Avoiding Common Tenant Scams: What Can Landlords Do?

The tenant selection process is an indispensable landlord duty, second only to maintaining a safe and habitable property. Selecting the appropriate tenants means steady, on-time rental income, the potential for better property care, and other essential benefits. A rushed process can mean confronting many unnecessary issues later – from non-payment to property damage and even protracted eviction processes.

While landlords zero in on employment history, income, and other aspects, one must remember an important fact: not everyone will represent themselves honestly. Indeed, the growing threat of rental scams means more property managers and owners have been defrauded by unethical people in recent years. What are some of the most common scams that landlords might encounter, and how do you stay vigilant against them? 

Fake Identities

Identity theft isn't merely for stealing credit cards—people may also attempt to use false identities to obtain rental properties. Basic screening measures can give you a basis for investigation, such as requiring a copy of the individual's official identification. Verifying the validity of identification and similar steps can help you confirm that an applicant is indeed who they claim to be. Verifying identity should be your first step in the real estate background check process.

Forged Pay Stubs 

Applicants may attempt to alter pay stubs to make their income seem higher than it is, or they may falsify other employment records. Conducting employment verification by requiring contact information and insisting on multiple forms of income proof is a simple way to verify these numbers.

Faked Rental Histories

Ask for previous landlord contact information to conduct reference verification checks to confirm that an individual lived where they reported and was a decent tenant. Insist on additional verification forms when necessary, such as an official utility or internet provider bill showing the applicant's name at their last address.

Self-Supplied Credit Reports

Be wary if an applicant shows up with a copy of their credit report ready to share—there's no way of knowing if what they hand over is accurate or recent. Instead, always use an independent credit verification to assess an applicant's financial suitability with authentic facts.

Lying About Criminal Backgrounds

Under the federal Fair Housing Act, it's illegal to automatically deny applicants with a criminal record, but landlords can still consider criminal history as an element of tenant suitability. Check local laws to determine when and how to access this information—it can vary significantly between states. A criminal background check can reveal when an applicant hasn't been forthcoming about a complicated past.

Equipping Yourself for Effective Tenant Background Screening

With a thorough screening procedure – and a sense of what should raise your suspicions – you can gain more confidence that the tenants you select will be reliable residents for the duration of their lease.

Although backgroundchecks.com has decided to discontinue the tenant background and related credit report screening, effective September 2024, this blog offers helpful advice. The rapidly growing regulatory burdens are challenging, and we must focus on our core offerings.