“Unverifiable” Rental Tenants Can Be Like Rudolph and Save Your Christmas

“All of the other reindeers used to laugh and call him names.  They never let poor Rudolph play in any reindeer games.

 

… then all the reindeers loved him, and they shouted out with glee (whoo-pee!).  Rudolph the Red-Nosed Reindeer, you’ll go down in history!”

Rudolph the Red-Nosed Reindeer by Billy Gilman

 

Rudolph had a tough gig before becoming a legendary Christmas icon and saving Christmas one year.  Piecing together various biographical sources on Rudolph, it is clear he had a privileged, yet difficult, childhood.  Through his envied bloodline (the son of famed Donner and the beautiful doe, Mrs. Donner), he had both the connections and proximity to Santa to have a great life and career.  But the dreaded red nose seemingly doomed him to a life of ridicule and parental shame leading to his estrangement from the North Pole elite.  He found solace in the company of societal undesirables (among them a dentist!) before the serendipitous approach of uncommon foggy weather one Christmas Eve.  Santa took a chance on him and it paid off in spades.  The rest, as they say, is history.

 

When Rudolph was on the road with the undesirables, no one really knew his skills and upbringing (the bloodline, the advanced reindeer training, his untapped flight ability, etc.); they just knew he was sad, unwanted, and unloved.  He couldn’t pull out his press clippings from his pockets (no pants) or pull it up on the internet (no Wi-Fi on the Island of Misfit Toys).  And he didn’t really want to talk about his past, which recently included not even saying goodbye to his girlfriend, Clarice, the only one who really liked him for who he was (red nose and all).  He only had his focus on the future as he was trying to find himself amidst new circumstances.

 

Rudolph was a great reindeer; he just couldn’t prove it.

 

As Charlotte property managers, we get applicants who could be great tenants, but they can’t prove it.  And we want to be sure they would be before we approve them to live in one of our client’s rental houses, but the applications sometimes don’t reveal much.

 

For example, on our four main tenant screening requirements, we may receive a prospective tenant application with the following information:

 

1.  Credit report: very little to no credit history

Tenant explanation: “I don’t like debt.  I pay everything with cash.”

 

2.  Landlord history: scattered to none

Tenant explanation: “I lived with family or moved in with a significant other.  I was not on a lease or a mortgage.”

 

3.  Criminal report: nothing comes up

Tenant explanation: “I’m an outstanding citizen!”  (Kudos!)

 

4.  Income: no paystubs available

Tenant explanation: “I’m a small business owner or do work under the table.”

 

So what to do?  Much like Rudolph, there’s very little information to go on.  The tenant is basically “unverifiable”.

 

This is where it is easy as a property manager to punt and just reject the applicant.  There are a lot of fish in the sea and a verifiable tenant will probably be in contact soon.  Besides, there is a lot to lose.  If the unverifiable tenant pays rent and everything goes fine, then everyone is happy.  But if things go south, clients will understandably ask for details about the tenant screening.  “What do you mean you accepted a tenant with no verifiable information?  Remind me why I hired you????  Did you flip a coin on whether to approve them?”

 

So what to do? 

 

1.  Verify everything you can.  Get bank statements and W-2s.  Money is usually traceable in some form.

2.  Collect 2 months security deposit and as much upfront rent as possible in certified funds.

3.  Ask a lot of questions and do Google searches.  Unconventional tenants can require unconventional screening methods.  What does their social media accounts say about them?

 

We’ve found some great, long-term tenants that other landlords have rejected due to them being unverifiable.  We’ve also walked away from some that we just couldn’t get a good read on.

 

Santa gave Rudolph a chance, and Christmas was saved.  It is sometimes wise to give unverifiables a second look so rent is coming in during Christmas on your rental home.

 

Happy landlording!    

 

Brett Furniss is the head property manager of BDF Realty (Charlotte Residential Property Management), the trusted real estate advisor for Charlotte landlords & Home of $100 Flat Fee Property Management.   BDF Realty utilizes their innovative Pod System for exceptional customer service in residential property management, home repairs, and home sales for single-family homes, Uptown condos, and town homes in the Charlotte-Metro Area.  Contact Us Today!