Screen Applicants like a Crime Scene Investigator

You are so excited, someone finally filled out a rental application.  You look at the credit report and the credit is score is between 540 and 580.  Your hopes drop.  They seem like nice people who have had a bit of bad luck and need a second chance.  Well, if that sounds familiar, you need to put on your detective hat, gloves, grab your blue light and start investigating.

Let’s investigate three common factors that affect a person’s credit.  I’ll set the crime scene (credit factors), give some clues and help you draw conclusions.

1.         Crimes Scene: Credit cardsClues:  If a person does not have any open credit lines within the past 6 months, the credit bureaus will not give a score.  If a person’s credit card carries a balance of 50% or more than the card’s limit, the score can go down by as much as 40 points.
I’ve unknowingly done that and my credit dropped drastically.  I paid the card off and my credit shot up. 

2.Some people are very responsible paying their bills, have little to no lates but still have a low credit score.  High credit card balances is often the reason.

A person with a lot of open credit cards also can negatively affect his or hers credit.  Keep the number of credit cards you use to a minimal.  Too much open credit is viewed negatively, because a person can get into debt very quickly.

Conclusions:  Verify the applicant has enough income to cover all of their bills and rent.  Ask to see a pay stub, call and talk with their employers.  Renting Authority can call and verify employment if you don’t want to hassle with it.

3.     Crime Scene: Medical IssuesClues:  Medical bills can become uncontrollable for most anyone.  Even if you have good insurance, some treatments and emergencies can make most people go broke.  I have a brother who lost two sons in the past 14 month to cancer.  Beside the grief from losing two children, the bills are outrageous.

Conclusion:  Is this still a credit worthy person to rent to?
Look at the dates on the credit report where medical collections show.  Most medical issues I have seen cover a 6 month to 2 yr time period.  You may notice there are lots of lates in this same time period.  If after this time period you do not see lates, other collections, then the person is onto credit recovery.  This may be a good tenant.

3.         Crimes Scene:  Charge offs, Bankruptciesand LiensClues:  Public record information gives a lot of clues about a person’s credit worthiness.  I think we all agree that charge offs, bankruptcies, foreclosures and liens are bad.  None of us want them.  However, (and this is a big however), sometimes they really help a person’s credit in the long run.

Conclusion:  Charge offs are classified as satisfied and or open.  If it is satisfied, it means that a person paid off the debt even after a business wrote it off.  A person who satisfies a charge off shows character.  This is a person who cares about paying of their obligations. They are more likely to pay their rent. The same is true for liens.

Bankruptcies can help a person get out from under a financially difficult and oppressive situation.   Bankruptcies definitely hurt a person’s credit.  And it shows up for 7 yrs.

Clues:  The good in bankruptcies is it gives a person a second chance to rebuild their credit.  Look at the date of the bankruptcy and see if there have been other negative credit issues after that date.

Conclusion:  If everything is positive after the bankruptcy, the person is probably a good risk.  I have seen credit scores in the high 600s and low 700s with a bankruptcy in the past 3 yrs.

A good forensic investigation yields good tenants.  If you need help understanding a person’s credit, please call or write.  I am always glad to help.
Thanks,
Troy
888-674-9181
tboldt@RentingAuthority.com
www.RentingAuthority.com

“Should I rent to someone with a foreclosure?”

Answer: probably not.

 Please be aware that I am sensitive to anyone who is going through a foreclosure.  I am giving this advice from the vantage point of a real estate investor.

Foreclosed applicants on average have a 24% lower credit scores.  They also have four times as many 30 or more day delinquents or derogatory.

What that means, is history has a way of repeating itself.  A person is who is foreclosed on, has a poor history of paying obligations on time.  Do you really want to risk your investment to someone like that? Take the chance that they will not pay or pay late?  Evictions are not a fun ordeal.

It’s not only tempting, but some times feels necessary to fill a vacancy quickly.  Never let your feelings of disparity cause you to give up your standards.  Create your standards for tenant screening and stick to them. 

Hint on tenant screening.  Renting Authority provides a free Applicant Rating Report with every credit report.  Use the drop down menu next to the credit score and select the “Applicant Rating Report.”  This report shows you how an applicant compares to other applicants across the country.

Please contact me with any questions regarding this topic.

Thanks,

Troy

888-674-9181

tboldt@rentingauthority.com

www.RentingAuthority.com

Why Successful Landlords do Rental History Verification

Rental history verification is an extremely important step in the tenant screening process.  If a person has been a good renter in the past, chances are they will continue this pattern.  The reverse is also true.

Rental history verification is very straight forward.  You want to speak with the past landlord and find out what type of a tenant the applicant has been.

Ask the following questions:

*Length of time rented?

*Did any problems occur while renting?  If yes explain

*How many times were they late paying rent?

*Do they know why person is leaving?

*Do they have pets?

*Are they breaking the lease?

*Would you rent to them again?

 Make sure you do good rental history verification. 

If you do not have the time to do it yourself, Renting Authority can help you. 

Log into the Property Owner’s Toolbox at http://toolbox.rentingauthority.com/login. 

Select background and credit reports. 

Click the boxes for employment and rental verification, fill in the needed information and we take care of the rest.
You will get your verification reports in 24-48hrs. The Cost is only $6 for Employment and $6 for Rental History verification or $4 each for Monthly Members.  If you have any questions, please email or call.

Next week I will give you some tips on how to do rental history verification.

Visit our new site at www.RentingAuthority.com

10 Inexpensive Ways to Spruce Up Your Rental or Rehab Property

It’s easy to fix up your properties if you have unlimited cash. However, you need to keep your repairs to a minimum to stay profitable. You also need to keep your properties in good shape to attract tenants or buyers. There are the basic improvements, such as carpet and paint, but these can still costs thousands of dollars. The following are some inexpensive ways to improve your properties with very little cash. #1) New Electrical Switch Plates This is such a minor, yet overlooked improvement. Most rental owners and rehabbers paint a unit and leave the old, ugly switch plates. Even worse, some even paint over them.New switch plates cost about 50 cents each. You can replace the entire house with new switch plates for about $20. For the foyer, living room and other obvious areas, spring for nice brass plates. They run about $5 each – not much for added class. #2) New or Improved Doors Another overlooked, yet cheap replacement item is doors. If you have ugly brown doors, replace them with nice white doors (you can paint them, but unless you have a spray gun it will take you three coats by hand).The basic hollow-core door is about $20. It comes pre-primed and pre-hung. For about $10 more, you can buy stylish six-panel doors. If you are doing a rehab, the extra $10 per door is well worth-it. For rentals, consider at least changing the downstairs doors. #3) New Door Handles In addition to changing doors, consider changing the handles. An old door handle (especially with crusted paint on it) looks drab. For about $10, you can replace them with new brass finished handles. Replace the guest bathroom and bedroom door handles with the fancy “S” handles (about $20 each). #4) Paint/Replace Trim If the entire interior of the house does not need a paint job, consider painting the trim. New, modern custom homes typically come with beige or off-white walls and bright-white trim. Use a semi-gloss bright white on all the trim in your houses.If the floor trim is worn, cracked or just plain ugly, replace it! Home Depot carries a new foam trim that is pre-painted in several finishes and costs less than 50 cents per linear foot. Create a great first impression by adding crown molding in the entry way and living room. #5) New Front Door You only get one chance to make a first impression. A cheap front door makes a house look cheap. An old front door makes a house look old. If you have nice heavy door, paint it a bold color using a high-gloss paint. If your front door is old, consider replacing it with a new, stylish door. For about $125, you can buy a very nice door. #6) Tile Foyer Entry After the front door, your next first impression is the foyer area. Most rental property foyers are graced with linoleum floors. Consider a nice 12″ Mexican tile. An 8′ x 8′ area should cost about $100 in materials. #7) New Shower Curtains It amazes me that many landlords and sellers show properties with either no shower curtain or any ugly old shower curtain in the bathroom. Don’t be cheap – drop $40 and buy a nice new rod and fancy curtain. #8) Paint Kitchen Cabinets Replacing kitchen cabinets is expensive, but painting them is cheap. If you have old 1970′s style wooden cabinets in a lovely dark brown shade, paint them. Use a semi-gloss white and finish them with colorful plastic knobs. No need to paint the inside of them (unless you own a spray gun), since you are only trying to make an impression.Americans spend 99% of their time in the kitchen (when they are not watching TV). A fancy modern faucet looks great in the kitchen. They can run as much as $150, but not to worry – most retailers (Home Depot, Home Base, etc) often run clearance sales on overstocked and discontinued models. I have found nice Delta and Price Pfister faucets for about $60 on sale. #9) Add Window Shutters If you have ugly aluminum framed windows, consider adding wooden shutters outside. They come pre-primed at most hardware retailers and are easy to install. Paint them an offset color from the outside of the house – (e.g., if the house is dark, paint the shutters white. If the house is light, paint them green, blue, etc.). #10) Add a Nice Mailbox Everyone on the block has the same black mailbox. Stand out. Be bold. For about $35 you can buy a nice colorful mailbox. For about $60 more, you can buy a nice wooden post for it. People notice these things….and they like them! by Bill Bronchick

Farmer Ron, the Big Bailout, and the 80/20 Rule

This week, Perry Marshall, one of my mentors sent me this email. Even though economic times seem tough, this is a moment of great opportunity.

Farmer Ron, the Big Bailout, and the 80/20 Rule

My father-in-law, Ron, is a 77 year old retired farmer in Southeastern Nebraska

. He wears a John Deere hat, sports a farmer’s suntan and talks kinda slow.

He had this to say about the Big Bailout:
“The people that stole my cow now want me to feed it. I resent that a lot, but I do not want my cow to die. So I guess we will have to send more cow feed their way. In the good ole days, we could have hung a couple of the rustlers and that would have delayed the next raid by awhile. Now they expect to get rewarded.”
Gotta love that simple farmer common sense.
Gotta love the fact that he’s from Nebraska. (Just like me.)
I’d like to add a few comments of my own.
First, the contrast between the mainstream news media and the entrepreneurial culture online couldn’t possibly be more striking.
Journalists, as a group, are the most financially threatened population in today’s economy.
Not because of the banking crisis, but because the Internet is destroying their business. They’re ALL
Read the rest of this entry »

Is 500k worth 25 bucks?

I had nearly identical conversations with two new landlords this week.  The conversations went roughly like this.

I found someone to rent my house.  I just need them to sign the lease. I am not sure if I want to spend the money on running a credit and background check.  I don’t want to change the applicant an application fee and scare them off either.

What do you suggest?

Of course, I suggested they run background and credit checks.  You might say, you suggest that because Renting Authority makes money from background and credit checks.  That is true, but it is a necessity.  When the economy is unstable, you must stick with the basics.

• Have applicant fill out and sign a complete rental application.
• Run background and credit reports
• Do employment and rental verification.
• Have applicant sign a rental lease agreement.

Here’s another strange occurrence.  Unfortunately, I keep hearing stories like this more and more. 

  Read the rest of this entry »

Operation Moneysuck

My mentor Perry Marshall, sent me an excellent article about doing what is most important in business.  I am inserting part of his article to introduce you to this concept.

A few years ago, John Carlton told me this story about his edgy writing career with copywriting legend Gary Halbert:

   “I think the term Operation Moneysuck is a term that makes people chuckle. But to be honest, it is the most deadly serious thing for any businessman to learn. The earlier you learn it, the better you are going to be. The more you take it to heart, the more profitable your business is going to be. 

   “I’ll tell you quickly how this story happened. When I sat in a office with Gary Halbert, we were supposed to go over a bunch of ads that we were going to write. We had a lot of business so we were going to call some clients. We had some hours to do this. 

   “Just as we sat down, his secretary came in and said, “OMG, your landlord is on the phone and he is really pissed about something.” The copier just broke, the computer just went down and there were 15 fires that were going on essentially. 

   “I thought to myself, “That is it. We are not going to get down to any business here because we have to stop and take care of these little emergencies, but how.” Halbert really surprised me and said, “Calm down, back up, get out of the room, close the door, locked it and not another word of explanation.” Then he came back and said let’s get busy. And, we worked for the next three hours, got a lot of business done and brought in a lot of money. 

   “When we opened the door later, we found the problems had solved themselves and the ones that hadn’t weren’t that important anyway.

So right about then, what I really got jammed into my head was what Operation Moneysuck was about.

What is your number one job as a landlord or property manager? 

  Read the rest of this entry »

Information is King… Want to be King?

The better and more information you have, the better decisions you make.  It’s really that simple.  The problem is getting good information for issues you have now!

Forum

Renting Authority has a solution.  We created an Independent Landlord Forum and Blog. The Forum is an on going discussion of issues that landlords deal with on a day to day basis.

You can read questions other landlords have and see how they have dealt with them.  Not only do you get our expert advice, but the advice of thousands of other landlords working in the trenches.  This is one of the most powerful resources you have as a landlord.  The best part of the forum and blog, it cost you nothing.

Here are some of the topics discussed today:

• Lease Agreement
  • Can the tenant break the lease agreement?
  • Room Mate Lease Agreement Problems
  • New lease questions
  • What are landlord’s liabilities if landlord breaks the lease?
• Background and Credit reports
  • Renting to someone who is in bankruptcy
  • Moneys up front
  • Names on lease agreement
• Landlord Advice
• Tenant Trouble
  • Feuding Tenants
  • House in a bad Neighborhood

  Read the rest of this entry »

Should I charge an application fee?

Several landlords have asked, “Should I charge an application fee?” My answer astonishes some. It is simply YES.

Three reasons why:

1.     Application fees start the filtering process
If an applicant is unwilling to pay an application fee, you may have a difficult time collecting rent.  You are in charge, it is your asset, and you make the rules.
2.     Covers your costs
Screening prospective tenants cost you time and money.  Recover as much money as possible.  If you have to screen 4 tenants to find the right one, it will cost about $100.  Don’t go in the hole $100.  Collect the application fee upfront.
3.     Being consistent on application fees reduces discrimination lawsuits
Charging differing prices and not charging at all on some applicants, opens you up for a lawsuit.  Charge a consistent fee.  Even if you feel sorry for someone. Please don’t misunderstand me.  I am not being cold hearted.  Attorneys look for inconsistencies like this to create a discrimination lawsuit.
If you have any questions or comments, please email me.
Sincerely,
Troy Boldt
Renting Authority
888-674-9181
tboldt@RentingAuthority.com
www.RentingAuthority.com

Easy Guide to Read a Credit Report

Credit Score 

The credit score indicates what type of a credit risk a person poses to a potential creditor.  Here is a simple break down:
550 and below is poor
600 to 650 is fair
651 to 700 is good
701 to 750 is great
750 plus is excellent
Report Summary 
This report shows the number of 30, 60, and 90 day late payments a person has.  This section also shows credit limits and the amount of debt a person has.
Collections 
This section shows which accounts have gone to collections.   You can view the  debt amount and if the debt is  paid off.
Public Records and Judgments
This area shows bankruptcies, liens, judgments, and evictions.
Creditors and Financial Obligations
This gives a detailed account of extended credit.
Other Reports
We have created an Applicant Rating Report.  This helps you know how one applicant compares to other applicants across the country.  Use the drop down menu in the credit report to view the Applicant Rating Report.
If you need any assistance, please call, email or chat online.
Thanks,
Troy Boldt
888-647-9181
tboldt@rentingauthority.com
http://rentingauthority.com
Online support at:
https://messenger.providesupport.com/messenger/chazing.html

Should I charge an application fee?

Several landlords have asked, “Should I charge an application fee?” My answer astonishes some. Yes.
Three reasons why:
1.   Application fees start the filtering process
If an applicant is unwilling to pay an application fee, you may have a difficult time collecting rent.  You are in charge, it is your asset, and you make the rules.
2.   Covers your costs
Screening prospective tenants cost you time and money.  Recover as much money as possible.  If you have to screen 4 tenants to find the right one, it will cost about $100.  Don’t go in the hole $100.  Collect the application fee upfront.
3.   Reduces discrimination lawsuits
Charging differing prices and not charging at all on some applicants, opens you up for a lawsuit.  Charge a consistent fee.  Even if you feel sorry for someone. Please don’t misunderstand me.  I am not being cold hearted.  Attorneys look for inconsistencies like this to create a discrimination lawsuit.
If you have any questions or comments, please email me.
Sincerely,
Troy Boldt
Renting Authority
888-674-9181
tboldt@RentingAuthority.com
http://www.RentingAuthority.com

The Reality of New Year’s Resolutions

It’s been about a week since you sat down and made your proverbial New Year’s Resolution.  Odds are you are doing well keeping them so far.
Your glowing determination to succeed fades quickly after a few months.  Here are the revealing realities of New Year’s Resolutions.
40-45% of adult Americans make one or more New Year’s Resolutions.
75% keep resolutions past 1 week
71% keep resolutions past 2 weeks
64% keep resolutions past 1 month
46% keep resolutions after 6 months.
That means only 16 to 20% of adult Americans stick with a goal longer than 6 months.  80-84% of Americans fail completely. Explicitly writing out goals increases success rate by 10 times.

America’s most popular New Years Resolution.
•    Lose Weight
•    Manage Debt
•    Save Money
•    Get a Better Job
•    Get Fit
•    Eat Right
•    Get a Better Education
•    Drink Less Alcohol
•    Quit Smoking Now
•    Reduce Stress Overall
•    Reduce Stress at Work
•    Take a Trip
•    Volunteer to Help Others
Read the rest of this entry »

A Typical Lease Agreement Nightmare

Here’s a typical lease agreement nightmare. Make sure your rental lease agreement protects you in situations like this. http://www.rentingauthority.com/lease_agreement/
Patti bought a generic lease agree from an office supply store. It covers the basics: when rent is due, late fees and when the lease ends. Unfortunately for Patti, the generic lease did not cover 4 vital issues that created a nightmare.
1. Guests
2. Pets
3. Waterbeds
4. Rental insurance
Issue 1
Patti’s tenant Rochelle decided that her boyfriend Chris should move in her. Rochelle did not feel she needed to inform Patti because the lease did not mention anything about guest staying in the rental with her. Patti did not find not about Chris until too late.
Issue 2
Chris moved in and brought his two cats and 75lbs dog. Chris and Rochelle were irresponsible with their pets. The cats used the carpet as a litter box and the dog dug holes all over the yard. He also barked constantly at the neighbor’s children.
Issue 3
Rochelle liked Chris’s waterbed, so he set it up in the upstairs bedroom. Chris and Rochelle both worked and left the pets unattended during the day. On a Thursday, they left the backdoor slightly ajar. The dog came in the house and chased the cats throughout. Sadly, the tan cat jumped on the waterbed and the dog followed. This chase resulted in a punctured waterbed.
Read the rest of this entry »

Can a 10 minute video really avoid a lawsuits?

Recently, I had a great conversation with one of Renting Authority’s members.  He mentioned that he always video tapes his properties before a tenant moves in.
This is really a great idea that I need to share with you.  Here are a few tips.
Date the video and show the new tenant in the video.  Hold up a newspaper if needed.
Outside: video the outside and include the yard, fence, sidewalk, stairs, rain gutter, roof (if possible), doors and locks, windows and exterior of structure
Inside
Walls: make mention of holes and paint condition
Carpet: wear, quality and condition
Kitchen: show functioning appliances – plumbing, kitchen condition
Bathroom: show functioning plumbing, cleanliness, lack of mold (I hope)
Let the tenant know you have video documentation of the rental’s present state.  Video taping will help safe guard you from lawsuits.  It is great documentation.  This also eliminates disputes about the condition of your property once the tenant moves out.
Spending an extra 30 minutes video taping before a tenant moves in could save you a lot of money and headaches down the road
To your success,
Troy Boldt
tboldt@rentingauthority.com
www.RentingAuthority.com

Is Employment Verification Really That Important?

Yes, employment verification is an extremely important step in the tenant screening process.  A renter needs a good job so he or she can pay the rent.  Let me give you a list of things to inquire about.
One of the most important things is to pay attention to is: who and how the business phone is answered.  Why, because some people will give you a friend to call and pretend they are the employer.  The phone should be answered with a business name.
Ask for the applicant’s supervisor or boss.  This information should have been provided by the applicant on the application.
Asking the right questions is key to getting the right info.
We ask the following questions:
-    How long has the applicant been employed there?
-    Is he or she currently employed there?
-    Is the job full time, part time or temporary?
-    How many hours a week does he or she work?
-    Verify the monthly income.  (Employers may require copy of singed authorization for this)
-    Does their job future look good?
Order an employment report now.
http://www.rentingauthority.com/employment_rental_reports/
Renting Authority Provides third party employment history reports
Log into the Property Owner’s Toolbox at http://www.toolbox.rentingauthority.com
1.    Select Past Rental and Employment Reports.
2.    Click the box for Employment Report,
3.    Fill in the needed information and we take care of the rest.
You receive your Employment Report in 24-48 business hours
The Cost is only:
$6 for Employment Verification
$6 for Rental History Verification
Only $4 each for Gold Members
Upgrade your membership now
https://www.rentingauthority.com/cc/pay.php
Click here for sample employment history report
http://www.rentingauthority.com/sites/employsurvey.htm
Click here to login and order rental history reports now
http://www.toolbox.rentingauthority.com
Troy Boldt
888-674-9181
tboldt@rentingauthority.com
http://www.rentingauthority.com

Craig’s List and Renting Authority

I use Craig’s List as a way to find my tenants. I have found several good matches this way. I always post in my adds that I require an in person appointment and that I will require a credit & background checks.
This way it helps to weed out the scammers and losers. Thanks to Renting Authority, I have the ability to screen them, even though I am just one person with one property renting out separate rooms.
Beth

5 Reasons Renting Still Beats Buying

Jack Hough published an excellent Yahoo article earlier this week.
This weekend I’ll throw $1,100 down the drain. That is to say, I’ll pay my rent. Pop-finance pundits have long used the drain cliché to describe how renters like me waste money, while homeowners with mortgages “pay themselves” and “build equity.” In April 2007 I argued something different: Renting Makes More Financial Sense Than Home ownership. Basically, houses produce poor returns over long time periods while stocks and other investments produce good ones, and the outlook for houses is especially poor now, so I’d rather rent cheaply and funnel my extra cash into something other than a house.
Even though house prices have plunged and I have enough money to buy one, I’m still not nearly tempted. In what follows I’ll give five reasons. (The first two form the core of my original argument.) Before all this starts to sound too self-congratulatory, I’ll also explain the one big thing my essay got wrong.
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Reason 1: Houses produce lousy returns, while stocks produce good ones
Houses looked like smart investments in 2007. They had returned 9.3% a year for a decade, while stocks had returned just 5.9%. This year, with investors fleeing both houses and stocks, both probably look like a waste of money. But be careful about succumbing to what psychologists call recency bias — the tendency to form beliefs based largely on the most recent observations in a long series of data. For U.S. investors, reliable data on stocks and houses goes back well further than 10, 20 or even 50 years.
Stocks returned 7% a year for 200 years ended 2004, according to Wharton professor Jeremy Siegel. That’s after subtracting an average of 3% a year for inflation, or the gradual rise in prices of ordinary goods. The plunge in stock prices over the past 16 months makes me all the more sure that shares are poised to deliver good returns over the next decade or two. Houses returned 0.4% a year over 114 years ended 2004, according to Yale professor Robert Shiller, co-creator of the most widely used index for house prices. That number is suspiciously close to zero. Indeed, it might have been zero, reckons Shiller, if not for two periods of aggressive house buying, one spurred by government incentives following World War II and another created by the Federal Reserve’s drastic interest rate cuts in 2002 and 2003.
Read the rest of this entry »

Online Rent Pay FAQ

What is Online Rent Pay?
Our service allows Renters to pay their rent and deposits, over the Internet. All transactions are deposited into the Property Manager/Owner’s bank account.
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What are the benefits of using the Renting Authority service?
Online rent payments will be the norm in the near future. Enjoy the ease of not cashing checks, automatic deposits, and electronic record keeping, avoiding lost or late payments, and improved service for your Residents.
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The Internet is increasingly the place of choice for businesses to reach and connect people. Prospective Renters are turning to the Internet now more than ever to fulfill their living needs.
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How do the transactions occur?
1. The Payer submits their payment in the secure Pay Rent section of your website.
2. The transaction is processed in the Automatic Clearing House (ACH) network.
3. The payment is deposited into the Payee’s checking or savings account.
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What are the fees for using Online Rent Pay?
There is a $5 transaction fee for each payment paid by check submitted through the service.  Credit card transition fee is $5 plus 3% of the transaction.  All paid by the tenant.
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Do you receive a confirmation that a payment has been submitted?
For each payment submitted on Renting Authority, the Payer and Payee will receive a confirmation email with the transaction id if a valid email address has been entered in the profiles for the users.
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How do I know the system is secure?
All transactions on Renting Authority are 128-bit encrypted and we use industry-standard Secure Socket layer (SSL) technology to protect your information.
We will never request or send your bank account information through email, if you ever receive an email requesting your bank account information please contact us immediately.
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Member FDIC
Renting Authority processes every electronic payment through institutions insured by the Federal Deposit Insurance Corporation (FDIC). The FDIC insures deposits in banks and thrift institutions for up to $250,000; identifies, monitors and addresses risks to the deposit insurance funds; and limits the effect on the economy when an insured institution fails.
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CISP Compliant
Renting Authority is in full-compliance with Visa’s Cardholder Information Securty Program (CISP). Since its launch in April 2000, CISP has defined a standard of due care for securing Visa cardholder data, wherever it is located. CISP compliance is mandatory for all entities storing, processing, or transmitting Visa cardholder data.
Renting Authority adheres to strict policies for providing the highest level of data security at all times. Renting Authority maintains CISP compliance by adhering to all of the following security requirements:
* Working firewalls
* Up-to-date security patches
* Protection of stored data
* Encryption of public networks
* Regularly updated anti-virus software
* Restricted access by “need to know”
* Unique ID to each person with computer access
* No vendor-supplied defaults for passwords and security parameters
* Access tracking to data by unique ID
* Regularly tested security systems and processes
* Regularly maintained information security policy
* Restricted physical access to data
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How does the ACH process work?
The Automated Clearing House (ACH) Network is a nationwide batch-oriented electronic payment network to transfer funds between financial institutions. ACH payments provide improved cash management capabilities and lower costs than traditional paper payments by electronically debiting or crediting a company’s or individual’s deposit accounts, such as checking and savings accounts. The ACH Process consists of the following steps:
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1. A company or individual (Receiver) authorizes another company or individual (Originator) to initiate a transaction to their financial institution account.
2. Then the Originator submits the transaction to an Originating Depository Financial Institution, known as an ODFI.
3. The ODFI collects ACH transactions and then submits the consolidated information to an ACH Operator.
4. The ACH Operator processes the transactions from the ODFIs and distributes the transactions to the Receiving Depository Financial Institutions, know as an RDFI.
5. The RDFI receives the entries for its customer accounts and then posts the entries on the settlement date of the transaction.
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How do I contact Renting Authority?
You can use one of the following options to contact us, please let us know if you have any questions, comments, or suggestions:
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Email
support@rentingauthority.com
Renting Authority Customer Service Representatives are available to assist you Monday through Friday 9:00 AM MST to 5:00 PM MST
Telephone
1-(888) 674-9181
Fax: 1-(801)-406-0104
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Renter’s Common Questions
What are the Registration steps for a Renter?
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The renter clicks on the pay rent tab located in your website.  Follow the step by step instructions.
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Do I have to create a profile?
Yes, Renters are required to create a profile on the Renting Authority service in order to submit a Rental Payment. Creating a profile allows the Renter to easily submit Rental Payments without having to re-enter their account information for each payment.
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Can payments be submitted via telephone?
No
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Does Online Rent Pay allow credit cards to be used for paying rent?
Yes.  Renters pay a transaction fee of 3%  of the rent amount plus $5
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Property Manager/Owner’s Common Questions:
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What are the Registration steps for a Property Manager/Owner?
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Fax the following information to (801)406-0104:

• A copy of a voided check for the checking account associated with the property.
• A copy of a valid government issued I.D.

After we receive the voided check and I.D. we will activate the property so you can begin accepting rent payments online.
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What is required to Activate a Property after it has been added?
For your security we require the following be faxed or emailed to us for each bank account used for receiving online payments:
- A copy of a voided check for the checking account associated with the property
- A copy of a valid government issued I.D.
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Fax: 1-(801) 406-0104
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Once we receive these two items we will activate your property so that you can begin accepting rent payments online. If you have multiple properties and use the same bank account for each property you only need to send the information once. If you use different bank accounts for your properties please send a voided check for each bank account.
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How fast will I get my rent money?
First time users of Renting Authority’s Online Rent Pay are required to wait a minimal of 5 business days.
Landlords in good standing with Renting Authority receive sub sequential Rent Funds in 3-4 business days.
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The funds will be deposited into the Payee’s banking account within 3-4 business days of the payment submission.  Payment must be submitted before 3pm EST to count for that day.  Payments received after 3pm EST will be processed the following business day.
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What happens if a rent check bounces?
The tenant is charged a $25 fee.  If Renting Authority has already transferred funds to the landlord, funds will be pulled back out of landlords account.
If funds have not yet been transferred to landlord’s account, landlord receives an email from Renting Authority informing of returned check.
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Renting Authority reserves the right to hold future rent checks transfers for a minimal of 5 business days with 2 of more returned checks within a 3 month period.
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Is Renting Authority acting as a collection agency?
Renting Authority’s Rent Payment Service assists both you and your Renter by facilitating electronic transactions between the parties. Renting Authority simply provides an electronic alternative to the traditional forms of rent payment. While this electronic alternative will bestow numerous benefits on both Property Owner/Managers and the Renter, the collection of such rents and related payments remain their legal responsibility. Renting Authority is in the business of simplifying the rent payment process, but unfortunately we are not in the business of collections.
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Can I use Online Rent Pay for any type of property?
Any property you are collecting payments or fees for can be used with Renting Authority, such as residential properties, multi-family properties, commercial properties, and vacation properties.
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Can I use different bank accounts for each property?
Yes
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Can I charge a late fee for late rent payments?
With Renting Authority you can specify what day of the month rent is late after and what fee to charge for late rent payments and the system will automatically generate a late fee transaction for late rent payments. When a fee is charged for late rent payments a separate transaction will be created to debit the renter instead of adding the fee amount to the rent payment.
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There isn’t an additional transaction fee for the late fee transaction though. The late fee transaction is scheduled for 2 days after the rent payment in order to provide time for the property manager to cancel the late fee before it is transmitted to the ACH system if warranted. The automatic late fee only applies to rent payment transaction types and not other transaction types, such as security deposit or utility payment for example.

Customer Support

Thank you for your timely response and explanation of the difference!
As new Landlords, we were excited about finding this site. The electronic application process was wonderful as it allowed us to simply enter the applicant’s name & email address then sit back and wait to view the three reports (Employment, Background & Credit). The applicant paid the fees and your service handled the consent forms & other authorizations.
The contract was nice too but we did run into some glitches:
First, it doesn’t have option to pull any information from rental application. We tried to find the applicant’s address & phone numbers to get started but they were not viewable so we had to call them.
Once entered we were moving along well but it didn’t pull any information set up originally with applicant such as Pet Deposits, Non smoking, state variances, etc.
Once finished, we purchased the contract download. The download could not be saved. We even tried copying it into MS Word and had difficulty saving the soft copy. There were several typos, spacing issues and grammatical & punctuation errors.
We had to add property description, correct verbiage to state house rather than apartment, insert missing paragraph on Inspections (copied from sample), delete repeated paragraph, etc.
Overall, I believe the terms of the contract will serve as protection to us but I thought you might like the feedback.
We have already told several people about your site (Realators, Investment Bankers, Insurance Agents and other acquaintances).
Thank you again!
Eugene
Kellyville, OK

3 Reasons a Landlord Should Require Tenants to Have Renter's Insurance

Landlords are in business to make a profit and protect their assets, and requiring tenants to have renters insurance helps them achieve that goal. The concern is that if you’re not protected with a policy, they may be financially responsible in part if someone brings legal action against you. It’s not illegal, but it can prevent you from renting an apartment if you choose for whatever reason not to buy a policy. There are a number of reasons why a landlord would require you to buy renter’s insurance. Let’s look at 3:
1. Legal Protection
The landlord’s primary concern is that there will be more than enough money to protect you and them in a lawsuit arising from accidents or injuries of others who visit you in your apartment. For example, if you invite a guest who slips and falls in your apartment and breaks a bone, you could be sued for liability. If you don’t have money to defend yourself in a lawsuit and pay a judgment awarded against you, your guest may include your landlord in the lawsuit to recover damages. They might do that anyway, but your landlord is protected if you own a renter’s insurance policy. This is the main reason why a landlord requires tenants to have renter’s insurance.
2. Avoid Additional Claims on Property Insurance
Another reason why landlords require renter’s insurance is to avoid filing claims on their own insurance. Each claim they file will result in higher premium payments for them, and there may come a point where their insurance company will decide to stop insuring them. If you live in an apartment building with many tenants, there’s a greater chance of this happening. Each tenant has the potential to cause the landlord to file a claim to pay for liability, medical payments or other damages. A landlord views this as a burden, and wants each tenant to take that on themselves.
3. Protection for Other Tenants
It’s also to ensure that the other tenants are protected. If you live in a duplex, or a building with multiple units, each tenant is potentially at risk due to negligence of other tenants. For example, if one tenant floods their apartment by mistake, such as by leaving the tub on while at work without realizing it, it can destroy the belongings of tenants on the bottom floor or even tenants in the adjacent apartment. Those tenants will have to pay to replace any damaged items, such as electronics, and they may not have enough money to pursue you in court. However, if the landlord requires everyone to buy renter’s insurance, then all tenants can sleep at night knowing they can file a claim if necessary.
A landlord who requires renter’s insurance should provide property security for the apartment, such as dead bolts, security cameras if appropriate and the prompt removal of tenants engaging in illegal activity. They should also be held accountable for maintaining the premises

from: www.ohmyapt.com – staff writer