Are your rental applicants using fake pay stubs?

Are your applicants using fake pay stubs?
Fake pay stubs are easy to get

In a previous post, I discussed the ease of getting a fake credit report and why you should always run your own screening reports for rental applicants. Credit reports are not the only fake documents that are readily available online. Fake pay stubs are also easily available for under $10.00.

https://www.realcheckstubs.com and https://fakepaystubonline.com are just 2 of many services that can be used.

It only takes a few minutes to generate a fake pay stub and they can look very authentic. If the rent is $1200 per month and you require a 3-1 income to rent ratio, no problem. The applicant can simply generate pay stubs showing income of $3600 per month or more regardless of what they make.

Income is obviously one of the more important requirements when considering a tenant. Lack of sufficient income will typically result non-payment of rent and ultimately in an eviction.

Fortunately there are a number of steps you can take to verify an applicant’s pay stub information.

  • Take a close look at the deduction amounts. Calculate them to see if they make sense and are in-line with the state where they work. City and state tax rates are readily accessible on line.
  • Ask for bank statements that correspond with the dates of the paystubs to see that the money was actually deposited into their account.
  • Look at eviction and credit reports to see if there are any anomalies.

Some resources suggest contacting employers to verify the income. I do not recommend this, as many employers will not provide that information. Some larger corporations that do, will outsource the service to a third party which can charge up to $25. With the steps I outlined you should be able to get verified income without the significant time and effort required to contact the employer.

The best way to incorporate these steps into your application process is to use a online rental application and background screening program. An applicant completing a TenantMagic application give permission for the agent or owner to ask for information such as bank statements in addition to the credit, eviction and criminal information pulled from the bureaus.

TenantMagic www.tenantmagic.net comprehensive application and tenant screening at no cost to offers real estate agents, property managers and landlords. Applicants pay the fee.

Jay Apple is co-founder of TenantMagic, LLC  www.tenantmagic.net

Technology-relevant lead generation for property managers and landlords

Use technology-relevant lead generation
Millennials hate voice mail

Technology-relevant lead generation is so important to effectively market your properties, especially to millennials.

Many owners and property managers I speak with are always looking for a reliable source for rental applicants.

A significant number of these applicants will likely be millennials. According to a cnbc article  http://www.cnbc.com/2016/09/09/millennials-will-be-renting-for-a-lot-longer.html, over 60% of people in the 25 to 34 age group, are renting their residences.

In addition to listing on sites such as  Craigslist or Zillow, many owners or managers place a “For Rent” sign out with a phone number of the owner or property manager.

“For Rent” signs will typically attract potential applicants that have a greater interest,  as they are making the effort to check out the property and the neighborhood.

The problem with the “For Rent” signs is that the phone is the method of contact. This brings up a number of issues.

Potential applicants often look at properties during evenings and week-ends when rental offices are closed and owners are not always available. Many applicants, especially millennials,  are adverse to calling and even a larger number refuse to leave a message. If they do leave a message (which is unlikely)  and you call them back, don’t even think of leaving them a voice message.

Millennials hate voicemails. They don’t like leaving voicemails and will typically send a text message instead. They also often avoid listening to voicemails that have been left for them by others. Here is a great column giving a millennial’s perspective on voicemails.

http://www.baltimoresun.com/entertainment/bthesite/bs-b-0618-column-20150617-story.html

So, what is the best way to use “For Rent” signs? Use a text lead generation program for the signs. This is a good example of technology-relevant lead generation.

Full disclosure – TenantMagic has launched Rider Sign Leads www.ridersignleads.com. The program provides property managers and owners with a customizable code that can be placed on the “For Rent” sign riders, either in addition to or  replacing the phone number. When the prospective applicant texts the code to the number on the sign, they receive the rental details, owner/manager contact information and a link to the web listing of the property. The owner/manager receives the phone number of the prospect.

Technology is changing the way we shop, live and make decisions. It is imperative to make sure that your business can accommodate the tech tools that are being used by your target market.

Jay Apple is co-founder of TenantMagic, LLC  www.tenantmagic.net

Why you shouldn’t use a credit report provided by a rental applicant

Fake credit report web site

Here is a big reason why you should never use a credit report provided by the rental applicant for an application.

It is quite easy to get fake one.  Simply by Google “Fake credit report” and fill out the on-line pdf. Here is a link to one of the sites so you can see for yourself. https://fake-credit-score.pdffiller.com/

Agents and landlords should always use a reputable online tenant screening program to avoid fakes.

You obviously want to know that the information in a completed rental application and screening report is accurate.  It is also critical to know that the person submitting it is who they claim to be.

A quality screening provider will verify the information provided by the applicant and their identification.  When an applicant enters their social security number into the system. The credit bureau will then check to see that the personal data of the applicant matches with what the bureau has on file (date of birth, current address, etc.) The process should then require the applicant to verify their ID. This is accomplished by answering questions that only the applicant would know the answer to such as amount of car payment, previous address or auto loan amount.

Additionally, a credit report is only one of the reports that should be considered by an agent or landlord You really need an eviction report, a criminal history report and a sex offender report to do a thorough review of an applicant.

There is no shortage of scammers out there. And once they are in a property, it is difficult and expensive to get them out.  Then there is often significant damage to the property once you do get them out.

Fortunately there are high-quality tenant screening service providers that you can use.  A good tenant screening service will help identify unqualified applicants before the lease is signed, saving you time and money.

Jay Apple is co-founder of TenantMagic  www.tenantmagic.net Continue reading Why you shouldn’t use a credit report provided by a rental applicant

Personal data security dangers with paper rental applications

 

Personal data security dangers with paper rental applications
Your personal data is at risk with paper rental applications

In my last post I discussed the fair housing compliance issues associated with paper applications. In this post we will look at applicant personal data security dangers with paper rental applications and how to keep applicant data secure.

Best practices in screening rental applicants require detailed personal information. You can check out this post to get a good explanation of why this data is important when assessing rental applicants.  http://www.kimberlyhowell.com/renters-landlords/why-does-a-rental-application-require-so-much-personal-info/

According to the FBI, identity theft is the fasted growing white-collar crime in America.

Believe it or not there are still many real estate agents, property managers and landlords that use paper rental application.

There are 2 variations of these

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.

Both present serious security problems as they are ultimately printed out to be viewed and distributed.

A paper application contains the applicant’s name, date of birth, current address and social security number.  I have also seen credit card information on an application

This is everything an identity thief needs to wreak havoc with an individual’s ID.

Paper applications are not easy to keep secure and away from prying eyes. I have seen them laying out in the open at many offices. These offices typically have a steady stream of people regularly visiting them. There are also cleaning and maintenance people that could access them, especially when the offices are closed and no one else is around.

Fillable, on-line pdfs 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 his/hers 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 all that well.

The solution to resolving these issues associated personal data security dangers with paper rental applications is to use a secure on-line application program.

Make sure it has the following features-

–  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 on 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 reputable on-line rental application and background screening service provider.

The (not so good) trend in tenant behavior

   This              Not This

I met with a group of  property managers and landlords from a neighborhood association that consisted of more than 150 duplexes built between 60 and 80 years ago.  What makes this neighborhood particularly interesting is that these homes were designed to look like single-family homes.

There have been two troublesome trends that have had a negative impact on the neighborhood over the past five years or so.

The first is that the number of absentee landlords has increased to 55%. The other is that the quality of tenants has noticeably declined.

Many of the landlords in attendance had more than 20 years of experience.

They shared stories with me about the “good old days” when tenants were accepted with a handshake and many times they didn’t even collect a security deposit. One landlord told me that it wasn’t unusual for the property to be in better shape after the tenant moved out.

Today, the number of problem tenants has increased dramatically and these landlords are trying to figure out what they can do. A big part of the problem is that they are small landlords and not aware of the tools that are available to them or only know about property management software and credit screening providers that cater to large property managers.

Background screening has become a crucial step in helping assure the quality of potential tenants. An industry rule of thumb is that 80% of a landlord’s tenant headaches can be eliminated if applicants are properly screened.

Finding a background screening and credit check provider can be a daunting task. Many that are readily available can be difficult to understand and to figure out how to use to properly evaluate an applicant. Landlords must also be aware Fair Credit Act compliance issues involved when using a credit report.

Next… What to look for in a tenant screening provider.