Did you end up joining the program? 

Networking is crucial, so consider joining local real estate investment groups, attending meetups, or participating in online forums like BiggerPockets.

It's an important distinction to make.You're right that passing on legitimate increased costs to customers is a normal business practice.

Many guru's have introduced REI to people who have made legitimate millions, who might have otherwise been stuck in a much lesser life.

Good luck to you, James, because it does sound interesting, and I hope to learn from you in the future.James--you'd be welcome to join our Youngstown (Boardman) meetup and see if you can get more feedback there.

Learn as much as you can, join local real estate groups, and maybe find a mentor.

Join the local Apartment Association as they are usually a great source of networking with other landlords and professionals in the area. 

I suggest joining Facebook investing groups in your market and looking into meetups in your area (meetup.com is a great place to start).

Assuming it was still in process.How do property managers handle applicants that legitimately had their identity stolen?

Visit and Join Metro Detroit Real Estate Investors Group  theres some people on there that offer that service.