 Self-Employed applicants (by Roz Roseman [OR]) Mar 18, 2018 12:49 PM
 Self-Employed applicants (by Ken [NY]) Mar 18, 2018 1:27 PM
Self-Employed applicants (by Jim in O C [CA]) Mar 18, 2018 1:35 PM
Self-Employed applicants (by RentsDue [MA]) Mar 18, 2018 2:20 PM
Self-Employed applicants (by MJ [OH]) Mar 18, 2018 2:42 PM
Self-Employed applicants (by Frank [NJ]) Mar 18, 2018 5:25 PM
Self-Employed applicants (by GKARL [PA]) Mar 18, 2018 5:59 PM
Self-Employed applicants (by Self employment [NY]) Mar 18, 2018 9:32 PM
Self-Employed applicants (by Vee [OH]) Mar 19, 2018 5:38 AM
Self-Employed applicants (by plenty [MO]) Mar 19, 2018 6:20 AM
Self-Employed applicants (by BRAD 20,000 [IN]) Mar 19, 2018 7:59 AM
Self-Employed applicants (by S i d [MO]) Mar 19, 2018 8:15 AM
Self-Employed applicants (by Doogie [KS]) Mar 19, 2018 10:11 AM
Self-Employed applicants (by Roz Roseman [OR]) Posted on: Mar 18, 2018 12:49 PM
Message:
Re: Income Verification: 1) We are planning to ask for 2 years of tax returns, signed, to replace employment verification. Any comments or additional suggestions?
2) We are also planning to verify existence of business. Any suggestions?
3) History has included identity theft. Suggestions on how to obtain credit and background information in that case?
Thank you. --67.171.xxx.xx |
Self-Employed applicants (by Ken [NY]) Posted on: Mar 18, 2018 1:27 PM
Message:
identity theft= convenient excuse for bad credit. self employed is code in class c neighborhoods among non working males for I am a bum without a job.Very rarely does someone claim to be self employed then show me acceptable proof like tax returns or even a bank account in the company name to make me want to rent to them --72.231.xxx.xxx |
Self-Employed applicants (by Jim in O C [CA]) Posted on: Mar 18, 2018 1:35 PM
Message:
For self-employed I get the last two months bank statements and the last two years tax returns. If they don’t report some income then I don’t count it as income. --75.22.xx.xxx |
Self-Employed applicants (by RentsDue [MA]) Posted on: Mar 18, 2018 2:20 PM
Message:
Easy on the negative " self employed" comments. I am in the process of refinancing. The bank wants my last 2 years taxes as I am a LL and considered self employed. If it's good enough for them it's good enough for me when it comes to screening. I would think identity theft would have a paper trail like credit freeze or police report. I see police reports here weekly for people reporting identity theft. I assume it is to prove their good standing? I do not know anyone who has not been a victim of identity theft in my family. However it hasn't rippled to anybody's credit report. Usually stops with the fraud department at the bank or CC company. --66.189.xx.xxx |
Self-Employed applicants (by MJ [OH]) Posted on: Mar 18, 2018 2:42 PM
Message:
Call the accountant listed on the tax returns as well. Make sure they actually did the returns. Google the business and verify legit. Research through the Secretary of State or state entity that registers business entities in your state. Lots of ways to verify the business is legit. I would ask for bank statements as well as tax returns. --174.105.xxx.xxx |
Self-Employed applicants (by Frank [NJ]) Posted on: Mar 18, 2018 5:25 PM
Message:
I would advise that if the tax preparer is local to act it go there and ask.
At our last turn we had many self employed applicants and 3 had d the same preparer and all were of the same ethnic group as well as the preparer.
Something did not 'smell right' so I went to the preparer. IT was like doing the Home Visit. I gota deer in the headlights reaction and felt that I had my info.
Due diligence is essential in vetting the self employed. --174.225.xxx.xx |
Self-Employed applicants (by GKARL [PA]) Posted on: Mar 18, 2018 5:59 PM
Message:
Generally, most CPA's (and most tax preparers) aren't going to release any information on any client due to confidentiality restrictions. The return can easily be verified by having them download a transcript directly from the IRS. This represents what actually got filed. I'd also use bank statements to verify as well. --207.172.xx.xxx |
Self-Employed applicants (by Self employment [NY]) Posted on: Mar 18, 2018 9:32 PM
Message:
For the woman the favorite self employment, legitimate or not is private duty (home health aide), and for men it is Barber. However the men almost always have no real job other than hustling small quantities of drugs. Few have bank accounts here, and the ones that do have no money in them. I usually asked for a W-2 from tenants to verify income, or pay stubs, which will show year to date income. --108.176.xxx.xxx |
Self-Employed applicants (by Vee [OH]) Posted on: Mar 19, 2018 5:38 AM
Message:
I have a time tested program for the self-employed, same as many students - prepaid 10 months rent, still need family references and really need 2 real property owners in the chain who will accept legal notices, otherwise same lease where 1 45-60 day inspection goes onward to 90 days after bug-a-boo have been settled, we send a copy of bank statement showing damages and rent paid to owner, when the account is at the 2 month rent value level require written need for recharging the account or a moveout date. --76.188.xxx.xx |
Self-Employed applicants (by plenty [MO]) Posted on: Mar 19, 2018 6:20 AM
Message:
Ask for two month's bank statements. Where you can see their income being deposited and their expenses coming out. They can go to library and print it out or fedex store. If they are young they May NOT understand PRINT it OUT! As they do all online and electronic transfer. No cash or under the table... Pay your share of taxes! --99.203.xx.xxx |
Self-Employed applicants (by BRAD 20,000 [IN]) Posted on: Mar 19, 2018 7:59 AM
Message:
Roz,
Me? No.
Every renter eventually moves OUT, often because they fall behind and often the LL finds damage beyond the deposit.
We stay in control of our money at move out by requiring a JOB which we can GARNISH.
If this applicant falls behind or leaves a mess, collecting your money is nearly impossible so I don’t set myself up for a loss.
If I had a nickel for every applicant who claimed ID theft or the bank messed up...Deadbeat University teaches this as a techinique to push LL Sympathy Buttons.
Sure it’s real for some, experienced in my own home,
but it’s hard to document and a very easy lie.
Keep looking for aplicants who are truly solid and ready, not making excuses.
BRAD
--68.51.xx.xxx |
Self-Employed applicants (by S i d [MO]) Posted on: Mar 19, 2018 8:15 AM
Message:
I have only accepted 1 self-employed applicant ever. It was a disaster, for many of the reasons Brad mentioned.
There are GOOD self-employed folks out there, to be sure, but as Brad mentions there are some legitimate concerns. First, how do you garnishee a self-employed person, other than by till tapping if that's allowed in your state? Second, it's just a fact that most self-employed businesses are riskier than established companies. If the person is sick, injured, goes thru another tragic life event, most small businesses go under beause there is no one who can step in and take over, keeping the boat afloat.
I would not deny self-employed straight out, but I would look for ways to mitigate the risk. After all, as my mentor Dave Ramsey says, "we're all self-employed: those with JOBs simply have one customer (i.e. their employer)." Jobs are only as secure as the worker's ability to earn income. Those of us who do the 8-5 are only one step away from a layoff, a downsize, a firing, a business closure.
This is one area I don't usually discuss when I talk about verifying employment stability, but I won't rent to someone unless their COMPANY is also solid. A 2-man lawn mowing service that's only been around a few years is only one tiny step above a self-employed person. So I screen the SOURCE OF INCOME as much if not harder than the employee.
Ways to mitigate risk with self-employed and/or other small business employees: time on job (1+ year, or in a related field), extra security deposit, excellent credit (shows they make financial health a priority), etc.
It's the same kind of issues a commercial lending bank would look at when deciding on granting a loan to a real estate investor. They're actually better able to absorb the losses due to larger portfolios, in-house legal services, and fixed collateral like a house, so I think we need to be more diligent than they are.
I want tenants to be as low risk as possible, given I market to Class C. Stable income from a garnisheeable source is one of my top priorities. --173.17.xx.xx |
Self-Employed applicants (by Doogie [KS]) Posted on: Mar 19, 2018 10:11 AM
Message:
The only self employed person I have rented to was a disaster. They left owning quite a bit. The collections attorney isn't able to do much because you can't garnish wages.
It isn't that I wouldn't rent to self employed again, but I would definitely look at it harder. What Sid said is basically what I would say. --98.175.xxx.xxx |
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