Two warnings for the Chicago market! Section 8 lawsuits and fake tenants ID's

[Henry Lazerow]

Recently over 165 lawsuits were filed in Chicago against small landlords who declined Section 8 tenants. These are being issued by local "nonprofits" who are mass emailing landlords pretending to be section 8 tenants. If any prospective tenant emails you asking if accept section 8 you cannot say no. You can decline them off their credit, background and for not having 2 past positive references. I like going off references regardless of market or section 8 tenant, it really helps us avoid the trouble makers. North side Chicago I have never even had to give a tenant a late fee and none of the tenants I have placed for clients have ever given them issues either, properly picked people pay like clockwork on autopay. There is enough demand on the north side you should never have a tenant issue if you do the correct due diligence.

Secondly, lots of fake applicants lately. People are buying stolen identities off facebook groups and using that info to apply as someone who has good credit and making fake paystubs. One way we fight this is with photo verification pre-lease signing and not approving renters who don't view the place in person, our credit underwriting software also flags apps that have a high likelihood of fraud. We also dig into their paystubs on a deep level. @Mark Ainley sent out an email in regards to these fraudulent tenant apps recently and they also have some great strategies they use to prevent it. 

[Greg Scott]

I was curious about the Michigan law so did a little poking around.  I found this great article.  https://logicalpm.com/new-michigan-section-8-laws-what-can-l...

As the article points out, these sorts of laws often result in the opposite of the intended effect!  When will the government wonks realize it is hard to force the free market to solve a problem they helped create?

Kudos to @Drew Sygit for this article.