their signed consent. A landlord may access the prospective tenant’s credit report will view their payment history for installment and revolving loans. If the credit history does not reflect a mature borrowing history or does meet the landlord’s leasing requirements, the landlord is required, by tenant screening law, to provide all contact information of the credit agency reporting the items, a notice of the prospective tenant’s right to dispute the information and a notice stating that the prospective tenant has the right to obtain a free copy of the credit report within 60 days.

Other Inquiries Associated With The Tenant Screening Process


Landlords may contact a prospective tenant’s previous landlords to gather information concerning the individual’s behavior and payment history. A prospective landlord may inquire as to how the applicant honored their previous rental contracts and whether instances of bounced checks or irregular behavior was common. When a landlord contacts a previous landlord, the individual may not make personal inquiries, including questions revolving around the prospective tenant’s sexuality, their social life, marital status etc. Additionally, a landlord can contact an individual’s previous employers, to gather information regarding the individual’s work history and dates of employment.

Tenant Screening