Applicant Screening for the Perfect Resident! Presented by: Gary Glucroft The Screening Pros, LLC

1. Applicant Screening for the Perfect Resident! Presented by: Gary Glucroft The Screening Pros, LLC

2. What will we discuss? ● Are you prepared to hand out your rental application ● Giving your applicant the rental application ● Is the application complete ● The verification process ● Are you ready for the “red flags?”

3. Before the Application… Do you have a written resident selection criteria? ● Let your applicant know that you are serious. ● Discuss your criteria line by line with the applicant. ● List exactly what you expect from your applicant. ● Do you charge an application fee? Are you compliant? As of January 2012, the adjusted CPI rate is $42.50 ●Credit requirements, eviction policy, employment, residency, criminal records, etc. ● If the applicant is aware of your criteria up front, they will most likely look elsewhere if they know they will not be accepted.

4. Application Time… ● When is the only time to accept an application through mail or fax? ● Require a completed rental application from all prospective occupants over the age of eighteen. Do not consider spouses on the rental application. Treat spouses as co-applicants, WHY? ● Now that you all have a written selection criteria, how many of you attach a copy of it to your rental application? ● Once again, over communicate with your applicant.

5. Application Time… ● Understanding that many rental applications are different, make sure that your application at a very minimum asks for a complete name; a government issued ID, a full date of birth, all other aka’s (do not ask for maiden name); residential addresses for the past seven years; intended co-occupants, employment history, banking information; personal information; a nearest relative, some credit accounts; vehicles to be parked on the premises; and lastly, question about pets, arrest, convictions, evictions, etc. ● Require as much information as possible to properly screen your applicant and If you need to collect a debt from the resident. ●Your application should have a place for the applicant to sign and date giving permission to whatever investigation is required to determine the applicant’s acceptability.

6. The Completed Application and Fraud… What are thethree red flags of identifying a fraudulent application? 1. An incomplete rental application. 2. Intentionally sloppy writing. 3. Intentionally false information.

7. The Completed Application… ● Thoroughly go over the application with your applicant in person. A highlighter is a good tool to use when reviewing an application. Make sure all blanks are filled in and the information is legible and understandable. If items are blank, have the applicant complete the item. Even if the answer is “none”, or “not applicable.” ●Do you ever write on the rental application? If your applicant did not do it, they can not be blamed. ● If the application was not filled out in your presence, have the applicant write some information on a piece of paper and compare it with the the application. Likewise, the applicant should sign the application form again so that it is Certain that the signature on the application is the same.

8. The Verification Process… The Driver’s License ● Check the ID card carefully. ● Does the document appear legitimate? ● Check the picture, is it your applicant? ● Use a black light to see flag images ● Check the font size on the name and address ● Fees due date ● Check the signature. Does it match the signature line on the application? ● Check the DOB, name, address and ID number. Does it match the application? ● Question the applicant of any discrepancies and make notes regarding the responses. These answers may be a reason to reject your applicant. ● If the address is different on the application, supply it to the screening company.

10. The Verification Process… The Social Security Card ● Ask to see the Social Security Card. ● Verify that the SS# is the same as given on the application. ● Do the first three digits of the SS# coincide with where the applicant says they are from. Social Security cards are issued by state origin of the citizen. ● Does the document appear to be legitimate? ● How can you quickly identify if the document is a counterfeit? Font? Signature line? Ink? Feel? 00?

11. The Verification Process… Employment ● Require several recent pay stubs along with the current stub. ● Verify that the SS# on the pay stub is the same as the application. ● If the employer’s phone number is on the pay stub, verify it with the application. ● Call the employer. Try to get the phone number from the phone book. The number supplied by the applicant may be false. Is the number the same as the application? ● Try to speak with someone as far from the applicant as possible. Personnel or payroll department. Sombody too close may have already arraigned a false story. ● Do a callback!

12. The Verification Process… Residence ● At this point, you should have already verified the address on the identification. ● Require the applicant to supply recent utility bills. Examine that the utilities are paid on time. The name on the bill matches your applicant and the address on the bill is the same as their current address on the application. ● Call the current landlord. Like the employment, try to get the phone number from the phone book. Is the number the same as the application? Ask specific questions, such as: When did tenancy start? How much rent is being paid? How many persons in the applicant's unit? Any pets? Any complaints from neighbors? Any notices for rent or nuisance served? Has notice of moving been given? Etc. ● Due to motivation for a current landlord to lie in order to get rid of their problem tenant, be sure to verify prior landlords. ● Do a callback!

13. The Verification Process… Banking ● Obtaining information from your applicant’s bank is growing more difficult each day. If not, impossible. Do the following to gain as much banking information as possible: 1) Ask to see your applicants recent monthly banking statements. 2) Confirm that the name on the account and the address coincide with the application. 3) Identify the beginning and ending balances along with the deposits. This should coincide with the applicant’s claimed earnings on the application. 4) The statement will also identify any NSF activity.

14. The Tenant Screening Company… Eviction Reports ● Make sure that you are using a competent applicant screening company. ●A competent screening company will be able to identify if your applicant has any present or prior eviction cases or any other property related cases. ● Identify if your screening company reports derogatory information reported by landlords regarding their residents. ● Be certain that your screening company gets cases as they are filed and not just cases that have judgments. This is the distinction that separates the professionals from the fluff. 60/30/10 ● It has been proven that if a person has been evicted, it will happen again. Don’t let the next victim be you!

15. The Tenant Screening Company… Credit Reports ● Make sure your screening company can supply you with a credit report from a major, national credit reporting bureau. Order your credit report with the eviction report for verification purposes. ●Do you or have ever accepted a credit report from your applicant? ● Verification of the address can be made from the credit report. It is your obligation to verify additional verification documents if the addresses on the credit report are different than what is stated on the rental application. ● Do not take the applicant’s word that trade lines have been included in a bankruptcy if you do not see it. ● As an end user of consumer reports, it is your responsibility to Understand your obligations when using credit reports. You can obtain a copy of the Fair Credit Reporting Act (FCRA) from www.ftc.gov.

16. The Tenant Screening Company… Criminal Reports ● What’s the difference between a comprehensive court record and a multi-state criminal report? ● National Registered Sex offender reports/database. Check Writing Verification ● What, where and why.

17. Are you ready for the “red flag rules” Full compliance goes into effect November 1. 2008 What is a “Red Flag”? “A pattern, practice or specific activity that indicates the possible existence of identity theft”. The Red Flag Rule implements sections 114 and 315 of the Fair and Accurate Credit Transactions Act of 2003(FACT Act). Section 315 applies to “users of consumer reports” YOU! As users of consumer reports, you must have policies and procedures in place to form a reasonable belief that you know the identity of the consumer that you obtained a consumer report on.

18. What ARE the “Red Flags?” *Notifications or warnings from the Credit Reporting Agencies: • - Fraud or Active Duty Alerts • - Consumer File Freeze • - Notice of Address Discrepancy • - Unusually high number of recent inquiries • - Accounts that are closed for cause (i.e.: lost or stolen cards)

19. *Suspicious Documents: • - Identification documents that appear to have been altered or forged • - The photograph or physical description does not match the applicant • - The signature on the application does not match the signature on the identification • - The identification appears to have been destroyed or damaged and reassembled (washed, torn, etc) • - Application is illegible or incomplete • - Other information on the identification does not match what your applicant is telling you

20. *Suspicious Personal Identifying Information: • - The address provided on the application does not match any of the addresses on the credit report. • - The Social Security Number provided has not been issued or is listed on the credit report as issued to someone reported as deceased. • - The social security number is reported on the credit report as having been issued before your applicant was born.

21. What are your responsibilities? • Check illegible and incomplete applications while your applicantis still standing in front of you. • Check government issued photo identification and compare the information with application. • Is the date of birth on the credit report consistent with your applicant’s age or DOB on the rental application? • Are there Fraud Alerts or other Notifications from the credit bureau? QUESTION your applicant. • Are the addresses on the credit report the same as the application? If not, ask for verification such as imprinted check or utility bill.

22. Red Flags are not necessarily cause for immediate denial Think of them as more of a highlighter ● pay attention to the discrepancy and investigate it further. There is likely a reasonable, verifiable explanation.

23. Questions?