June 1, 2004

5 Min Read
The Importance of Tenant Identification

The Importance of Tenant Identification

Using card-scanning technology to protect your business andcustomers

By Julia P. Shih

In the age of post-9/11, various industriesself-storageincludedare finding it necessary to implement heightened security measures,if not for their own protection, then that of their clients. Specific toself-storage, one simple yet extremely effective means of tightening security isrequiring tenants to provide official documents (drivers license, passport,immigration card, etc.) to verify their identity and provide a record ofinformation. As more self-storage managers implement this requirement, they findthe practice beneficial in terms of security; but it can also minimize losseswhen it comes to collecting delinquent payments.

The Value of ID Checks

Storage operators have the right to require photoidentification from tenants during the application processas long it isrequired, without discrimination, from all customers. This is a valuable rightthat should be exercised. Everyone in this country legally should be able toobtain and present some form of photo ID, be it a drivers license, state- orcountry-issued identification card, passport or immigration card.

By asking for photo ID during the initial application, amanager can ensure the information on the application or lease matches theinformation on the card. If the information is incongruous, you could have asuspicious candidate. Checking ID will deter applicants from providing falseinformation and allow facilities to run more accurate and comprehensive creditand criminal-record checks.

In addition, the more information you have about a tenant, themore figurative insurance you will have against future problems, such asdelinquent rent. While most facilities ask tenants for a name, address andSocial Security number, it is also a good idea to ask for home and work phonenumbers where the tenant can be reached, as well as emergency-contactinformation. A photo ID will not only help verify the street address, but alsothe tenants physical description. A copy of the ID will provide a record tokeep on file. By being diligent with information gathering during the initialapplication process, operators will be more equipped to track down erranttenants.

ID Technology

There are several valuable technologies that allow storageoperators to collect and file photo IDs and the information they contain, aswell as verify their validity. Leading the market are drivers-licensescanners that scan cards in a matter of seconds and provide saved files of thepersons photo and signature.

Some high-end scanners have OCR (optical characterrecognition) functionality that reads a cards face. OCR is the onlycard-reading technology that can read ID cards from all 50 states. When a cardis scanned, the textual information on its surface, such as name, address,birthdate, etc., are automatically placed in appropriate text fields in adatabase, eliminating the tedious need to manually type all information from thecard. These scanners are great solutions for information-gathering because theyprovide a better-quality captured image than a photocopy. They also collectinformation in far less time than it would take a facility manager to collect itmanually; and they can put the information into databases that facilitate othertasks, such as billing or customer tracking.

On the Lookout

Though photo ID is an extremely valuable tool, storageoperators must be vigilant to ensure an ID presented by a tenant is not doctoredor fake. Obviously, if the photo or description on the card does not match thephysical appearance of the customer (i.e., the card shows a birthdate in the1950s, but the applicant is a young man in his twenties), something suspicious is afoot, and moreinvestigation is necessary. Doctored cards, on the other hand, can be trickier torecognize.

There are reference books on the market that describe andinclude pictures of each states drivers license as well as various formsof international identification. These books are fairly inexpensive and can be great resourcesfor verifying ID cards. The only problem is they are limited in their coverageof international IDs, as well as the newer, updated formats of driverslicenses constantly being issued.

More accurate ways of verifying photo ID involve usingtechnologies built into the cards themselves. As many as 25 states include aloaded magnetic strip on the back of their drivers licensesmuch like thoseon credit cardsthat contain the cardholders information. Magnetic stripscan be read very quickly. The downside is they tend to demagnetize easily, so itbecomes difficult to read drivers licenses that are not in good condition. Furthermore, not all of the information on the card front isstored in its magnetic strip.

Similarly, there are 20 to 25 states that issue cards withinformation loaded into a barcode. Barcode reading is extremely accurate; but,like magnetic strips, barcodes can be made less translatable due to wear andtear. Several state ID cards include magnetic strips and barcodes.

A card scanner capable of reading all card technologiesOCR,magnetic strip and barcodewill be able to compare the information stored on acard and cross-check it for matches. While an expert forger may be able todoctor the face of the card, it is highly unlikely he would be able to tamperwith either the barcode or magnetic strip.

Advantages to Storage

Card scanners using OCR technology or all three readingabilities allow operators to quickly scan a drivers license while a customerwaits and tailor the information or collective database toward his specificbusiness needs. These scanners can very well increase a facilitysprofitability by making operations more efficient and increasing closing ratiosthrough a more complete database for tenant follow-up.

In a business where every visitor is a potential sale, drivers-licensecard scanners could be the newest product to provide an edge over competitors.Through the simple task of reading and copying a customers photo ID, astorage owner can cover his bases in terms of knowing who his tenants are andverifying their identities. He can also save money down the line by making iteasier to collect delinquent payments.

Julia P. Shih is marketing manager for Card- ScanningSolutions, a developer of card-reading systems. Its systems, based on OCR(optical character recognition) technology, are designed to quickly andaccurately read the information from drivers licenses, passports and other IDcards. The companys software provides extensive database capabilities forautomatically processing, storing and manipulating acquired data. For moreinformation, call 310.691.8920; e-mail [email protected]; visitwww.card-scan.com.

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