An adverse action notice is a required communication sent when a rental decision is unfavorable to an applicant because of information in a consumer report, such as a credit, criminal, eviction, or background screening report. In multifamily operations, this can apply to a denial, a conditional approval, a higher deposit, a co-signer requirement, or another less favorable term. The notice explains that a consumer report influenced the decision and helps the applicant understand their rights to review and dispute inaccurate information.