Asset & Income verification discovered shortfall with RentRedi

Asset & Income verification discovered shortfall with RentRedi

Emory ClaytonPro Member
Member since 2019 · 77 posts · 26 votes

Do you have this problem?
I use RentRedi's Asset & Income verification to verify an applicants deposit funds are in their account and also if they meet the income requirements. This is done by the tenant by adding their banking info into PLAID, which then gives a 60 day report of their account. It shows how much money is in the account, an itemized list of transaction history, and a quick summary of each income source (if there is more than one). It works well.
However, I have found that applicants do not have both the deposit funds in the same account that funds are deposited from their job, for example. This is an issue because applicants are only allowed to add one account for this screening process. Its a limitation either on the RentRedi or Plaid side.

To try and prevent this, I've added a yes/no question as part of the application, asking the applicant if they understand this so that they can be sure that whatever account is submitted, will show both their income sources and also show that they have enough money in the account to cover the deposit. It is stated much better than this in the application, but I'll spare you the paragraph.

I perfectly understand that an applicant might not have both the deposit funds in the same account as they use for their regular source of income. However it presents a common issue for me, and I'm curious what process do you use here, specifically as it relates to verifying that an applicant has the necessary funds for the deposit, and that their income source meets the minimum requirement that we have listed.

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  • Vaibhav PuranikPro Member
    Member since 2025 · 92 posts · 52 votes
    1w

    This looks like an legit issue. They need to resolve it. I am about to start using RentRedi, so thank you for flagging it. One thing comes to my mind is simply asking them to send the statement or two of their other account(s) (which has the money) to you.

    • Emory ClaytonPro Member
      OP
      Member since 2019 · 77 posts · 26 votes
      1w

      The reason why the Plaid integration is so important is the fact that the source of the documentation comes from their Bank account, not from them. Any document can be forged, and with the prevalence of AI now days, it will become even more of thing because now it is easier to do. Now, this not to say that we only use this to verify their assets and income. Vetting a potential Tennant takes a layered approach, but our belief is this integration is highly accurate and not easily faked, but nothing is perfect in this world, thus the layered approach ;)

  • Mark UpdegraffBusiness Member
    Real Estate Broker · Rochester, NY · Member since 2010 · 1k+ posts · 706 votes
    1w

    @Emory Clayton I'd separate the two things you're trying to verify.

    One is whether the applicant meets your income requirements. The other is whether they have the funds necessary to enter the lease.

    Those are related, but they aren't necessarily going to be demonstrated by the same bank account.

    A limitation in the software shouldn't automatically become a limitation on how someone manages their money.

    I'd establish a consistent alternative documentation process for applicants whose information can't be verified through the integration.

    The important thing is that you're applying the same standards to everyone, documenting how the requirements were satisfied, and handling sensitive financial information securely.

    I'd also avoid collecting more banking information than you actually need.

    We manage a substantial rental portfolio, and the biggest thing I've learned about screening is that consistency matters more than which particular software you're using.

  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    1w

    How likely is an applicant, willing to allow you to synch one of their bank accounts to Plaid, to commit fraud on another bank statement?

    What percent of applicants committing fraud are likely to apply once they find out you require them to synch their bank info to Plaid?

    • Emory ClaytonPro Member
      OP
      Member since 2019 · 77 posts · 26 votes
      1w

      To answer your question, I don't know. I don't have documentation on the specific statistics. What I do know is that it happens. I hope that I never need a smoke alarm in my home, but I still put one up because I understand the consequences of not doing so.

      In my opinion, the integration with Plaid is something that would be very difficult to fake. The tenant could use someone else's account to show proof of having the deposit and showing income, but their deposits wouldn't match what was the report shows.

      I do understand nothing is fool proof. The idea is to create a seamless process for the applicant to apply while also having several layers of proof that would be incredibly difficult to falsify.

  • Contractor · Pensacola, FL · Member since 2017 · 322 posts · 157 votes
    1w

    Not asset and income, but I did have Rentredi, or whoever they use to check, miss a criminal history.

    • Emory ClaytonPro Member
      OP
      Member since 2019 · 77 posts · 26 votes
      6d

      How did you eventually find out that they had a criminal history?

  • Member since 2023 · 13 posts · 1 vote
    20h

    Mark's got the core of it — separate the two things you're verifying. The operator point I'd add from 236 doors: the one-account requirement doesn't just create friction, it filters out your best applicants.

    Think about who keeps deposit savings and monthly income in the same account. Financially organized people don't — they keep savings separate from checking on purpose. So the tool's limitation is systematically screening out exactly the tenants you want, while the yes/no application question just trains honest applicants to game which account they connect.

    What we do instead: two separate verifications, any account. Income = recurring deposits over 60–90 days showing the money actually lands repeatedly. Funds for deposit = one statement showing the balance exists. Different documents, same written standard for every applicant. The standard is 'verified and documented,' not 'verified through Plaid.'

    One caution: whatever your alternative documentation is, write it down and apply it identically every time. 'Send me another statement' is fine as a process — as an ad-hoc exception, it's a fair-housing problem waiting to happen.

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