Applicants provide their own credit report

Managing Your Property
1yFollow

Applicants provide their own credit report

John McManus
Member since 2023 · 3 posts · 3 votes

Hello there, I’m in a situation where I had a really good couple apply for one of my units. Their applications paint a really good picture. However, instead of going through SmartMove, they were insistent on providing their own credit reports from Equifax, saying that they would rather not pay the $47 fee. The Equifax report also paints them in a good image, but I do understand that they could’ve potentially forged those reports. Any advice on how I should proceed? My thought would be just to call them up and ask them to do the SmartMove report anyways.


edit: I’m not against us paying for the report. I think the bottom line is just getting third-party confirmation.

1Reply
50 views

Most Popular Reply

Greg ScottPro Member
Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
1y

My immediate reaction was that the credit report is fake.

Don't deviate from your processes.  A good tenant would not care about the $47 if it gets them into a property they like.

On a related note, if you do not follow your standard process for EVERYONE, you can be accused of, and charged massive fines for violating fair housing laws.

4Reply
See this reply in the discussion

12 Replies

Jump to latestLatest
  • Greg ScottPro Member
    Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
    1y

    My immediate reaction was that the credit report is fake.

    Don't deviate from your processes.  A good tenant would not care about the $47 if it gets them into a property they like.

    On a related note, if you do not follow your standard process for EVERYONE, you can be accused of, and charged massive fines for violating fair housing laws.

    4Reply
  • Adam BartomeoBusiness Member
    Real Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
    1y

    We do not allow tenants to provide credit reports. As you stated, you can always pay for it. If they are resistant than there is probably a bigger concern. 

    [email protected]239-339-3969
    Bartomeo Property Management4.7150 Reviews
    WebsiteView Page
    2Reply
  • Matthew Paul
    Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
    1y

    Fake credit reports are easy as this https://pdf.wondershare.com/templates/credit-report-template...

    3Reply
  • John McManus
    OP
    Member since 2023 · 3 posts · 3 votes
    1y

    Happy ending: The couple was fine with doing SmartMove. They initially just wanted to save on the $47 charge. Based on what we saw, we're going ahead with them!

    Thank you all for your responses, this was an area I was uncertain with.

    2Reply
  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    1y

    @John McManus we are now in the position in RI that we have to accept credit reports within 90 days provided by tenants, but it is worth it to pay for the reports.  The tenant with bad credit knows it and will apply anyway but you can tease out the worst ones, make them aware you are going to run a report even if they provide it.  Sometimes then they stop applying and I only have to guess that credit is bad is why.

    1Reply
    • Jay HinrichsBusiness Member
      Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
      1y
      Quote from @Colleen F.:

      @John McManus we are now in the position in RI that we have to accept credit reports within 90 days provided by tenants, but it is worth it to pay for the reports.  The tenant with bad credit knows it and will apply anyway but you can tease out the worst ones, make them aware you are going to run a report even if they provide it.  Sometimes then they stop applying and I only have to guess that credit is bad is why.


      with photo shop  and computer fraud that's crazy.  I had a client photo shopping settlement statements swamping me out and putting themselves in and their address to their office then telling their buyers to wire money directly to them.. Buyers were out of country and did not know any better .. That guy somehow has stayed out of jail but he has gotten wiped out financially and well he deserved to be.. I did fine as I knew how to protect myself..
      Podcast Guest on Show #222
      JLH Capital Partners51 Review
      WebsiteView Page
      2Reply
  • Mackaylee BeachPro Member
    Real Estate Agent · Kansas City, MO · Member since 2020 · 1k+ posts · 492 votes
    1y

    It's essential to adhere to your screening protocol—prospective clients should fill out your application, allowing you to receive screening information directly from the providers. I never accept credit reports directly from applicants. This ensures that all information is consistent and verified, maintaining the integrity of your property management process. By relying on reputable screening services, you can make informed decisions based on accurate data, reducing the risk of renting to potentially problematic tenants.

    Furthermore, keeping a standardized screening procedure protects you legally and provides a fair playing field for all applicants. It’s crucial to stay updated on fair housing laws to avoid any discriminatory practices unintentionally. Remember, a thorough screening today can save you from future headaches, ensuring that your property remains a profitable and harmonious investment.

    [email protected]
    1Reply
  • Bill B.
    Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    1y

    I know you say the problem already resolved itself. But just blame the government, nobody likes them anyway. 

    “I’m sorry. I understand you have a credit report but I have to treat every applicant exactly the same or I could face huge fines for violating fair housing laws… Sorry. “

    1Reply
    • John McManus
      OP
      Member since 2023 · 3 posts · 3 votes
      1y
      Quote from @Bill B.:

      I know you say the problem already resolved itself. But just blame the government, nobody likes them anyway. 

      “I’m sorry. I understand you have a credit report but I have to treat every applicant exactly the same or I could face huge fines for violating fair housing laws… Sorry. “


       That typically is our (rather valid) excuse!

      0Reply
  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    1y

    @Jay Hinrichs Law in RI, but tenants don't understand the law either.  They think if they provide their own you can't run one, I can if I pay for it.     

    Wow that is real fraud with a lot of $$ on the table.  You have to ask how these people don't go to jail when the jail is full of relatively crimes.  

    0Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    1y

    Don't deviate!

    Yes, it sucks for applicants to have to spend multiple application fees on every house they are interested in.

    Pretty sure Zillow is trying to standardize the process and because they have the most rental applicant eyeballs - they will probably eventually succeed.

    Hopefully, they will create a system where a rental applicant will pay for one background check and then be allowed to share a link to access it (to preserve report integrity and avoid fraud) with a LIMITED number of landlords. 
    - Why a limit? Because some desperate and idiotic applicants will otherwise apply EVERYWHERE and waste the time of a LOT of landlords:(  Also, the credit bureaus won't want to give up too much of their income from multiple pulls.

    [email protected]248-209-6824
    Logical Property Management4.9460 Reviews
    WebsiteView Page
    1Reply
  • Peter MckernanBusiness Member
    Residential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votes
    1y

    I would not allow this for the tenant to provide their own credit report, on some leases I will take it on first intake then run our own when we are closing in on who we want to pick.. But always run your own. 

    There was an example of this from a past client, he got his house listed by another agent, the agent took the application and the people gave the agent their credit report from their own file. The tenants moved in, and after the first month stopped paying rent and he had to evict them from the property for non-payment. It took 6 months for them to get out. So, do not take someone else's provided credit report. 

    The McKernan Group4.957 Reviews
    WebsiteView Page
    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free