Tenant identity fraud

[Dheeraj Raj]

Tenant toured my property and I had her submit the application through Zillow. The credit report, background check and everything came clean. Was also able to verify employment with employer, contacted previous landlord of the tenant and everything was smooth. So went ahead and signed the lease. We met to hand over the keys. I tried to validate everything via a conversation and found she lied about the occupants. She tried to cover up though and that was a red flag for me. I had her send me her driving license. To my astonishment, the photo in the ID did not match, moreover the height mentioned in the ID was no match at all. It’s a clear case of identity fraud. When i confronted her, she would not accept. She instead argues that she is going to involve her lawyer for racial discrimination, is she kidding me?

She submitted move-in costs and prorated rent via Zillow payment. It usually takes couple of days to process. I get an email next day from Zillow that the tenant account was flagged for not adhering to security protocols and the payment was declined to process. So now i dont have security deposit and prorated rent which are due on day one of the lease. It’s a total disaster for me now. But since the lease is already signed, What are my options? Can i file police report for identity fraud? Will also need to hire an attorney.

Agree i should have opted for a property manager to begin with, so lets not go. I am more keen on the next steps.

[Adam Martin]

I am assuming by your post that the lease is signed but the tenant does not have keys yet, keep it that way.  Yes you have a signed lease but that lease also says that move in funds are paid but they are not so they are in violation.  There was also clear fraud on the application front which is another strike to back out.  Keep showing and ignore her threats and cease communication.  People threaten to sue all the time but unless you hear it from a lawyer it is all smoke and do you really think they would win even if they did.  Keep moving forward and ignore it.

That said there were mistakes made that it seems you are learning from.  Move in funds need to be made in certified funds through a certified or cashiers check, without this there is no move in or keys.  I have also accepted a wire from a tenant who did not have a local bank where they could get a certified check.  I also have them send me a copy of their drivers license after the background check so I can verify their info before the signing.  All said though you dodged a bullet and overall got a far cheaper lesson in screening and move in funds than others have.  

I will disagree with the last part of your post though on hiring a property manager which no doubt you are going to get suggestions anyway you need one.  Nobody is perfect starting out but really this isn't that hard especially if it is local and you don't have many properties.  Keep your head up and keep moving forward and you will do great.  While they work out great for some people nobody cares about your money like you do so don't let one setback scare you off.