Don T Think That Obtaining A Credit Report Is Enough

Category: Finance, Real Estate.

Identity theft is growing exponentially! The truth is, identity theft protection goes both ways- - and as a landlord, you must protect yourself as well.

There are plenty of websites and information devoted to stopping someone from stealing your identity- - but how do you know if the person you are talking to is who they say they are? Do you check for identity theft when you do your background check? There are about 10 million identity theft victims in U. According to the U. Federal Trade Commission, it takes approximately 12 months for an individual to even figure out they are a victim. Chances are, one of these thieves may apply to rent a room from you! I talk about different identity theft protection strategies in my ebook" Room 4 Rent: Turn Your Extra Room Into Extra Money! " such as resources for spotting a fake driver s license or state ID.

How do you know your potential roommate is telling the truth about who they say they are? Don t think that obtaining a credit report is enough! Ask A Lot Of Questions( But Don t Interrogate) When you rent rooms, the best thing you can do to spot identity theft is to ask detailed questions on your roommate application. There are other things you should do when performing a tenant screening or background check. Once you do that, perform an interview and ask them these questions again. Do they pause too long for a basic question?

Alternatively, you can fill out the application yourself and ask the questions, paying attention to how they answer them. If they can t answer a specific question, then why? There are a variety of resources you can use to check your roommate s background. Do A Background Check/ Tenant Screening. If you are charging a tenant screening fee( and you should! ) use that fee to check references- - by paying to obtain a credit report or background check. The more comprehensive the report, the more expensive it is.

There are plenty of places that charge for that information. Do your research before figuring out an application fee. I talk about how to establish yourself as a legitimate business in my book. Keep in mind that most companies will want you to be an established business. Some questions you will definitely want to ask in an application may seem silly or strange, but help spot the liars. What city and state were you born?

For example: Who is your utility provider? Where did you go to high school? My Public Info. These types of questions are not easily obtained by a basic public record search, but are hard questions for someone committing identity theft. The easiest, but most expensive, quickest way to detect an identity theft to ask them to obtain a report from My Public Info. Go online and have your potential roommate get this report in your presence.

This is an online company that provides a personalized report which includes a public record search and credit report. At last check, this report is about$ 8If you cannot prove your identity, you won t be charged for the report( I do NOT have any financial interests in this company, by the way. In order to get this report, an individual must give their basic information( name, social security number, address( ssn) ). No stock, nor am I, affiliate program an employee) . This is information an identity thief would possess. This information is obtained from a credit report and other public records. After they pass Phase 1, they will be asked additional identifying questions that only an individual would know( such as, "where did you live in 1986? " or" what is the amount of your car payment? ").

The questions are random and the answers are much harder for an identity thief to obtain. If the applicant does not want to do this, or share information with you, then you don t want them as your roommate. You can be pretty sure that if an application can obtain their own report, they are who they say they are. Simple as that. Their report also gives them access to other goodies that My Public Info provides. Allow that person to keep their own report, and agree not to make copies.

In fact, EVERYONE should get this background check report to see if they are have become a victim of identity theft or if their information is just plain incorrect. Social Security Number Validator- - Look up" social security number validators" on the Web. It s more comprehensive than a credit report, so it s to their benefit. These validators can verify that the social security number( SSN) used is valid and was not assigned to someone currently deceased. For example, most people get their social security number( SSN) at the place they were born( foreign- born people have a special number as well) . There is also a reference which breaks down the social security number code and you can also verify that person is telling the truth about the basics of their background.

Professional License Validation- - Most, if not all states have an online license check. If your applicant states they have a professional license, then check. You can validate that a doctor, or electrician for, real estate agent example, holds a valid license to practice in that state. Public Record Search- - Many states have an online search for a variety of court records( for free) . If you don t have the funds( and you should, since you are charging an application fee) , this is an alternative. Of course, this is a needle- in- a- haystack kind of search if you go state- by- state, but there are companies who will do a comprehensive search for a fee. While yes, you want to supplement your income by renting a room, remember that safety and security for you, your family and your roomates are of primary concern.

While your requests may seem initially intrusive, the upside is you will know exactly who is living with you. However, be prepared to meet some resistance from applicants. And your roommates will know that you are a practical and fair landlord. Also, your potential roommates will now have valuable knowledge and information about identify theft which will enable them to protect themselves. Assure your applicants that you have asked these questions of EVERY potential roommate, that the questions are not biased and you would expect to be asked the same questions( if not more) if you were attempting to rent a room yourself. Is that good or good?

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