Tenant wants to supply her own credit check

[Nicola]

We have a prospective tenant who looks good on the surface. However, she will not consent to a credit check, as she is afraid numerous inquiries will negatively affect her credit (which is true).



She has supplied a copy of one she obtained for herself (it looks good) but of course, it is just a copy, so I can't be 100% certain it is genuine.



References check out.



What would you do??



thanks!

Nicola

 

[invst4profit]

Landlords need to be aware that the credit report a individual obtains on their own does not include all the personal details that a proper credit report includes.

I often have applicants not wanting to provide their personal information, SI#, or wishing to provide their own credit report. I assume they are hiding something at that point. I explain that it is necessary that I complete a through screening including my own credit check and that if they prefer I do not I fully understand.

Their application is then tossed in the garbage.



Landlords in Ontario can not afford to leave anything to chance.

 

[Rickson9]

[quote user=Nicola] What would you do??




I would do what Greg suggested.

 

[MosaicRentals]

And I am on the other side...



I can appreciate why an applicant may be reluctant to agree to a credit check. Each inquiry drops your credit score and this can impact any major purchase you may have planned. Where if they provide you with their own, you get the information necessary to make a reasonable decision and they do not lower their credit score. Credit checks are over rated in MHO.

 

[Alvaro Sanchez]

Credit checks are part of the screening process and you should get permission to perform them.

 

[invst4profit]

The hit on ones credit score is negligible and quickly corrects itself. Refusing to provide a SI# to a landlord goes much deeper than simply wanting to protect their credit. It indicates lack of trust, possible deception and is denying a business person the information needed to properly protect themselves in regards to collections in the future.



Proper due diligence is always stressed in purchasing a property and more than ever extends to screening of tenants. A landlord has only one opportunity in Ontario to protect their investment. Once a landlord allows a tenant into their property in Ontario they in effect give up their rights to control of that investment. Keeping a bad tenant out is easy compared to getting rid of one once they occupy the property. I always prefer to error on the side of caution and in screening reject any applicant not willing to provide every piece of information I require.

Applicants not willing to provide authorisation to do credit checks is a major red flag due to the fact that the majority of professional landlords now require it.



It's not just about the credit check.

 

[Nicola]

Thanks everyone. I agree that I should have the right to screen someone who is about to rent my valuable asset...



I am aware that credit checks are not the only thing, but a refusal could possibly raise a red flag.



Also, I do realize I need permission to do the check, which is why I haven't done it myself.



I think, in any case, it would not be a promising start to the landlord-tenant relationship if they are not willing to provide such information. ("Trust but verify"!!)



Thanks again for the feedback!

 

[MosaicRentals]

Greg, I agree if they refuse to provide their SIN number I would put their application to the bottom of the pile.

Also, taking into consideration the laws in Ontario I may have a different view about credit checks.

 

[Alvaro Sanchez]

Please note that SIN numbers are optional on rental applications and candidates are not require to provide one (By law). There only a few exceptions for very specific organizations (Landlords is not one of them).



In our rentals applications, the SIN number is optional. Having the SIN number increases the acuracy of the search and the time that takes to get it. With the number I can pull the credit check in minutes vs not having one that it could take a few days. All these is explain to them and I have done checks using both cases.

 

[invst4profit]

Corporate landlords will not rent to any applicant unwilling to provide their SI#. Do they know something others don't.



I have had many applicants that have questioned or refused to provide their SI# over the years. I explain that providing their SI# is not optional if they wish to rent from me. Having it insures I get their proper Credit report (not someone with the same or similar name) and I inform them I use it to pursue criminal tenants through small claims court. If they still refuse and walk away I know I do not want them as tenants.



The funny thing is that in almost every case where they do decide to provide their SI# the first thing they do is start making excuses as to why their credit score is so poor.

Very rarely have any applicants that initially refused to provide their SI# passed my screening but it is not always due to a poor credit score.

The refusal to provide all the information a landlord requires is often a indication of other negative personality traits not conducive to being a ideal tenant. They often have underlying hostilities to those in positions of authority. Some just hate landlords.



Every thing a applicant says or doesn't say, every action, every piece of information they do or don't provide are all part of what landlords consider in screening applicants. They have only one opportunity to impress me otherwise I move on to the next applicant.

 

[Alvaro Sanchez]

There are quite a few organizations that ask for SIN (including some recent ones such insurance companies) Yet, you are not obligated to provide the SIN and you can report them to the Privacy Commissioner of Canada.



For more information about privacy and your SIN, call toll free 1-800-282-1376, or write:

The Office of the Privacy Commissioner of Canada

112 Kent Street

Ottawa, ON

K1A 1H3


http://www.priv.gc.ca/resource/fs-fi/02_05_d_02_e.asp



Extract:

"This means that unless an organization can demonstrate that your SIN is required by law, or that no alternative identifier would suffice to complete the transaction, you cannot be denied a product or service on the grounds of your refusal to provide your SIN.

If you disagree with a request for your SIN made by an organization that is subject to the PIPEDA, you can complain to the Privacy Commissioner of Canada, who will investigate the complaint."





http://www.servicecanada.gc.ca/eng/sin/protect/provide.shtml



Also note that making it a mandatory requirement in your rental application might be interpreted as discrimination so just because someone is doing it, it does not make it right.

 

[invst4profit]

You are mistaken in your interpretation of the Human Rights Act in regards to a landlords rights in rejecting a applicant that has refused to provide a SI#. To my knowledge there is no case history to show a successful challenge involving a landlord having rejected a applicant for refusing to provide it.

In addition it is common knowledge that Tenant Activists have tried for years to prevent the requirement if SI# on rental application forms and have been unsuccessful with both the OHRC and the government.

The Ontario RTA and LTB do not have any legislation against insisting on applicants providing their SI# as a condition of acceptance.



The information a SI# provides regarding the identity of the owner can not be used to discriminate (such as in the case of new immigrants) but legally if you do not provide your SI# as a landlord I have no obligation to consider your application.



Applicants will always have the right to refuse to provide their SI# but if they do their choices of rental accommodation will be increasingly limited. They will not be renting from me or any corporate landlord any time soon that is certain.

 

[Alvaro Sanchez]

As mentioned before credit checks can be done with or without SIN numbers. Having the SIN speeds the process and accuracy. So going back to original post, you should get permission to perform them and do them as part of your screening process.

 

[invst4profit]

Refusing to provide a SI# isn't simply about my ability to do a credit check the filling out of the application is the first test applicants must pass. Legible writing, spelling, sentence structure and providing all information required is all being scrutinised in regards to their potential as possible tenant material.



Applicants that refuse to provide all information as required tells me more about there potential as tenants than those that do. I have no problem with applicants refusing to give personal info it makes my screening process much easier and faster. Much like the ones that early on state "I know my rights" or "you will be guaranteed my rent check directly from welfare" they are tossed in the circular file without wasting any more of my time.

 

[ChristinePell]

As I agree with all the sentiments here and I too had this happen to me with my latest tenants. Due diligence is the key. On the aforementioned tenants I did a court house search (of public record- no permission needed ) and found a "claim of foreclosure & judgement" when asked she explained result of a divorce.....which also explained her credit -and why she was reluctant to give me permission to do a search if she was to be denied the lease. She did state she would give me permission if I selected her. All her references checked out, her income supported the DTS ratio, and there are 2 incomes on the lease. Her and her boyfriend will be moving in April 1.

In my days as a renter, my credit score wasn't pristine and I would be reluctant to give out my personal info to just anyone searching my credit. I can understand management companies requiring the credit info-and as a tenant you feel as though a company seems more "legit" and not going to run off with your personal info- but I'm not a company (....yet) I'm a landlord. Until I have a management company, I will continue to do as above.

Christine

 

[terri]

I think that potential tenants that are together, responsible, organized and prepared enough to show up with their own credit report are like you showing up at the bank with your investor binder. I understand not wanting to have my beacon score effected. If you are concerned that the info is false then ask to see supporting documentation like credit card statements. Don't turn away a great potential tenant simply because they are smart enough and professional enough to be concerned with their credit score.

 

[invst4profit]

Professional tenants (criminals) are very likely to show up with their own credit report and are usually slick enough to convince most landlords that they are the salt of the earth, reliable, upstanding socially conscientious and morally just to the point of being bitterly sweet.

Never trust, always insist on doing your own report.



Landlords need to understand that a free credit report that a individual gets on line does not contain the information a landlord requires nor can it be confirmed that it is even real. It often does not even contain the actual credit score itself let alone the records of creditors or the occurrences of 30, 60 and 90 day late. A individuals free credit score is useless.

Landlords need to be certain the credit report is not a forgery and applies to the individual in question. No legitimate business is going to provide any money, credit or service to a stranger that walks in off of the street with there own credit report in hand. Try getting a car or bank loan that way. We need to be professional about the operation of our business involving our asset worth hundreds of thousands of dollars being placed in the hands of strangers. Why should we care if a credit search causes a minor blip on a individuals credit report.



When dealing with a applicant refusing to provide a SIN tell them you insist on doing your own credit search. This way you will find out if the SIN is the issue or in fact it is a poor credit score that they fear. If you are not comfortable insisting on a SIN let it slide but insist on authorisation to do your own credit check. There is very little value in a "potentially good applicant" when compared to a bad tenant that can destroy your business.

We are either mom and pop or professional, take your pick.

 

[lintstuffs]

Great discussion going on here. There are some service that can help with this. This is an old discussion forum, but many of the questions asked is still relevant. Full disclosure, I work for www.smartrent.co. We are a background checking service here in Canada.

- Renter don't want to give SIN?
For background checking service like www.smartrent.co, it is not necessary to provide SIN. Ofcourse, having a SIN vastly improved your chances of getting a successful result, but it is not necessary. Also, in our case, if the tenant provides a SIN, we dont share it with the landlord. This way the renter feels more confident to share their information.

- Not getting full report for the rental background check?
We provide the full report to the landlord. It has complete information that the free checks option out there.