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Landlord Beware! - the importance of tenancy/reference checks

Sherilynn

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We have a lovely half-duplex for rent to own in SW Edmonton. I met a couple yesterday who would love to rent the property and enter an option contract as soon as they have the required minimum option payment.

They completed the application in great detail, including volunteering the fact they were being evicted due to complaints about their dog (which wouldn't be an issue in our property). They supplied their credit reports, his employment contract, copies of their ID, etc. Everything looked good on paper. (Although we are still awaiting copies his most recent paystubs and their NOA's, both requirements for our rent to own tenants.)

But 'this ain't my first rodeo,' and I don't blindly rely on calling the phone numbers provided on the application form. (Google can be a landlords best friend.)

By calling the true number of the employer, I learned this person has never been a district manager with the company, and the income he stated on his fake employment contract is substantially more than what the company actually pays.

And by calling the true number of the landlord, I discovered his eviction was due to a huge amount of rental arrears rather than issues with his dogs.

I'm guessing his pre-authorized debit form was fake too.

Moral of the story: there are some very unscrupulous people out there who can create official-looking documents, so do your own research rather than relying solely on what the applicant provides.

Safety net: we always perform civil judgment searches at the Provincial Courthouse to see if tenants have any previous judgments against them. This search reveals evictions the applicant may have neglected to mention.

FYI, their names are Steven K. and Amber S.
 

adriano

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What website do you go to when you do civil judgement searches in Alberta?
 

Sherilynn

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Haven't been able to do an online search in Alberta yet. Must visit a Provincial Courthouse (or QB) and ask for it. There seems to be only one or two staff in many courthouses who know what we're requesting, but we always manage to get it. Costs $10 per person.

I believe other provinces have online searches. I hope Alberta will soon.
 

RE123RE

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We have a lovely half-duplex for rent to own in SW Edmonton. I met a couple yesterday who would love to rent the property and enter an option contract as soon as they have the required minimum option payment.

They completed the application in great detail, including volunteering the fact they were being evicted due to complaints about their dog (which wouldn't be an issue in our property). They supplied their credit reports, his employment contract, copies of their ID, etc. Everything looked good on paper. (Although we are still awaiting copies his most recent paystubs and their NOA's, both requirements for our rent to own tenants.)

But 'this ain't my first rodeo,' and I don't blindly rely on calling the phone numbers provided on the application form. (Google can be a landlords best friend.)

By calling the true number of the employer, I learned this person has never been a district manager with the company, and the income he stated on his fake employment contract is substantially more than what the company actually pays.

And by calling the true number of the landlord, I discovered his eviction was due to a huge amount of rental arrears rather than issues with his dogs.

I'm guessing his pre-authorized debit form was fake too.

Moral of the story: there are some very unscrupulous people out there who can create official-looking documents, so do your own research rather than relying solely on what the applicant provides.

Safety net: we always perform civil judgment searches at the Provincial Courthouse to see if tenants have any previous judgments against them. This search reveals evictions the applicant may have neglected to mention.

FYI, their names are Steven K. and Amber S.
Good example and reminder.
They sound like criminals. Shouldn't we, as landlords, report such xxxxbags to the police/authorities?
Thanks
 

Sherilynn

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Good example and reminder.
They sound like criminals. Shouldn't we, as landlords, report such xxxxbags to the police/authorities?
Thanks

I've been wondering that myself. Perhaps it's worth a call. The problem is these people have my contact information and know where one of my properties is. That's an uncomfortable feeling.
 

kfort

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Perhaps the bank with logo at the top of their forged auto debit form would be interested in this information
 

Sherilynn

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I received his paystub a moment ago. He didn't even get the company name correct (forgot "Inc."), and several letters that should have been capitalized were not. I called the location listed on the paystub and they had never heard of him, so not only is he not a district manager, but also he isn't an employee. Still, it looked legit enough to fool people who weren't already suspicious.

I called the Edmonton Police, and they said if he is not trying to use another person's identity or banking information, then it isn't something they would be able to investigate.

Oh, and the officer who took my call advised I should be careful how I proceed with him. ;)

So again, landlord beware.
 

Sherilynn

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Speaking of arts and crafts... once I enlarged the photo of the paystub, I could see it said "canadapaystubs.com" and "watermarks will be removed in final copy."

Check out this link: http://www.canadapaystubs.com/

He used that site to create a professional-looking paystub; except without paying for a subscription to the site it showed the "watermarks..." phrase indicating it was a draft.
 

SokalskiT

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Wow the lengths people go to to scam. Good thing your spidy senses are at peak performance
 

Sherilynn

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To paraphrase what my Dad always says about my Mom: I'm smarter than the average bear. ;)

This is why I love real estate investing...forever changing and always something to learn.
 

Marnie

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Thanks for sharing this valuable lesson Sherilynn. It serves as a great reminder to me and I'm sure countless others. Thankfully this was caught well in advance of you going too far down the road and wasting precious time with these folks.
 

Sherilynn

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Yes, I only wish there was a way to warn every other landlord.

Sad how many people who deserve a chance are homeless and people like this are able to scam their way into lovely (and free) accommodations.
 

SokalskiT

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You are warning other landlords to be more diligent because I would of never thought of that. Thanks for sharing
 

Thomas6

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Could you also report this to Rentcheck to warn other landlords?
 

Sherilynn

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Due to privacy laws, landlords must have a tenant's permission before posting information online. Since these were applicants rather than tenants, we had not yet reached the point where they signed a "release of information."

That brings up a good point, however. It has become a standard part of our lease to include a release of information so that we may a post a tenant's payment history on landlord sites. If a tenant is unwilling to sign a release, then I am unwilling to release keys. Here is a link to the form Tenant Verification Services uses: https://www.tenantverification.ca/member-getform-Notice_To_Tenant_for_CAN_Landlords.pdf

And here is a link to the "Landlord Credit Bureau." This is where TVS posts reports. Please note: you must have the last 4 digits of a tenant's SIN to search his history on this site.
 
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