Payslip manipulation is real. Tenants who cannot afford to live in a rental property “doctor” their payslip to show a higher salary. But, a few months after placing the tenant, they start to pay late or stop paying altogether.
Credit bureau TPN recently introduced employment verification to ensure the tenant is employed where they claim, and receives the salary they say they do.
How does TPN do this, and how does it get HR departments to handover payroll information on their employees?
“There are two aspects to this: first the employer has the incentive to provide payroll information to minimise CV embellishments,” said TPN MD, Michelle Dickens. “An added bonus application is employment verification and affordability income confirmation by credit providers and estate agents. The TPN RentCheck is based on reciprocity – share your data and you have access to verified employment information in return.”
Dickens said that while monthly payroll information would be obtained “from every employer in the country”, their database continued to grow.
“We have identified three primary market segments in which high employee turnover is common,” she said. “These are the real estate industry in which TPN already has 95% of the market share, schools and the security industry.”
But what happens if the tenant is self-employed?
“Credit worthiness and affordability assessments remain important but can be supplemented with bank codes, bank account verification and a very specific affordability code provided by the bank that that account and that specific rental amount passes the affordability assessment.”