Landlords beware!!! Tenants have a new way to cheat.

[Nathan Gesner]

A property manager in Florida just received an application from someone using something called a "Renter's Identification Number" instead of a social security number. They've researched it and discovered this new service that helps people qualify for rentals even though they have bad credit, broken leases, history of late payments, or other negative issues on their record.

From what I can see, the applicant submits their information to the web site and pays a hefty fee. An attorney rubber stamps it to give it a modicum of legitimacy and then hands it off to a lackey referred to as a "case manager". The case manager then works on behalf of the applicant to get into a rental. When the Landlord or Property Manager questions the applicant's qualifications, the case manager throws in some legal mumbo-jumbo or an official-looking letter that says there's no risk because the applicant has been screened by the attorney. 

I personally wouldn't accept it for a minute.

Read it for yourself at Second Chance Rental Program

[Rob Cook]

LOL!  That is hilarious. Oh well, "credit repair" like anything can be a scam.  Thanks for the heads up. Hope I get to vet one of these idiots in my tenant screening someday, for fun!

[Rob Cook]

Wonder if the aggressive and supportive "Case Manager" would stand up legally, as co-signor for their "client" on the lease?  Crickets..................I thought so. LOL. This made my day Nathan.  

[Kim Meredith Hampton]

Hi Nathan,

Thanks for sharing, I saw this yesterday on one of my real estate property management feeds. Life is never boring property management!!!

[Janie Grayson]

First. I agree that this would allow some shady characters slide by. Or in. 
However, I ask you to consider the other side of this. Such as myself; single mom, full time job, good person… Covid, like many others destroyed my way of life. I use “destroy” with hesitancy as to not sound dramatic or self-pitying but there is no other word that accurately reflects my covid experience and existence after. 
my great job with a start up collapsed. The industry I work in, entertainment, shut down, no one was hiring. My fall back? Restaurant work. They closed too. I was unable to pay my car payment and feel far behind and had priorities to rent, so I lost our car. I started to drive for Uber because of the car rental program they have (rent a car thru them, pay approx $250 a week and u can use car for personal use. Uber kept us in our apartment. Just prior to covid, literally a month before I went through a divorce and family court. To pay fees and then to pay rent during covid (unfortunately I had yet to have the luxury of a savings) I maxed out the one card I had. Then a loan, another loan, then in an emergency when no bank loans were avail, I turned to the payday loans which is 257% apr no joke (borrow $1000 payback $3000). Without the ability to stay on top of bills, my credit plummeted. In addition to still being attached to ny kids fathers credit negligence, it sank further. And further. 
Now, today, due to our building being sorely neglected during covid (poor landlord, as crappy as he was, I felt badly knowing a lot of tenants just stopped paying rent at all and he suffered greatly) but our building slowly turned into just a step above .. well .. crusty water, slippery stairs, no maintenance avail, self plumbing fix when issues arose, etc etc. 

we found mold in a closet so we gave 30 days. 

However, because of my credit score which is shockingly 540, I have been unable to get approved for ANY apartment as of now. The management companies have strict guidelines and you get an immediate denial when I hope to be taken as an individual.. I can explain the poor credit. I have bank statements, check stubs, references, 1000% CLEAR background check. But the applications come back a hard no. 
if I find a rent by owner apartment, I can win them over meeting in person, my kids are teenagers but respectful and well mannered, and can get approved but because they’ve all been so screwed during covid it has a bad tenant before you, the security deposits are outrageous. Legal. But outrageous. For someone like myself anyway. I live in LA. First and last month plus a month for security deposit. For a 2 bedroom I’m looking at at least 6 grand down. For a 1 bedroom it’s about the same minus a few hundred. 
I’ve even look at studios which in a low end run $1600. Same thing. 
now while I’m prepared to pay two months rent. (Will be tough but I can do it) but I just don’t have $6000 to give AND pay rent in 10 days AND pay my sons tuition AND get gas… 

Soooo, my very long story short. The renters ID is something I’ve looked into and honestly, am seriously considering it. From what I understand is it will show I have no credit instead of a terrible score of late and non payments. I’m working to raise my score organically of course but that will take months and we are technically homeless. My kids are at friends and I stay at a friends but they have young children so the couch is in the way so I’ve slept in my car and every day I look for a place and hope to find the one manager/owner/rental agency who will take a chance on me. 
with a renters ID, no credit isn’t ideal at all but I’m hearing that renters are more likely to work with you - and some application qualifications mention that no credit will be considered with larger deposits. Where as a 540 is a no way no how. 

So all I’m saying is if there was a universal way for a landlord or renter to take their applicants based on ALL info gathered rather than just a no. Especially after we have all gone thru a really hard time and most of us are still recovering/reeling. 

I DO understand and if I were renting a place I don’t think I’d want to mess with an unsure thing either. I need a sure thing and I GET that no one wants to risk it.

Even with my good job and bank account status and references etc.   

To the landlords here… suggestions? What’s the middle ground or something people like myself can do or share or show or prove that we are worthy and we are NOT our credit history. 

Please lmk. Because my son is home from college late May and as of now, I don’t have a home. Literally. And while I can handle what comes my way, my kids deserve a place to call home. And no, their dad is a non option. 

Please help. Lmk. And please don’t suggest a co-signer - I have just a sister as family. 

Thank you!

Janie 

[Nathan Gesner]

Quote from @Janie Grayson:

I just don't buy it.

I know some people were hit hard by COVID and lost jobs. However, there was an exorbitant amount of money available to help them. Increased unemployment benefits alone ensured people were making more than if they were working. Checks were mailed directly to people's houses. Then there's the Emergency Rental Assistance Program (ERAP) that was available to just about everyone and didn't even require a loss of income! I had tenants in small-town Wyoming that worked full-time and made 3x the rent, but they still qualified for ERAP funds that paid their entire rent for an entire year or more!

There's another issue with your story that always concerns me. Your industry shut down so you had to wait tables. Then restaurants shut down. Why did you stay in an expensive market with no job? Why didn't you sell your stuff or throw it in storage, pack your bags, and hop on a Greyhound to one of the hundreds of cities across America that were wide open, affordable, and begging for employees? You could have found two full-time jobs, made a ton of money, saved up tens of thousands, and then head back to California when it opened and was affordable. I see younger people constantly complaining about the lack of jobs or how expensive housing is in their area, yet they refuse to take action to put themselves in a better position. They want what they want, when they want it, but they refuse to make any sacrifice.

There are many Landlords and Property Managers that look at the whole person. If your story were verifiable, I would definitely rent to you. I would rent you something affordable and well maintained. You could have earned $50,000+ per year, earned free rent from ERAP, and saved $20,000 - $30,000 per year while living a very comfortable life in one of the friendliest, most beautiful areas in America while waiting for the California Crazy to die down. After two years, you could move back to LA with enough money to buy a house and never suffer under a Landlord again.

America is full of opportunity, but success isn't free. You have to make smart choices, put in the effort, delay gratification, and sometimes even sacrifice.

[Elizabeth Bates]

Dear Mr. Gesner,

I live in Vermont a pretty liberal place.  But not everyone qualified for ERAP money.  I know that some people democrats think the Federal government is a source for endless money it is not.  You had to meet certain criteria.  People were looking for staff in some cities other cities were like ghost towns.  Another thing how you are going to survive until you get a check in this paradise where everyone is looking for help?  Also did you not experience restaurant closings?  I guess what I am saying is sometimes good hard-working people lose their jobs and end up in poverty.  I have a close friend who worked two jobs and made great money.  She married her husband when she was 18.  TShe lost her house and car because her husband spent all of their money chasing other women. She was afraid to leave because of his abuse.  Her and the kids ended up in a shack.  If it wasn't for a kind man who was willing to take a chance she would still be in trouble.  She has never been late on her rent or any other bills since.   People make mistakes and sometimes bad choices but as a Christian I want to show grace and mercy to people.   Because God has been so merciful to me.  Not everyone is lying or trying to use you.  Pray for wisdom because there a lot of con artist out there.  

[Ned J.]

So basically this company is getting paid a bunch of $$ by people to essentially state "we screened this tenant and all is good....rent to them"......but have no financial liability if they are not good tenants etc etc. They have ZERO accountability if the tenant stops paying rent etc etc.

Sound legit... why would they possibly lie about a client?

If that company wants to act as some legally bound co-signer, then maybe.... but if their skin in the game stops at the screening phase, then hell no. 

I'll stick with my owner screening. 

[Nathan McBride]

Quote from @Nathan Gesner:

A property manager in Florida just received an application from someone using something called a "Renter's Identification Number" instead of a social security number. They've researched it and discovered this new service that helps people qualify for rentals even though they have bad credit, broken leases, history of late payments, or other negative issues on their record.

From what I can see, the applicant submits their information to the web site and pays a hefty fee. An attorney rubber stamps it to give it a modicum of legitimacy and then hands it off to a lackey referred to as a "case manager". The case manager then works on behalf of the applicant to get into a rental. When the Landlord or Property Manager questions the applicant's qualifications, the case manager throws in some legal mumbo-jumbo or an official-looking letter that says there's no risk because the applicant has been screened by the attorney. 

I personally wouldn't accept it for a minute.

Read it for yourself at Second Chance Rental Program

I had never heard of this until this morning when I was weeding out Google Ad keywords of all places.  We inadvertently paid a couple dollars for some clicks on "second chance rental" searches.  Glad you posted the link so I could educate myself.

We try to work with folks as best we can, depending on the situation, but the quickest way to get an application denied is to lie on the application or pre-screening questions.  It's honestly pretty amazing how brazen some folks can be.

We are upfront with our requirements and screening process, and we absolutely keep application fees if denied due to undisclosed background/credit/eviction issues.

[Mary Smith]

Thanks so much for sharing @Nathan Gesner this was really helpful!

[Jacob MacIsaac]

Quote from @Janie Grayson:

First. I agree that this would allow some shady characters slide by. Or in. 
However, I ask you to consider the other side of this. Such as myself; single mom, full time job, good person… Covid, like many others destroyed my way of life. I use “destroy” with hesitancy as to not sound dramatic or self-pitying but there is no other word that accurately reflects my covid experience and existence after. 
my great job with a start up collapsed. The industry I work in, entertainment, shut down, no one was hiring. My fall back? Restaurant work. They closed too. I was unable to pay my car payment and feel far behind and had priorities to rent, so I lost our car. I started to drive for Uber because of the car rental program they have (rent a car thru them, pay approx $250 a week and u can use car for personal use. Uber kept us in our apartment. Just prior to covid, literally a month before I went through a divorce and family court. To pay fees and then to pay rent during covid (unfortunately I had yet to have the luxury of a savings) I maxed out the one card I had. Then a loan, another loan, then in an emergency when no bank loans were avail, I turned to the payday loans which is 257% apr no joke (borrow $1000 payback $3000). Without the ability to stay on top of bills, my credit plummeted. In addition to still being attached to ny kids fathers credit negligence, it sank further. And further. 
Now, today, due to our building being sorely neglected during covid (poor landlord, as crappy as he was, I felt badly knowing a lot of tenants just stopped paying rent at all and he suffered greatly) but our building slowly turned into just a step above .. well .. crusty water, slippery stairs, no maintenance avail, self plumbing fix when issues arose, etc etc. 

we found mold in a closet so we gave 30 days. 

However, because of my credit score which is shockingly 540, I have been unable to get approved for ANY apartment as of now. The management companies have strict guidelines and you get an immediate denial when I hope to be taken as an individual.. I can explain the poor credit. I have bank statements, check stubs, references, 1000% CLEAR background check. But the applications come back a hard no. 
if I find a rent by owner apartment, I can win them over meeting in person, my kids are teenagers but respectful and well mannered, and can get approved but because they’ve all been so screwed during covid it has a bad tenant before you, the security deposits are outrageous. Legal. But outrageous. For someone like myself anyway. I live in LA. First and last month plus a month for security deposit. For a 2 bedroom I’m looking at at least 6 grand down. For a 1 bedroom it’s about the same minus a few hundred. 
I’ve even look at studios which in a low end run $1600. Same thing. 
now while I’m prepared to pay two months rent. (Will be tough but I can do it) but I just don’t have $6000 to give AND pay rent in 10 days AND pay my sons tuition AND get gas… 

Soooo, my very long story short. The renters ID is something I’ve looked into and honestly, am seriously considering it. From what I understand is it will show I have no credit instead of a terrible score of late and non payments. I’m working to raise my score organically of course but that will take months and we are technically homeless. My kids are at friends and I stay at a friends but they have young children so the couch is in the way so I’ve slept in my car and every day I look for a place and hope to find the one manager/owner/rental agency who will take a chance on me. 
with a renters ID, no credit isn’t ideal at all but I’m hearing that renters are more likely to work with you - and some application qualifications mention that no credit will be considered with larger deposits. Where as a 540 is a no way no how. 

So all I’m saying is if there was a universal way for a landlord or renter to take their applicants based on ALL info gathered rather than just a no. Especially after we have all gone thru a really hard time and most of us are still recovering/reeling. 

I DO understand and if I were renting a place I don’t think I’d want to mess with an unsure thing either. I need a sure thing and I GET that no one wants to risk it.

Even with my good job and bank account status and references etc.   

To the landlords here… suggestions? What’s the middle ground or something people like myself can do or share or show or prove that we are worthy and we are NOT our credit history. 

Please lmk. Because my son is home from college late May and as of now, I don’t have a home. Literally. And while I can handle what comes my way, my kids deserve a place to call home. And no, their dad is a non option. 

Please help. Lmk. And please don’t suggest a co-signer - I have just a sister as family. 

Thank you!

Janie 

I could be mistaken but I believe in CA you can only charge first month plus a deposit, or first and last month, but not both.

[Darian Hunter]

Stay away if you want to be part of an identity theft ring. Called these 2 places Secondchanceapartments.com or ways2rent thety are somehow related and either same owner or 2 business owners working together. What's the solution? They give you a fake 9 digit number that looks like a ssn. Who it belongs to ? No idea. They call is a RIN ! people there no such thing as a RIN. or any kinda of rental id number. Here's an interesting read about this. Sorry but not looking for feds knocking at my door when I lay my head to sleep !! https://risk.lexisnexis.com/insights-resources/article/synthetic-identity-fraud