The Risks With Using Paper Rental Applications

I recently received a call from a condo association manager that was referred to me. She was concerned about their paper rental applications. They have been using paper applications for over 40 years and had them all stored in their offices. Legal names, dates of birth and social security numbers were written in each of them.

The manager finally realized the risks associated with having thousands of  documents containing sensitive personal information on the premises. The office was also running out of space to store them which made the matter even worse.

The need for personal data

Detailed personal information is crucial to be able to make a qualified decision. Here is a link to a post that does a good job of explaining why this data is important when assessing rental applicants. https://bit.ly/2I6rDG9

Identity theft risks with paper applications

Identity theft is the fasted growing white-collar crime in America according to the FBI.

Real estate agents, property managers and landlords that use paper rental applications are increasing the risk of identity theft.

There are 2 types applications that pose these risks-

1) An actual paper application that is handed out at the location or available on line and then downloaded to be completed. The completed application is then hand-delivered, emailed or even faxed back to the office.

2) An online fillable pdf.

The security problems stem from the fact they are printed out to be viewed and distributed.

A paper application contains the applicant’s name, date of birth, current address and social security number. Credit card information can also be found on applications in many instances.

This information provides an identity thief with everything that is needed assume an identity and fraudulently use the victims credit accounts.

Paper applications are easy to be viewed by unauthorized individuals. I have seen them laying out in the open at many offices.  Rental offices by their nature normally have people regularly coming in. There are also cleaning and maintenance people that could access them, especially when the offices are closed and no one else is around.

On-line pdf rental applications present an additional security problem  when there are multiple applicants. Many times the co-applicants are required to complete the same application as the primary applicant on the same form. The primary applicant will complete their then the co-applicant will continue with the same application. This allows the co-applicant to see all of the primary applicant’s personal information. This is a cause for concern when the applicants don’t know each other.

The benefits of secure online rental application

Issues associated personal data security dangers can be effectively addressed by using  a secure on-line application program.

Important features include –

–  Individual applications (that can then be combined for review) for each applicant.

–  The ability to capture an SSN for screening purposes, but not make it visible to anyone after it is entered.

–  Access by permission only. If more than one person needs to review the application, each needs to have their own log in credentials.

Paper applications are obsolete and provide a tempting target for identity thieves.  Many of the personal data security dangers with paper rental applications can be greatly reduced by using a secure online rental application and background screening service.

TenantMagic Upgrades and Improvements

 

We are please to announce that TenantMagic has upgraded and enhanced its online rental application and screening program in addition to launching its new web site.

What this means to you –

  • More detailed credit reports
  • More in-depth criminal reports
  • Still the same great customer service that you come to expect from TenantMagic

The credit reports will now break out the lines of credit by type. For each open account we added terms and monthly payments.

New features on the web site now include –

Thank you to all of our regular users. For those of you that have not used us in while, please check us out to see our improvements at www.tenantmagic.net. We know you will be pleased.

Accepting Venmo For Rent Payments?

Online rent collection is a better option.

Many landlords I speak to still collect paper checks for rent payments. They are beginning to realize this is an antiquated and cumbersome process. And, most tenants will tell you that they absolutely detest paying their rent with a paper check. This is especially applies to those under the age of 50.

There are a number of electronic rent collection options. Peer-to-peer payments is one of the newer methods. Venmo and Zelle are two of the more popular apps.  Zelle will not work for most landlords as it has transaction limits of $500 unless your bank is registered.

Many landlords accept Venmo for rent payments. The problem is that Venmo does not permit it to be used for business transactions

Their site specifically states – “Venmo may not otherwise be used to receive business, commercial or merchant transactions, meaning you CANNOT use Venmo to accept payment from (or send payment to) another user for a good or service.”

Venmo further warns – “If you accept a Venmo payment from someone for a good or service and we later review the payment, we may reverse the payment, meaning you could lose both the payment and the item sold.  This review process may not occur until after you attempt to transfer the funds out of Venmo.”

There are other reasons why you should not use Venmo or other peer-to-peer apps for rent payments.

Venmo and most other peer-to-peer payment apps do not allow landlords to set the minimum payment amount that will be accepted. This can be an issue if the tenant sends a partial payment that is automatically accepted.  In most states, accepting partial rent prevents the landlord  from charging  late fees and proceeding with an eviction. Some states will not permit landlords to collect the remainder of the rent.

Peer-to-peer payment apps also lack reporting features. If you are treating your rental properties like a business, it is crucial to be able to track rent payment details for accounting and tax reporting.

The best option for replacing paper checks for both landlords and tenants is online rent collection. Landlords can have invoices automatically emailed to tenants. These rent payments  can then be directly deposited to the landlord’s bank account.

Tenants and landlords can also set up a recurring payments. Each month the tenant’s account is debited for the rent payment and automatically deposited into the landlord’s account.

When choosing an online rent collection program, make sure it has the ability to assess late fees on whatever day of the month you choose. Other important features include detailed account and transaction reporting and not accepting partial payments.

Obviously, cost should be taken into consideration. At TenantMagic, we use Singular Payments which meets all of the requirements I mentioned and costs the tenant a $1.00 convenience fee per rent payment. There is no cost to the landlord. For more information or to register, contact Walter Richardson walter.richardson@singularpayments.com.

Jay Apple is Co-founder of TenantMagic  www.tenantmagic.net, an online rental application and screening program for residential real estate.

japple@tenantmagic.net