All Forum Posts by: MAR DOUDAN

I have learned a lot from the replies that I have recieved on biggerpockets.com It's a very informative website and a great place to meet people and share information. Thanks for your help. Now I am ready to go buy some HUD foreclosures and make some real money.

She probably is very friendly and helpful. However, it costs a renter time and money to look for a home as well plus add the expense of moving, etc. Who pays for all that? To me the comment is narcissistic and frankly reinforces my concerns. Although, it would be helpful if she could provide some verifiable data about how many applications she gets when she rents a property, what percentage of evictions vs good stable renters she has had. This would be helpful data. 

The current Rental/Lease Application process and fee is a recent development, it wasn't always a requirement. The problems that prompted it's creation was the mishandling of personal information i.e. Social Security numbers resulting in the number of identity thefts associated with that process. The Credit Reporting agencies like Experian, Transunion, and Equifax tightened the requirements to allow access to personal credit reports, things like having to have a commercial business address as opposed to working out of a bedroom or a garage and other reasons. That put information access restrictions on many landlords, hence forcing many of them to acquire a property manager company or RE Agent. This increase of Agents and lack of industry management has created a boondoggle in the lease and rental process. It has also created a very easy way to make a lot of money for Agencies that want to take advantage of the system. And many are. All you have to do is the math. Sure I can find alternate ways to lease like CL etc. But I am also going to continue to expose the corruption that I see developing. I have contacted the Florida Consumer Affairs about this situation. Let's see what can be changed to make this an equitable process for all involved. I'm sure there is a solution. The main thing is to shed light on it and make people aware of what is actually going on.

Yeah I'm funny... here is another laugh for you. I emailed a RE Agent this morning that I have been in contact with for the last few months helping me find a home. I had to email him twice the same questions, because he didn't reply to my first email. This is what I asked him: Can you tell me what are the requirements to lease a home? I see that there is an application process. What is required and what is the determining factors like Credit Score range, income verification, letters of recommendation, etc? What is the application fee cost? How long does the process take? 

His reply was: "Call me to discuss xxx-xxx-xxx. Thanks." 

Ok, I called him - he said that "I have to be careful what I say (wrote) in an email because he could lose his license". He went on to say that the application process is challenging, that there is no guarantee that you will get a home that I apply for. That undoubtedly, I would have to make multiple applications. That some homes can get as many as 50 and more applications. So it's a gamble. I had to pry this information out of him. 

My point here is, that when an industry that you are doing business with doesn't want to offer transparancy of what they are providing, then something is fishy. It also supports my claim that the "Rental/Lease Application" process that has been crafted to protect owners, has been turned into a cash cow for Agents. And is being milked for every penny...

It's a shame, that a few bad Landlords and a few bad Tenants make the entire rental industry bad...

"Lets just say I am VERY tempted to charge a $50 fee per person JUST to get interested only parties!" This is the type of business practice that I am trying to bring to light. Application fees created on a whim and not on principle. If you don't like being a Landlord find a different job that doesn't involve people.

A Lease is good protection for both parties. I wouldn't lease without one as long as it isn't owner slanted and most are. I'll bet that your 14 page lease is all about your rights. and very little about the tenant's. 

I'm glad that you took the time to read it. At least, you got 10%.

Cheers!

I'm a renter and I see the rental application process very differently than what the Agents tell you. The Agents that I have contacted, tell you to go to their website fill out an online application, pay the application fees online… etc. I think we all know since the housing bubble burst, the rental market has skyrocketed, hence monthly rental prices are overinflated due to the demand. It's ridiculous! and then on top of that the application fee is unethical! Why should a renter have to pay for something that the Agent wants? PlUS the property management fee included in the rent? – it doesn't make sense… It would be like me telling the Agent that he has to discount the monthly rent because I'm an outstanding renter! I'm never late on my payments, I don't have any criminal background, etc. The other thing that the Agent doesn't tell you is what your chance of getting the property is - This is like Gambling - it's like rolling the dice that you will get the home you are applying for. Goodbye $150.00 or more of application fees. Do you know how many Agents have the same MLS home for rent? MUCHO - it's a SCAM - Legal yes Ethical NO!!!

I can provide the proof myself. It’s very easy to obtain a credit report and a criminal background investigation, eviction notices etc. I can get that information and give copies to all the homes I apply for. Why should I be forced to pay for something that I may not get anything for? There is no guaranty that I will get the home if I apply. The Agent can tell me anything he or she wants without providing anything to back it up, even if the Agent doesn’t like the way I tie my shoes… Why, because there is very little Anti-Discrimination Laws that protects the rental consumer. I’m sorry but Agents have found a way to make a quick buck from innocent people.

LOL – Every digital research tool is prone to errors and mistakes. What is most disheartening is that the real estate agencies are taking advantage of renters by charging much more than they are paying for these credit reports and making a sizable profit from these application fees i.e. A Real Estate Agent may get 50 (or more) applications for one home i.e. : 50 x $50.00 = $2,500.00 – $1,147.50 (Average tenant screening package) = $1,352.50 to the Real Estate Agency. Then if you multiply this times 50 homes per year = $67,625.00 in money that the Real Estate Agency has made on top of it’s property management fees. It’s a money making scam! The rules are Agency slanted! I hope that the people renting homes will wise up and report these unfair practices that the GREEDY real estate market has imposed.

I’d like to add some other variables to the Renter’s point of view. Every time a personal credit report is requested it lowers their credit score. That’s why Transunion created SmartMove. If a renter creates a Transunion mysmartmove account, which is free for renters, then this account will prevent a renter from having his or her credit score lowered by Agents or Owners requesting his or her credit history. It will also keep your Social Security number private. Besides when I lease or rent a house, I’m not requesting credit am I? So why does the the Agent need my credit report… An eviction report is all that is needed and that is a very inexpensive report to obtain.

• People can have bad credit and still pay their rent every month.
• People can have past criminal records and still pay their rent every month.
• People with a prior eviction could still pay their rent every month.
• Plus, an eviction report is the only report that’s specific to the rental industry.

To me, requesting a Credit Report to Lease a home is just a scam to make extra money for the Agent. The housing market is trying to climb out of a hole and finding it very difficult. What happened to a signed Lease, a handshake, a person’s word? Today everything is based on “Nickel and Dimed” strategy. There are ulterior motives behind this credit report request as well. The Agents are prying into your personal financial history to see if you may be a candidate to buy a home, or to see if they can “up-sell” you into a more expensive rental. I see many low priced rental homes listed but when you call the agent, that home is rented, and of course they have more that are higher priced. My advice is get a Transunion or Experian renter’s account - these are free and don’t require you to give your Social Security number to Agents or owners and if the Agent insists on needing a credit report, ask why, Don’t give your Social Security info to anybody unless they can prove how it will be protected, never put your Social Security number in a risk for compromise. You don’t know who has access to this information. There is just to much identity theft happening today. This information is free advice, copy it share it, put an end to this.