When it comes to protecting your rental property, your best defense starts with careful tenant screening. Unfortunately, fraudulent rental applications can leave landlords incurring thousands of dollars in unpaid rent and property damage.
Today’s Scammers are more sophisticated than ever, constantly finding new ways to trick rental property owners. The most common scams often use forged documents, such as fake pay stubs, altered credit reports, and made-up references. These can show up anywhere, yet with the right skills, they’re surprisingly easy to detect online. Keep reading to learn how to spot fake documents and stay ahead of scammers.
Common Fakes: What Landlords Need to Watch For
Rental applicants may use a variety of tricks to try and deceive you. One common tactic is creating and submitting fake pay stubs to inflate or falsify their income. For instance, an applicant could use a phony stub using a free online template that looks convincing at first glance. In the same way, fake credit reports are often produced from old and modified documents. Some applicants go as far as inventing landlords or provide fake phone numbers to “references” who vouch for them.
Review every document any document a renter submits carefully. Inconsistencies in income amounts, mismatched dates, or references that can’t be verified, could signal a fraudulent rental application.
Verifying Employment: Your First Line of Defense
A good rule of thumb for rental property owners is to never accept employment details a renter gives you at face value. For example, if an applicant says they work for “ABC Marketing LLC,” try to find the company online yourself.
Call the main business line and ask for HR or payroll to confirm dates of employment and salary. If the applicant gives you a personal cell phone for their “boss” or can’t seem to provide details of their employment, that’s a red flag.
Pro tip: Look up the company on LinkedIn to confirm its existence and verify the details provided.
Detecting Fake Credit Reports and Financial Info
While there are reasons to do so, it is risky to accept credit reports directly from applicants. For example, someone might email you a PDF they’ve edited to show higher scores. No matter what the applicant provides, be sure to run your own credit reports through a trusted screening service for all adult applicants.
If a report appears odd for any reason, such as mismatched addresses, inconsistent names, or unusual fonts, it’s likely not the real deal. For example, recently, one landlord noticed a credit report had fuzzy logos and a missing phone number for the bureau. A quick call to the agency confirmed the report was fake.
Spot Fake Pay Stubs Like A Pro
Fake pay stubs may appear convincing at first glance, but many contain flaws a sharp eye can detect. Watch for perfectly round numbers every pay period. It’s something that’s uncommon in real life. For example, if every check says “$1,500.00” without any variation, it’s worth investigating further. You can also verify the employer’s tax ID number or contact the company’s payroll department to verify the pay rate.
You can also verify pay stubs by matching them against with bank statements. If the applicant claims to earn $3,000 per month yet deposits $1,200, that discrepancy should raise concerns.
Extra Verification Steps for Confident Screening
In addition to reviewing and verifying an applicant’s documents, always make it a point to call previous landlords. Avoid calling only the number the applicant provides. Instead, check the property owner’s name on county tax records to ensure you’re talking to the real landlord. Otherwise, a scammer could have a friend pose as a reference and pretend to be their previous landlord.
Be sure to request multiple forms of ID from every adult who will live in the home and ensure the addresses match those on the rental application. Finally, be sure to use a reputable tenant screening service for background checks. This helps remove the guesswork from verifying employment, credit, and rental history, giving you a clear and dependable assessment of your potential tenants.
Protect Your Property with Smart Screening
Spotting fake documents may require a bit of extra time and experience, but the peace of mind it brings is invaluable. By watching for red flags and verifying the details of each application, you can rest assured knowing your tenants are who they claim to be, thereby reducing your stress and allowing you to focus on other aspects of property management.
For assistance with screening tenants and effectively managing your Fountain Hills rental property, the local experts at Real Property Management Copper State can provide valuable support. We are committed to keeping your investment secure, occupied, and profitable. Contact us online today or call 480-681-7709.
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