Should condo associations be checking credit scores of potential buyers and renters? Sounds reasonable, as long as the process is fair and above reproach. And those are not easy things to pull off when vetting condo unit buyers and renters. I hear from board directors who believe running credit checks is a great way to determine if the buyer or renter will be an asset to the community or a future liability. 

Don’’t blame associations across South Florida and the state for being gun-shy. Many are dealing with devastated budgets due to owners not paying maintenance fees, many who still collect rent from tenants. But be careful to check your governing documents to find out whether the association has the authority to run credit checks. If not, and your association is bent on doing so, get the membership to agree to a rule change (again, rarely an easy assignment). And make sure your association application forms inform consumers that their credit will be checked, since such checks can lower credit ratings a bit.

As Sun Sentinel guest blogger and an association law expert Donna Berger warns: Associations should review governing documents to ensure they also have the authority to reject buyers and renters based on credit scores. Do not take anything for granted. And don’’t let bad credit scores be your only measure, since many good people and worthy consumers often have credit blemishes. As a principle, it does make sense for associations to do what they can to make sure the buyer or renter coming into the community will no skip out on payments or otherwise be a bad neighbor. But association must think and do research before pulling the trigger on such background tactics. What do you say? Does your association run credit checks? Properly? Have you had a problem getting a buyer or renter accepted by your association? Are there other issues to bring up? Leave a comment or send an email to dvasquez@sunsentinel.com. Published on: January 27, 2010