Illegal Arbitrage by a Criminal

[Alex Grady]

I have managed a small portfolio of properties for the past 4 years. But I ran into a major issue that I am hoping to get some perspective on from you all.

TLDR: Can I sue a major corporation for failing to run a thorough background check on a criminal?

I leveraged a platform that I know for a fact all of you are familiar with in order to help find potential tenants for a long term rental. I ran into an individual who submitted a background check through the system and there were no issues whatsoever. She highlighted that she was starting at a new company and moving for the job. She provided an offer letter with what seemed to be a legitimate number and paid first month and the the security deposit. It was a small risk, but I was open to making it work. I leveraged a third party platform that just went out of business called Azibo to collect payment. After she signed the lease too, I was excited to have one less room to fill.

I never met her in person because she drove into town very late. I just gave her the door passcode and told her we could do a virtual walkthrough if she had any issues. Around the time the second month’s payment was due, this person challenged the charges of the the first month’s rent and security deposit calling them fraudulent in her credit card statement and the money was pulled from my account. At that point, I was more than suspicious.

She stopped taking my calls as I pursued to get clarity on payment and I dropped in unannounced to find that she was illegally airbnbing the property. She installed a ring camera system and reached out to me highlighting that I was trespassing and that if she wanted her out, I would have to file an eviction.

I did some digging to realize that she had a criminal history of doing this. Like over 20 instances… I am embarrassed to say that I didn't even think to check because I thought the background check I received was reputable. She is a tenured criminal and has been three steps ahead of me all along. She changed my front locks, bullied my security system, and has a whole operation supporting this illegal STR.

5 months of no rent, attorney fees, and an official eviction later, she is still in possession of the home and I am waiting for an off duty Marshall service in my area to come back online to get her out. I have received a death threat from an unknown third party who she is involved with and have not felt comfortable checking on the property again. The listing is still up on Airbnb who refuses to get involved. They informed me that as long as the person is in possession of the property, that they can’t do. They recommended I try and meditate with the tenant. Meanwhile, this criminal is still profiting off of the property.

The damage has been done, but I was curious if this company that performed this background check could at all be held accountable even partially in making me whole. If I saw the criminal history prior, there is no way I would have proceeded.

Any advice on holding this major company accountable and getting this tenant out would be greatly appreciated. I am scared invoking her any more could lead to property damage, theft, or not so empty threats so I want to make sure I have a legal and full proof way of putting this to rest.

Thanks in advance for the time,

Alex G.

[Chris Seveney]

Quote from @Alex Grady:

I have managed a small portfolio of properties for the past 4 years. But I ran into a major issue that I am hoping to get some perspective on from you all.

TLDR: Can I sue a major corporation for failing to run a thorough background check on a criminal?

I leveraged a platform that I know for a fact all of you are familiar with in order to help find potential tenants for a long term rental. I ran into an individual who submitted a background check through the system and there were no issues whatsoever. She highlighted that she was starting at a new company and moving for the job. She provided an offer letter with what seemed to be a legitimate number and paid first month and the the security deposit. It was a small risk, but I was open to making it work. I leveraged a third party platform that just went out of business called Azibo to collect payment. After she signed the lease too, I was excited to have one less room to fill.

I never met her in person because she drove into town very late. I just gave her the door passcode and told her we could do a virtual walkthrough if she had any issues. Around the time the second month’s payment was due, this person challenged the charges of the the first month’s rent and security deposit calling them fraudulent in her credit card statement and the money was pulled from my account. At that point, I was more than suspicious.

She stopped taking my calls as I pursued to get clarity on payment and I dropped in unannounced to find that she was illegally airbnbing the property. She installed a ring camera system and reached out to me highlighting that I was trespassing and that if she wanted her out, I would have to file an eviction.

I did some digging to realize that she had a criminal history of doing this. Like over 20 instances… I am embarrassed to say that I didn't even think to check because I thought the background check I received was reputable. She is a tenured criminal and has been three steps ahead of me all along. She changed my front locks, bullied my security system, and has a whole operation supporting this illegal STR.

5 months of no rent, attorney fees, and an official eviction later, she is still in possession of the home and I am waiting for an off duty Marshall service in my area to come back online to get her out. I have received a death threat from an unknown third party who she is involved with and have not felt comfortable checking on the property again. The listing is still up on Airbnb who refuses to get involved. They informed me that as long as the person is in possession of the property, that they can’t do. They recommended I try and meditate with the tenant. Meanwhile, this criminal is still profiting off of the property.

The damage has been done, but I was curious if this company that performed this background check could at all be held accountable even partially in making me whole. If I saw the criminal history prior, there is no way I would have proceeded.

Any advice on holding this major company accountable and getting this tenant out would be greatly appreciated. I am scared invoking her any more could lead to property damage, theft, or not so empty threats so I want to make sure I have a legal and full proof way of putting this to rest.

Thanks in advance for the time,

Alex G.

 As mentioned in the other post, you will never win against any of these companies as the terms and conditions are written in a manner that they can do no wrong. This is why its important for everyone to understand there is a lot of due diligence.

Also as a sidenote, never accept credit card as a method of payment.