1.3.3 Debt to Former Landlords

Many housing providers will deny an applicant if the tenant screening report shows a debt owed to a previous landlord. Under Louisiana law, rent and debts on an open account have a 3-year prescriptive period.1  Landlords frequently report inaccurate debts, often containing “junk” fees unsupported by the lease or the law, that can be challenged under the FCRA.

If the debt is still owed, a tenant’s only remedy is to pay the balance. If the debt has been sent to collections, it is often possible to negotiate a lower balance or payment plan directly with the collections agency. Collections agencies are especially amenable to negotiating lower debt balances during tax season.

• 1La. C.C. art. 3494.