It’s not legal to have a bad tenant list or a bad renters list. In order to be a credit reporting agency for tenants, you must comply with Federal laws. That means reporting good rent pay habits as well as reporting bad rent pay habits. So, a bad tenant list is part of a tenant repository that also includes a list of good tenants.
It is important that landlords and property managers recognize that good tenants should be rewarded, just as bad tenants who don‘t pay rent and damage rental property should be evicted and identified as high risk or a bad tenant.
Years ago, before privacy laws were an issue as there were bad tenant lists in many jurisdictions and with some landlord organizations. But that’s not allowed anymore, besides that there was no accountability. Who reported the bad tenant? Was it in spite or a legitimate report? Some of this reporting may have been unfair and unjustified. Landlord Credit Bureau (USA) and Landlord Credit Bureau (Canada) authenticate or identify the End User (landlord). And the tenant is identified or authenticated in the same manner.
End Users (landlords) sign an agreement wherein they agree to only report accurate information. Tenants can monitor their own accounts and they can dispute a rent report.
A bad tenant list and a good tenant list combined is what the residential rental industry wants and needs to identify good and bad renters, and the Landlord Credit Bureau has that. It is easy to report a bad renter with the Landlord Credit Bureau. Reporting rent payments will minimize risk of rental income loss owing to bad or high-risk tenants, and it will benefit good or low risk tenants.