Re: Do you let renters run their own credit reports?

Re: Do you let renters run their own credit reports? by George (New York) on February 5, 2016 @11:19

Hey P-Bone, thanks for the reply. I apologize for coming off as spam. I will learn from this and post my ideas in a different way next time.

I think your points are valid. I'd like to offer my thoughts to each:

1) "It's too easy to manipulate documents now so I'd rather pull my own." - There are electronic methods where each time the renter sends a report to the landlord, the latest report is pulled directly from the Credit Bureau and sent straight to the landlord without touching the renter's hands.

2) "An applicant/tenant's SSN is an important piece of information for have for purposes of tracking the tenant down, should you need to for non-payment of rent or damage to the rental." - agree with this. However, I'd argue only a tenant's SSN is necessary since that is who you'd be chasing non-payment of rent or damage from. An applicants' SSN is not needed once you reject the applicant. Once I decide which applicant to sign the lease with, that is when I request the SSN.

3) "The protecting of PII is not the difficult. Most generally just require that it be kept in a locked place with limited access to keys of those only required to need access. This can be as simple as buying a locking file cabinet vs. a non-locking one." - Yes but this can be a hassle. Also what about electronic reports stored on your computer? A computer can be hacked.

4) "Credit reports are not that expensive in the whole scheme of performing adequate screening." - The cost can add up for renters. I live in New York City and applied to 10 apartments before I landed my current one. 10 credit and background reports at a price of $30-75 can be costly. Same thing if the landlord is paying.

5) "Who pays may depend directly on the market." - agreed

6) Why would I ever send a credit report to a prospect?" - if denied due to credit, applicants have the right to see the credit report that was used as part of the decision making. In such situations, the applicants usually reach out to landlords directly. This can be a hassle. Maybe it won't take too much time but why bother with it at all?

7) "If landlords have true, approved, landlord accounts with third party credit reporting entities, "hard" inquiries should not be happening, only "soft." - agreed here as well but not all landlords have approved accounts. There are many landlords that try to manage this process themselves without knowledge of the procedure. I've talked to several renters who have had landlords make mistakes and register "hard" inquiries on their credit

In my opinion, while handling each individual step may not seem like that much of a hassle or time consuming, when it is repeated many times for multiple applicants, it can be quite a bit of effort. This is especially the case for landlords who continue to add units to their portfolio.

Thanks for the discussion. I find it very insightful to hear from real life landlords. Again, sorry for coming off as spam everyone!

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Re: Do you let renters run their own credit reports? by P-Bone (NY and OH) on February 8, 2016 @11:34	[ Reply ]

I have to disagree again on many points... 1) Many of those electronic methods only send a snapshot of the credit report, or only a credit score, this is not adequate for me to get a clear picture of the credit worthiness of a prospect. Additionally, why would a landlord take the time to sign up for any and possibly all the many different processes that each different applicant might want to use. 2) So, I would argue, if a prospect is not willing to give it to you in order to do your own proper screening (i.e. credit check), do you really think they'd give it to you to sign a lease? You could easily waste hours screening a prospect that decides they still don't want to give up their SSN. 3) I still don't understand the hassle. Personally, I don't print out credit reports anymore, so although I have a locked cabinet for all the other PII, I don't keep physical versions of the credit report. My credit reporting provider keeps them all online and accessible for me, so I can go back and pull up an old one any time I want. 4) That's just the cost of looking for a new apartment in your market then. No one says you have to apply to 10 apartments. If you are a well qualified applicant, these costs should be low as you should be accepted from almost any you apply to. 5) New York City apparently can handle charging tenants for screening/applications, and as you have stated, you were willing to pay for up to 10 applications at $30-$75 each. As a small time landlord in Buffalo, competing against landlords who don't check credit and take on prospects with a handshake, I'm always fighting an uphill battle. 6) Again, I would never send a credit report to a prospect, even if they are denied based on credit. I would send them an adverse action letter that indicates how they can go about obtaining a copy of the credit report directly from the credit agency. I am under no obligation to provide them a copy of their credit report. 7) Again, if landlord's aren't using approved screening partners for purposes of running credit reports, than that's a different problem for those going against the rules. If is not an argument for why I should accept a prospect provided credit report.

Re: Do you let renters run their own credit reports? by George (New York) on February 8, 2016 @17:38	[ Reply ]

P-Bone, Thank you, your comments are very helpful. I am working on creating a system for efficiently and securely running and sharing credit reports. Your comments and concerns are great because it helps me validate the processes I am laying out and gives me insight into things that I may not have considered. Thanks again! I much appreciate you taking time to share your thoughts.

Re: Do you let renters run their own credit reports? - Landlord Forum thread 342809