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Updated over 8 years ago, 09/05/2016
- full-time CPA & part-time RE Investor
- Colorado Springs, CO
- 46
- Votes |
- 102
- Posts
Why Do Applicants Lie About Income? Frustrated vent!
I know this comes with the territory, but it is frustrating!
I had a very nice couple with a young daughter come look at my nicest rental home (4,300sq ft with $2,800 rent). They were a little young, but both were college-educated, well-spoken and very confident they would pass the background and income verification check. I told them while chatting with them, that I made no exceptions for my rule that income must be AT LEAST 3x monthly rent. They said that wouldn't be a problem.
I signed them up on mysmartmove.com and then the games started. First, she completed the application, when I told them I needed him to do so (she is a stay at home Mom) because he was the sole employed in the family. Then he completes the application and his income is way low and it says he is self-employed.
I questioned them about the whole mess and they say the information is wrong and somehow get the report changed to show more income as an employee. Then they email me a letter from his employer, stating he is their employee since February, 2016. I day, "great" and tell them to send me a bank statement showing the payroll deposits. They say, "well he doesn't get paid by his employer, Instead clients pay him directly, so you will not see payroll deposits." What the heck?!?
I have had possible tenants lie to me about all kinds of background stuff, but I really had these people pegged as coming back with flying colors. You never can tell.
Rant over - on to the next applicant tomorrow!