Do you think this person is fraudulent?

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Do you think this person is fraudulent?

Curtis StoddardPro Member
Rental Property Investor · Roy, UT · Member since 2016 · 5 posts · 0 votes

Hello all,

I have a prospective tenant applying for a 6 month lease at my 1b1b studio rental unit.  She is an older woman that says she is going through a divorce and wants to move to my town so she can be close to her adult daughter.  She really really wants this unit and has let me know that constantly for 3 days.  She will not complete a background check with me as i require of all my tenants. Instead she had her daughters husband fill out the report and says he will co-sign with her on the lease. He passed the background check with flying colors. She says that she will pay all 6 months of rent and deposit at the signing of lease.

Should i be concerned with this person???

Or should i get all 6 months rent up front and have her son in law cosign on the lease. I'm a pretty new landlord and have not come across something like this before.  thank you for all your advice in advance.

-Curtis

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Linda WeygantPro Member
Investor and CPA · Arvada, CO · Member since 2015 · 2k+ posts · 3k+ votes
7y

Refusing the background check would be a deal breaker for me.  The offer of cash up front also does not pass the sniff test.  This is somebody who is desperate and my gut feel is there is more to the story than just a divorce.  Check social media and google to see what's out there.  Make sure you check newspapers in her hometown as well.  But only if you're determined to give her a chance.

I'd give this one a hard pass, even with the daughter/husband as co-signers.  If you've got other qualified applicants, I'd go with somebody else who doesn't have this weirdness going on.

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  • Ryan BlakePro Member
    Lender · TX · Member since 2018 · 936 posts · 713 votes
    7y

    @Curtis Stoddard I would say that anyone on the lease needs to complete a background check. There is definitely more going on that you are being told.

    SPECULATION: I think that she is not getting out of a divorce and is more than likely getting out of jail/prison.

    I would not want someone purposefully being deceptive renting from me. That being said, if it is something like prison and it was a non-violent crime, I would still consider that tenant depending on the part of town, amount of rent, and other tenants in the building.

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  • Sam Shueh
    Real Estate Agent · Cupertino, CA · Member since 2016 · 4k+ posts · 1k+ votes
    7y

    Not sure about Utah law you may want to read about it for your benefit.  Probably accepting 2 month deposit.

    Have a couple who needed to move out of their family house. Income is low. The uncle who is a lawyer wanted to co-sign for 30 some year old tenants.  Declined it and took a chance. Do not want lawyer to be involved.  Most tenants here have bad credit and they lease because they can not afford a home. 


    1Reply
  • Linda WeygantPro Member
    Investor and CPA · Arvada, CO · Member since 2015 · 2k+ posts · 3k+ votes
    7y

    Refusing the background check would be a deal breaker for me.  The offer of cash up front also does not pass the sniff test.  This is somebody who is desperate and my gut feel is there is more to the story than just a divorce.  Check social media and google to see what's out there.  Make sure you check newspapers in her hometown as well.  But only if you're determined to give her a chance.

    I'd give this one a hard pass, even with the daughter/husband as co-signers.  If you've got other qualified applicants, I'd go with somebody else who doesn't have this weirdness going on.

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  • Andrew B.
    Rockaway, NJ · Member since 2016 · 2k+ posts · 2k+ votes
    7y

    I absolutely would not agree to this. Absolute best case scenario is you get a decent tenant for 6 months. I'm assuming you have other potential tenants right? Worst case is all hose red flags are significant and something is amiss. Why take the risk if you don't have to.

    1Reply
  • Matt K.
    Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes
    7y

    Fail to see the reward here for assuming a higher amount of risk...

    3Reply
  • Rhett Dean
    Rental Property Investor · Lehi, UT · Member since 2015 · 25 posts · 23 votes
    7y

    I agree with everyone else. You are to at risk to rent to someone without all the info. If they have stuff in their past but can explain it that’s ok for me sometimes but if it smells fishy and is setting off alarm bells which it sounds like in this situation is then you should listen to your gut and pass here.

    0Reply
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    7y

    @Curtis Stoddard you say she won't do a back ground check but is that a credit check or a criminal check or both?

    It may be a credit check she is concerned with. Very often a divorce includes bankruptcy. I would go back to her and explain that you can address credit problems with a co-signer, but criminal problems are non-negotiable. She must submit to both credit and criminal reports, so you have all the details to make a decision. Just tell her you can't complete the application until she does that.

    I would not assume her seeming desperate means she is covering something up. Sometimes people have had a tough situation and need a break, which may appear desperate to you. I had an applicant who had their home destroyed by flood, with three small children. She was desperate, but only because she needed a home for her family. They were the best tenants I ever had.

    7Reply
  • William Hochstedler
    Broker · Logan, UT · Member since 2013 · 1k+ posts · 1k+ votes
    7y

    There are a lot of tenants in the Ogden area with stories and cash who badly fail tenant screenings.  I agree with the jail (or drugs) assessment.

    This is how you get a meth house.  Pass.

    2Reply
  • Anthony Wick
    Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
    7y

    Nothing to think about, or do here. She refused one of your criteria. She doesn't get to rent. Simple. 

    5Reply
  • Drew Forte
    Investor · Lebanon, OH · Member since 2017 · 10 posts · 5 votes
    7y

    Stick to your rules, do not bend them. If she will not complete the document or do a background check I would be will to bet you will have issues down the road. Shes not the only renter in town. 

    1Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    7y

    Big red flag.

    I run a background check for a variety of reasons but one of them is criminal history. I run it on everyone. It's very common to have a squeeky clean woman dating a "bad boy" with terrible credit and criminal history. I had one woman apply to rent from me and then learned her boyfriend just got out of prison for sexual assault.

    it doesn't matter who is footing the bill. Check every person, every time.

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    7Reply
  • Account Closed
    Rental Property Investor · Central, FL · Member since 2016 · 950 posts · 821 votes
    7y

    like others I’m all about the no background check not going to rent my place. 

    If you have her name I would google the crap out of that name and at least have a sorta a answer to it if you are thinking jail.  If it is divorce it is public record as well just FYI.  

    0Reply
  • Matt K.
    Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes
    7y

    The only answer he needs is a yes to credit/background check. Till that it doesn't matter what theory he has or what is or isn't on Google...

    0Reply
  • Shannon M.
    Property Manager · Twin Falls, ID · Member since 2017 · 42 posts · 11 votes
    7y

    I think there are some big red flags here! I would pass on this one!

    0Reply
  • Thomas S.
    Member since 2016 · 13k+ posts · 12k+ votes
    7y

    You have waste far too much time on a unqualified applicant. You should have rejected her application when she refused your screening requirements. Landlords that work at trying to make unqualified applicates qualify is always a mistake.

    3Reply
  • Marci Stein
    Rental Property Investor · New York, NY · Member since 2011 · 956 posts · 510 votes
    7y

    She’s not a fraud - she’s telling you up front she has something to hide. 

    Have her provide 2 months security deposit in addition to the rent  and use the co signer.

    1Reply
  • Wesley W.
    Rental Property Investor · The Vampire State · Member since 2013 · 2k+ posts · 2k+ votes
    7y

    I would have stopped her at refusing to have a check run.  In my portfolio, that is a REQUIREMENT for consideration as a tenant.  Not just for my business risk, but also for the safety of my other tenants.

    The willingness to pay rent upfront is also a huge red flag as several have said, but as I state I would not have ever gotten that far.  Her application would be DOA.

    1Reply
  • Rich Senyszyn
    Member since 2018 · 46 posts · 43 votes
    7y
    @Curtis Stoddard All tennanants must go through all the same checks for me. No exceptions. I deal with a fair number of criminals in my job and when they refuse a request there is pretty much always a problem.
    1Reply
  • Marian Smith
    Real Estate Investor · Williamson County, TX · Member since 2011 · 1k+ posts · 961 votes
    7y
    @Curtis Stoddard A background check is a “who are you?” And she doesnt want you to know. It isn’t all about getting rent.
    0Reply
  • Jack Dalrymple
    Rental Property Investor · East Coast · Member since 2018 · 96 posts · 65 votes
    7y

    Ignoring the facts she's verbally disclosed, she's telling you there are skeletons in her closet.  If she's not willing to do a simple background check why are you willing to risk your time, assets, and/or financial future?

    Also, I recall reading somewhere (forums, books, etc.?) that accepting full rent up front is generally not a great idea despite sounding ideal.  If I recall correctly, it creates a liability for the owner by muddying the legal water if an eviction were to become necessary if they violate other terms of the lease.

    1Reply
  • Greg GaudetPro Member
    Investor · Pukalani, HI · Member since 2017 · 413 posts · 291 votes
    7y
    @Curtis Stoddard If you have a bad feeling follow your gut. Why on earth would she refuse a background check??? I just search my applicants on the county court website, but that’s only local to our island.. Anyway there’s plenty of qualified tenants out there. Tell her she doesn’t qualify unless she passes your background check.
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  • Matthew McNeil
    Rental Property Investor · Boise/Portland · Member since 2017 · 709 posts · 742 votes
    7y

    Each time I've not paid attention to those yellow caution/warning lights (similar to what you're seeing) it has cost me.  

    The last one cost me dearly....

    3Reply
  • Christi HawkinsPro Member
    Columbus, OH · Member since 2017 · 237 posts · 142 votes
    7y

    @Marian Smith @Curtis Stoddard   I completely disagree with "a background check is who you are", unless you have a lifetime of criminal activity. A background check shows what you've done not who you are. Clearly, this women has something in her background she thinks will disqualify her, why not just make her tell you the truth and then make your decision. If she refuses to do that then I'd deny her application. But at least hear her out first, it may be something that happened 20 years ago and she's lived a good life since. 

    0Reply
  • Kelly Iannone
    Rental Property Investor · Orlando, FL · Member since 2018 · 301 posts · 354 votes
    7y
    @Curtis Stoddard I agree with most everyone else, pass on her. Background (credit and criminal) are required. As Sam S said too, I avoid lawyers too 😊
    0Reply
  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    7y

    Explain to her and son in law there are a lot of bad reasons people don't agree to background checks and that since she won't agree you must assume the worst and she is disqualified.  You are happy to consider her with all your normal checks. If you will accept bad credit with the cosigner I would share that as well then stop taking her calls. If she has not rented for many years she may not understand the process.  Why is it a six month lease anyway?

    0Reply
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