What is considered "adverse action" in tenant screening?

Adverse action in tenant screening refers specifically to actions taken by a prospective landlord or property manager that negatively affect a tenant's application to rent property. Denying a rental application due to negative information—such as poor credit history, eviction records, or unfavorable references—constitutes adverse action because it is a decision that diminishes the applicant's chances of securing housing.

In this context, the correct answer addresses the core definition of adverse action. It reflects the legal standards that mandate landlords to follow specific protocols when they take actions that can impact a tenant’s rental opportunities. For example, if a landlord checks a tenant's credit report and finds issues that lead them to reject the application, that decision is considered an adverse action.

The other options do not fit the definition of adverse action. Providing a rental history to potential tenants, accepting an application, or offering lease terms, all indicate positive engagement with the applicant rather than a detriment to their chances of securing a lease. These actions are supportive in nature and do not reflect a decision that would disadvantage a tenant.