Buddy pretended to be current landlord!

Buddy pretended to be current landlord!

Rental Property Investor · Mesa, AZ · Member since 2015 · 143 posts · 187 votes

I had a seemingly nice young lady apply for one of my rentals. I did a little background check on her and her boyfriend, he had a few misdemeanors a couple years ago but nothing serious. He has a decent job and makes enough to cover the bills. The first little red flag was when she told me she was moving because her current landlord won't fix a gas leak and back up sewer line in her house. I thought it was odd, but maybe she's telling the truth. I asked for her to text me pics of her and boyfriend's licenses and paystubs and she sent them right over. I then asked for her current landlord's name and number, nothing. I call and text the next day, nothing. 

She had given me her current address so Iooked up the owner on the county records and checked out the house on Google street view just for the heck of it. As luck would have it the 7 year old Google pic had a for rent sign in the front yard with a phone number. I called and left a message yesterday. I know it was the right number because his voicemail says "hi this is Dallin from ******* mortgage company, leave a message."

 Finally today she responds, tells me she was in the hospital with her sick kid, second red flag. I ask if she still wants the house and she says she does. I tell her again I need her landlord's number and she sends it over, of course it's different from the one I had found. I called and talked to the fakest landlord of all time. It was comical! He said they always pay on time, great tenants, the house is having problems, bla bla bla. Then I tell him I'm interested in getting a mortgage with him because I know he works at ****** mortgage company! He told me he work's there "sometimes" and he's not in the office right now and he'll have to get back with me on that, yeah sure. 

I called the real landlord back and luckily he happened to pick up. We had a nice chat, turns out he owns the 4plex down the road from one of my properties. The tenants in question are two months behind on rent, imagine that! They do complain about the house but never call to schedule the landlord's contractors like he asks them to. 

Score: Trashy tenants: 0       Me: 1

Its a small victory but I'll take it :) 

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Buffalo, NY · Member since 2013 · 106 posts · 75 votes
7y

We perform about 200-300 verification call per day. I can tell you a few things based on our experience

1. Verifications are NOT bullet proof but should never be skipped. 

2. It's a fairly common misconception that landlords will give a good reference for the sake of getting the bad tenant out. If anything, a landlord will decline to comment if they're having major issues. But more often than not, they want to be sure another landlord does not have to suffer like they did. Yes, there is some sense of comradery among landlords.

3. You can sniff out a friend/buddy posing as a landlord by asking some loaded questions you already have the answers to. Like what is the full rental property address. You'd be shocked how many people know what street their friends live on but don't know the house number or zip code.

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  • Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes
    7y

    lol great story! 

    Whenever we get a past LL reference and call, and the LL says all the horrible things about the prospect tenants, I’ve thought “why the hell didn’t these people give us a fake (friend) number to call?”

    We’d never be able to find out. We wouldn’t have time to do the DD you did 

    Congrats on saving yourself from a sure headache 

  • Investor / Broker · Brooklyn, NY · Member since 2016 · 665 posts · 1k+ votes
    7y

    As part of my due diligence, I always ask for proof that the prospective tenant has paid the last month's rent.

    I personally don't care how much praise the current landlord gives me about the prospective tenants, that could be a smoke screen to get rid of the trouble makers as fast as he can.

    While it's not 100% fool proof, if I don't see a cashed check or other proof that the tenant has paid his current rent, I'm going to put this tenant through the grinder to get every single detail I can.

    I consider this kind of check to be more important than an Eviction check. If you have trouble tenants, you may give them cash for keys.

    If you haven't paid your rent, you won't pull that one over on me.

  • Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes
    7y

    I have found that some/most verified Landlords will give them a GREAT reference just to be rid of them. Years ago I may have been guilty of the same thing...screen screen screen

  • Real Estate Broker · Watertown, NY · Member since 2016 · 1k+ posts · 1k+ votes
    7y

    Well done!  It's amazing how much money/time you can save with just an hour or two of due diligence. 

  • Specialist · Middle Grove, NY · Member since 2016 · 57 posts · 12 votes
    7y

    Sounds like you saved yourself a lot of trouble by taking the time to check them properly.  Great lesson for all of us.

  • Member since 2016 · 13k+ posts · 12k+ votes
    7y

    Congratulations for caring enough about your investment to do your own screening.

    No one cares as much about thorough screening as a landlord that does it themselves. Most PMs would not have caught the red flags or if they did may have chosen to over looked them.
  • Specialist · Middle Grove, NY · Member since 2016 · 57 posts · 12 votes
    7y

    Sounds like you saved yourself a lot of trouble by taking the time to check them properly.  Great lesson for all of us.

  • Real Estate Agent · Malaysia · Member since 2015 · 56 posts · 22 votes
    7y

    Great sharing, at least I have some ideas of how to avoid this issue by doing some "homeworks"

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

    It's nice to get a good landlord reference. But it's not foolproof either. Like somebody else said, they could be wanting to get rid of their headache. I like the credit check for past pay or quit, eviction notices. Public record. Not foolproof either though. Many landlords don't even file, just hoping their headache will leave. I went the extra step recently and asked for copies of bank statements to verify funds available and regular deposits from employment. 

  • Buffalo, NY · Member since 2013 · 106 posts · 75 votes
    7y

    We perform about 200-300 verification call per day. I can tell you a few things based on our experience

    1. Verifications are NOT bullet proof but should never be skipped. 

    2. It's a fairly common misconception that landlords will give a good reference for the sake of getting the bad tenant out. If anything, a landlord will decline to comment if they're having major issues. But more often than not, they want to be sure another landlord does not have to suffer like they did. Yes, there is some sense of comradery among landlords.

    3. You can sniff out a friend/buddy posing as a landlord by asking some loaded questions you already have the answers to. Like what is the full rental property address. You'd be shocked how many people know what street their friends live on but don't know the house number or zip code.

  • Real Estate Broker · Temecula, CA · Member since 2014 · 992 posts · 782 votes
    7y

    Bam!  Well done.     I love to ask if they are the owner or the property manager.  If htey are the owner, I can look up the name easily and verify their billing address from the tax records.  IF they are the agent, i can verify their license number very quickly.  These are items the scammy potential tenants dont think about having.  It's great catching people in a lie, but it's even better when everything checks out and I have a great tenant to approve !

  • Specialist · Santa Barbara, CA · Member since 2017 · 38 posts · 21 votes
    7y

    Great share! You really dodged a bullet by following your gut. 

  • Residential Real Estate Broker · College Station, TX · Member since 2013 · 1k+ posts · 969 votes
    7y

    @Llewelyn A.. I would be interested in more info about "proof paid last month's rent". 

    Sounds like a great idea. Something I would like to add - What are you asking for / getting to confirm this.

    TIA!

  • Mindy JensenPro Member
    BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
    7y

    This is a perfect example of how a little upfront work can save you tons of time on the backend. I peered into my crystal ball and saw that if you had rented to this person, she would have quickly fallen behind on her rent, and caused all sorts of problems. Dodged a bullet there.

  • Investor / Broker · Brooklyn, NY · Member since 2016 · 665 posts · 1k+ votes
    7y

    @Jim Cummings

    I ask for proof of payment for your current Month.

    I am currently interviewing tenants for an apt here in Brooklyn, NYC.

    There are so many ways to pay, for instance, some renters pay with Venmo, Paypal, Checks, Cozy.co, etc.

    There really isn't a lot of "Cash Only" payments.

    Now that it's Nov. 2018, I need to see that they had paid rent for Nov. 2018. If they didn't, for instance, using their security deposit for their last month, I will be asking the current Landlord for that info but then I also need to see the Oct. 2018 payment.

    There are always enough traffic for my apts that getting this info from someone means that if they don't provide it, I will not take the chance to rent to them. We will just move on to the next applicant.

    I find the most distasteful part of being a Landlord is to have a bad tenant, especially here in tenant friendly NYC.

    I do my best to ensure that the applicant is current. If the applicant is NOT current, they won't get the apt. PERIOD.

    I cannot imagine that a bad tenant would be current on their rent and paid on time, which is what you can see if you asked for the canceled checks or to see the proof of transaction from their website.

    I consider people who won't give it to me to have a reason not to do it. If you want the apt, and you are motivated enough to give me the proof of good standing, then you really want the apt and potentially will be a really good tenant in the future.

    BTW, I use http://www.avail.co but all of these websites provide the Tenant's Payment history. With Cozy.co it's free. Landlords should do other landlords a favor and use these rent collection websites. The Tenant will have an easy time to prove they paid their rent and help us landords to screen the tenants in a much better way.

  • Residential Real Estate Broker · College Station, TX · Member since 2013 · 1k+ posts · 969 votes
    7y

    @Llewelyn A.. Appreciate the details. I'll figure out some method to include that in my business.

  • Investor · Saint Louis, MO · Member since 2016 · 970 posts · 1k+ votes
    7y

    I would have taken a $100 non refundable  application fee first before turning them down for lying. I hate liars

  • Investor · Edwardsville, IL · Member since 2015 · 432 posts · 481 votes
    7y
    @Llewelyn A. I had a similar prospective tenant a couple of years back. Something didn’t seem right so I decided to stop by their current apartment to have them sign something. To my surprise a deputy sheriff answered the door in his uniform. So does so and so live here? No! I showed him the application to see if he recognized the name. He didn’t but I feel like a little investigation saved my bacon that day.
  • Rental Property Investor · Knoxville, TN · Member since 2018 · 24 posts · 28 votes
    7y
    I have 3 single family rentals and I'm working on acquiring 2 duplexes. Should I form one(or more) LLC's to place these properties in? I've spoken with some local investors and have gotten a mixed response. Thanks!
  • Rental Property Investor · Orlando, FL · Member since 2018 · 301 posts · 354 votes
    7y
    @Llewelyn A. I like your strategy requiring proof of last months rent payment!
  • Investor · Naples, FL · Member since 2017 · 69 posts · 34 votes
    7y
    @Nolan M. Due diligence ftw!! Great work!
  • Real Estate Appraiser · Isabella lake, CA · Member since 2018 · 628 posts · 491 votes
    7y

    [quote]Something didn’t seem right so I decided to stop by their current apartment to have them sign something. To my surprise a deputy sheriff answered the door in his uniform. So does so and so live here? No! I showed him the application to see if he recognized the name. He didn’t but I feel like a little investigation saved my bacon that day.[/quote]

    Then the deupty had his own little investigation to do. LOL.

  • Madisonville, LA · Member since 2018 · 125 posts · 71 votes
    7y
    Well done! I started checking my applicants out on google earth as well. It atleast gives an idea . Hats off to u on the diligence
  • Investor · Denver, CO · Member since 2018 · 57 posts · 30 votes
    7y

    @Nolan M. 

    Funny story/lesson 

    It goes to show how important it is to do your due diligence when doing background checks on potential tenants. 

  • Dallas, TX · Member since 2016 · 1k+ posts · 745 votes
    7y
    @Llewelyn A. Great tip, i am going to add that one. The one I like is to hear from the landlord prior to the current one. The current landlord might have incentive to say a tenant is fine, the one before that has no reason to hold back.
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