All Forum Posts by: Account Closed

@Account Closed employment can be verified multiple ways:

1) Many areas have several large employers and you get to know what their paystubs look like. In Detroit area, the auto-related companies are big employers.
--We had an applicant try to fake a Ford Motor Co paystub and it looked like they had a real paystub they tried to model there's on. But, their fake logo was terrible and the fonts didn't match.

2) At least 80% of employers not direct deposit only. So, you can get a bank statement that matches the deposit account number on the paystub to verify the payroll deposit.
--Haven't seen many fake bank statements.

3) You can call the employer to verify, but the bigger they are, the harder this is. Most Fortune 500 companies now use a 3rd party verification service that charges the employee and requires them to get a code they can then give to the PMC to do the employment verification. Otherwise, an employer is legally not allowed to share worker information, so we have a Verification of Employment (VOE) form we send with applicant's authorization signature.

The biggest challenge/frustration is, all of this takes more time and effort - which costs a PMC more payroll!

@Account Closed have to agree with @Adam Bartomeo, that the "fire the current PMC and find a new one" is the easy, knee-jerk reaction/advice. 

Before firing your current PMC, do recommend going over:

1) Their screening process and how they've adapted to all the application fraud that's dramatically increased since COVID. You may also want to go over the app docs they obtained and their screening of the 3 evicted tenants.
--You can easily buy fake paystubs & W-2s off the internet, that are generated by Quickbooks, so they look 100% real. How are they screening for these?

2) DO NOT GET INVOLVED WITH THE TENANTS! Recommend you discuss what your PMC does when a tenant doesn't pay rent on time. When do they send an Eviction Notice to start the "Clock"? When and how many calls do they make? Do they offer Cash-For-Keys or Payment Plans? What do those processes look like?
--If you get involved with the tenants, you are undermining your PMC and you might as well DIY manage. 

If you think about the above, why didn't you do all this as part of YOUR SCREENING of a PMC BEFORE hiring them! So, how much of this is really your fault?

BTW: don't feel too bad, as many owners do a poor job of screening PMCs before hiring one - except of course, focusing on the lowest price:)

COMMENT: If PMCs screened tenants the same way most owners screen PMCs...

I don't agree with most that have posted here. There has been a drastic increase in evictions in the past two years. Our evictions went from 2 a year to 24 a year and we are now around 12 a year. Can anyone that has posted here guess why there has been an increase? Probably not since most are not fully engaged in property management. 

Over the last four years we have been raising rents which has been fine but about two years ago inflation got out of control. Couple the two together and you have a receipt for tenants that cannot afford to live.

As for trying to collect, you should ALWAY put them in collections for two reasons. 1. A warning to anyone that is going to allow them to rent and give credit. 2. There is a chance that you will get some money. Suggesting to do nothing is irresponsible!

This doesn't merely apply to your situation but litigation more generally..... Rarely does it make sense to file a claim where a monetary collection objective exists unless there's insurance proceeds potentially waiting for you at the end of the tunnel. Here, it seems the fact pattern is in your favor but what is the best case scenario? A judgment against a former tenant who likely has terrible financials based on the limited information you shared. The judgment will most likely be worth as much as the paper its printed on and all you will have to show for it is a legal bill you will be paying your attorney. Best to invest the money you would spend on pursuing these claims on better management/tenant screening or building improvements that may attract better qualified tenants.

@Account Closed

Most importantly, I would say that you need to tighten up tenant screening. I would speak to your property manager and go over their screening process with them. There has been a lot of tenant fraud since COVID, with people committing identity theft and falsifying documentation. I might also increase the requirements tenants must meet to be approved. Take a more in-depth look into their employment and income verification. Additional forms of ID, etc.

In my experience, going after lost rent and repair expenses is normally a waste of time. My property managers will send the bad debt to a collection agency, but the chances of anything happening are very slim. I might pursue the tenant if they have solid employment. What does your manager suggest?