Background Check Dispute - Eviction & Identity Stolen - Grand Rapids, Michigan

[Mac Boeve]

I recently had an applicant who supposedly had their identity stolen. They had a low credit score but beyond that, they were a solid applicant based on their application and references. I ran a background check through RentPrep and it showed an eviction from a property that was not listed on their application. The applicant claims they were never evicted. However, during that time period, they were supposedly renting from a family member, so I don't fully trust that.

So, most likely the applicant was being dishonest. But it does make me wonder...  

How does one verify that an applicant has had their identity stolen? Assuming it was still in process.

How do property managers handle applicants that legitimately had their identity stolen?

If an applicant had a dispute with their Eviction Screening Report, how should the property manager handle this? Should I deny the applicant, but state that they can reapply once they have resolved the discrepancy? 

I'd lean toward trusting the Eviction Screening Report, but how often (if ever) are these incorrect? Could this possibly be caused by an identity theft?

Thanks!

[Bill B.]

I’d probably pass. But… you could ask for a bank statement and/or a cellphone bill from say, 3 months after the other residency is supposed to have started. (Before they may have run in to financial trouble and skipped out. But long enough for the billing to have been changed.)

[Drew Sygit]

@Mac Boeve if I had a dollar for every applicant claiming identify theft, they only cosigned for a relative or friend, they're working out a payment plan on that chargeoff or they have no idea what that is, so it must not be theirs - I wouldn't be here on BP!

Identify Theft: they didn't report it or do anything about it? UNLIKELY! So, they should be able to provide proof of police report and acknowledgement letter from one of the credit bureaus.

Cosigner: only idiots cosign and think it doesn't count against them. Wait until they get garrnished over it!

Alleged Payment Plan: no lender will move forward without sending a letter to them.

Evictions: make a list of the cities showing up on the background check and then log into the corresponding court websites to see if any landlord-tenant cases pop up. 
-Many applicants claim they weren't evicted, thinking it means bailiffs didn't remove them from a property. The fact that a landlord had to even start an eviction is not good.
- Best way to try to hide an eviction or bad relationship with landlord is to claim you were living with a relative and not paying rent or paying them cash. CANNOT VERIFY and they know it!

How are you deciding, "they were a solid applicant based on their application and references"?
-What references are going to give negative feedback?
-Why are you believing what they put on their application without supporting proof?

We use MLS PRD to look up actual owners of properties on application to confirm they aren't giving a family/friend as their landlord (fraud!). We do the same with addresses on their background checks that they didn't put on their application. We then use whitepages.com account to look up phone numbers to call those owners (not always easy).

If they've got bad credit, we also focus on stable income and employment. In addition to a YTD paystub, we ask for last years W-2(s). We'll even call an employer to verify work dates to see if applicant has a solid 2-year work history. Otherwise, how can they have stable income without stable employment continuity?

Of course, this take a lot of time and it's often easier to just deny them.

BTW: what is the Class of your property, as this sounds like a Class C applicant at best, more likely Class D. Only bad things will happen if you allow them in your Class A or B rental!

[Jon Smith]

Pretty simple when we have this happen.  We have to go off of what the background/credit check says.  So if our vendor for background and credit checks reaches out to us and confirms identity stolen, then we would keep going with the application.  Stay consistent for fair housing.

[Adam Bartomeo]

Trust the FACTS! Anyone can tell a story, but background and credit checks are facts until proven otherwise.

[Mac Boeve]

Quote from @Drew Sygit:

@Mac Boeve if I had a dollar for every applicant claiming identify theft, they only cosigned for a relative or friend, they're working out a payment plan on that chargeoff or they have no idea what that is, so it must not be theirs - I wouldn't be here on BP!

Identify Theft: they didn't report it or do anything about it? UNLIKELY! So, they should be able to provide proof of police report and acknowledgement letter from one of the credit bureaus.

Cosigner: only idiots cosign and think it doesn't count against them. Wait until they get garrnished over it!

Alleged Payment Plan: no lender will move forward without sending a letter to them.

Evictions: make a list of the cities showing up on the background check and then log into the corresponding court websites to see if any landlord-tenant cases pop up. 
-Many applicants claim they weren't evicted, thinking it means bailiffs didn't remove them from a property. The fact that a landlord had to even start an eviction is not good.
- Best way to try to hide an eviction or bad relationship with landlord is to claim you were living with a relative and not paying rent or paying them cash. CANNOT VERIFY and they know it!

How are you deciding, "they were a solid applicant based on their application and references"?
-What references are going to give negative feedback?
-Why are you believing what they put on their application without supporting proof?

We use MLS PRD to look up actual owners of properties on application to confirm they aren't giving a family/friend as their landlord (fraud!). We do the same with addresses on their background checks that they didn't put on their application. We then use whitepages.com account to look up phone numbers to call those owners (not always easy).

If they've got bad credit, we also focus on stable income and employment. In addition to a YTD paystub, we ask for last years W-2(s). We'll even call an employer to verify work dates to see if applicant has a solid 2-year work history. Otherwise, how can they have stable income without stable employment continuity?

Of course, this take a lot of time and it's often easier to just deny them.

BTW: what is the Class of your property, as this sounds like a Class C applicant at best, more likely Class D. Only bad things will happen if you allow them in your Class A or B rental!

 Our screening process is quite thorough, though definitely not as much as yours.

When we receive an inquiry, we state our qualification standards. At this point we only hear back from maybe 20% of people.

If they meet our qualification standard (no verification yet unless they've applied through Zillow) we schedule a tour. We send confirmation texts day of. If it's a no call/no show they're out. 

Once we receive an application. We first review it to confirm they meet our qualification standards. If they do, we then reach out to their supervisor, going through the companies directory (not the phone number on the application). We verify everything listed on their application as well as a handful of other questions (using a modified version of the one from BP). We also look up their previous rental properties and landlords listed and verify those are legit. Then we reach out to those landlords with our questionnaires (again modified versions of those on BP). 

Assuming everything checks out thus far, we then run a background check. This was the first time we've had to deny someone based on their background check. 

When I say "they seemed solid" I had verified everything that I could without running a background check. They had met or exceeded all our qualification standards, except for their credit score, because of the supposed identity theft. Additionally: they had a profession job, they were responsive and easy to work with scheduling the tour, they showed up to the tour early, they were well dressed, polite, well spoke, clean, made eye contact, had a well maintained vehicle.

This was the first time we've had a tenant dispute the findings of their eviction report. I did assume the background check was correct and they were being dishonest. But I thought there might be some small chance they were legit, say maybe 5%. In your experience would this be more like 0%? Have you ever had it where a tenant disputed their eviction report and/or background/credit check, and it turned out they were right?

[Tina Kapur]

Hello, Newbie here.  Just have 1 unit /condo in chicago loop, that is now available for renting.
Posted on Zillow , total of 6 applicants. 2 very interested parties.
What tool/website should I use to do a comprehensive background check?  There are way too many websites.
tried Innago but they seem to have only the application. In which they dont even ask for SSN (I had to edit the application to supply that)?
Someone said ZILLOW is not recommended (not sure why)

Help much appreciated. Thanks!!

[Mac Boeve]

I've been using RentPrep. It was recommended in Brandon Turners book Managing Rental Properties. It does the trick and uses the applicants SSN. It's the only service I've used, so I can't say how it stacks up to others.

[Ned J.]

If there is an alleged discrepancy on a background check or credit report, thats not MY problem and I'm not wasting my time to research if its truly incorrect or not. That on the applicant to do that...

I go by the reports I have in hand.... if the applicant wants to dispute the accuracy of the report they can take it up with that reporting agency. Not my monkey, not my circus

PASS and move on to the next applicant