All Forum Posts by: Carlos Hennings

Not all background checks are the same! Many instant reports pull limited public data and often miss key records like evictions, judgments, and liens—which no longer appear on credit reports. They also don’t verify identity, making it easier for applicants to use false information.

A more thorough screening process goes beyond a quick database pull. It includes manual reviews, ID verification, and court-level research to ensure accuracy. The difference? Instant reports might be fast, but they can leave you with gaps and costly tenant risks. A detailed screening process ensures you get the full picture before handing over the keys.

Not all background checks are the same! Many instant reports pull limited public data and often miss key records like evictions, judgments, and liens—which no longer appear on credit reports. They also don’t verify identity, making it easier for applicants to use false information.

A more thorough screening process goes beyond a quick database pull. It includes manual reviews, ID verification, and court-level research to ensure accuracy. The difference? Instant reports might be fast, but they can leave you with gaps and costly tenant risks. A detailed screening process ensures you get the full picture before handing over the keys.

Cash for Keys is a method used by landlords and property managers to encourage a tenant to vacate voluntarily in exchange for a financial incentive. Instead of going through a lengthy and costly eviction process, the landlord offers the tenant a sum of money to leave the property by an agreed-upon date, often in good condition.

How It Works:

1. 1. Offer an Agreement – The landlord proposes a cash incentive if the tenant agrees to move out by a set date.
2. 2. Set Clear Terms – The tenant must leave the unit clean and undamaged, return the keys, and not cause further issues.
3. 3. Sign a Written Agreement – A Cash for Keys agreement protects both parties and ensures compliance.
4. 4. Exchange Cash for Keys – After confirming the tenant has vacated and met the conditions, the landlord hands over the agreed-upon payment.

Why Use It?

✅ Faster & Cheaper than Eviction – Evictions can take months and cost thousands in legal fees. Cash for Keys is often quicker and less expensive.
✅ Reduces Property Damage Risks – Some tenants facing eviction may cause damage out of frustration. A smooth exit can help protect the unit.
✅ Minimizes Vacancy Loss – The sooner a tenant leaves, the sooner you can relist and re-rent the property.

While not ideal, Cash for Keys is a practical solution when eviction is the alternative. It’s a business decision that can save time, money, and stress in the long run.

Fraudulent income documents are a growing issue, especially with easy access to fake pay stub and bank statement generators. 

Instead of relying on documents that can be manipulated, use an Income Verification Report that pulls 12 months of bank deposit data directly from the source—this prevents tampering and gives a clear picture of financial stability.

Your caution is valid—there are definitely red flags to dig into further before making a decision. A 685 credit score with a dismissed bankruptcy is unusual, so it's important to look beyond the credit score alone.

Here’s what to consider:

1. 1. Dismissed Bankruptcy (Not Discharged) – A dismissed bankruptcy means the case was thrown out before debts were cleared, often because the filer didn’t complete the process or didn’t qualify. This means they still owe their debts, making their financial stability uncertain.
   
2. 2. No Open Credit Accounts – With no active credit lines, their score is likely based on limited factors, such as past accounts, length of credit history, or something as simple as on-time utility or rent payments (if reported).
   
3. 3. Self-Employment & Social Security Income – While these income sources can be stable, self-employed income can fluctuate, so verifying consistent deposits over time is key. Instead of relying on pay stubs or bank statements (which can be manipulated), consider an income verification report that pulls 12 months of actual bank deposits.

Next Steps Before Deciding

✔ Verify rental history – Contact past landlords to check for payment reliability and any issues.
✔ Run a full background check – Criminal history, judgments, and liens can reveal risks that a credit score won’t.
✔ Look deeper into financial patterns – Ensure their income deposits are steady and align with what they’re reporting.

A credit score alone doesn’t tell the full story, and given the bankruptcy, closed accounts, and self-employment, extra due diligence is needed to make the best decision. 

Yes, you should still screen the individual. While their company may be covering rent, that only reduces one risk—there are still other factors to consider. A background check can uncover criminal history, past evictions, judgments, or liens, which could indicate issues beyond just financial stability.

Even if rent payments are guaranteed, the applicant will still be living in your property, so knowing their rental history and overall reliability is just as important. Screening helps protect your investment and ensures you're bringing in a responsible tenant.

If the applicant has a bank account, using a screening service with an Income Verification Report can give you a clearer picture of their financial stability. 

It tracks deposits over the past 12 months, showing average balances, current available funds, and both recurring and one-time deposits. The best part? It pulls directly from the bank, so there’s no way for the applicant to edit or manipulate the info like they could with a pay stub or bank statement.

Begin the eviction process as soon as possible—delays can make it more difficult. Once the tenant is out, strengthen your screening process to avoid similar issues in the future.

Choose a screening company that includes ID verification to confirm applicants' identities, with some now incorporating facial recognition technology for added security.

Thorough screening is key. While the program covers part of the rent, tenants must still pay their share, so verifying eviction history, and financial responsibility is crucial.

Since judgments and liens no longer appear on credit reports, use a screening service that pulls these separately to catch hidden red flags.

 Agreed. Stessa has both free and paid versions.