You make an effort to protect your property and your income as a rental property owner. However, several rental scams are getting more common, which is a big problem for both renters and landlords. Some scammers are noticeable, but others can fool even expert property owners if they don’t have a solid tenant screening process in place.
The bright side? Being aware of and implementing smart screening best practices can help you avoid fraud, safeguard your investment, and sleep soundly knowing your residents are trustworthy.
Know the Red Flags: Common Fraud Tactics
Fraudsters are continually devising new tactics to pull off rental scams. Due to this, being alert and informed is important. One of the most common rental fraud tactics is identity theft, where an applicant uses someone else’s personal information to pass a background check.
Others might forge pay stubs or bank statements to inflate their income to look greater than it actually is. Some scammers might even cover the first month’s rent and security deposit with a bad check or stolen funds, only for the payment to bounce later while they’ve already moved in. Another typical drawback is renters providing fake references, listing friends or relatives instead of real landlords who can provide honest information on the tenant’s rental history. These can all make it difficult to know who you are really renting to.
Subletting without permission is another sneaky scam that is becoming more common. Besides lease violation, unauthorized subletting can result in your property being occupied by occupants who haven’t been vetted or background checked. In certain conditions, renters could even be subletting your property to others with the intent to earn additional income, which puts your investment at extreme risk.
Moreover, in the serious cases, fraudsters pose as landlords themselves, listing properties they don’t own and collecting deposits from unsuspecting renters. These scammers have created headaches for rental property owners everywhere, as it’s now your job to prove you are trustworthy. This may be particularly hard if you are also managing your own properties.
You have a powerful tool at your disposal in the form of the ability to detect these red flags. When you notice suspicious patterns, such as incomplete applications, refusal to provide ID, or references that can’t be verified, you’re not just identifying a potential scam; you’re stopping it in its tracks.
Tenant Screening Best Practices
Aside from knowing typical schemes, adopting a strong tenant screening process can help guarantee that your applicants are who they claim to be. All adults living in the property should be required to send a complete application and identification as part of a comprehensive tenant screening process. Be sure that the details match the information submitted on their application. Next, verify employment and income to guarantee that they are capable of paying the rent. It is critical to call past landlords to check rental history and search for patterns of late payments, evictions, or other aspects. On the subject of tenant screening, consistency is imperative. Treat every applicant consistently to guarantee fairness and compliance with the rules. Utilizing these tenant screening best practices allows you to catch red flags before they turn into complications.
Background Check Rental Applicants Thoroughly
For today’s rental property owners, a detailed background check is one of the most useful tools available to protect their property. Unpaid debts or a history of late payments are just two of the several red flags that could be found on a consumer’s credit record. A criminal background check can also expose offenses that may affect safety in your rental or community. It is important to utilize a trusted screening service and always get the applicant’s written permission first. Who you’re welcoming into your property can be better comprehended with a thorough background check and rental screening process.
Stay Secure with Landlord Fraud Prevention Policies
Handling applicants’ personal information securely goes beyond tenant screening. One of the safest approaches to do so is to use an encrypted online portal that renters can use to upload documents. Research the choices for secure online application systems and pick one with a proven reputation for safety.
To finish, throughout the application and screening process, take the time to honestly and diligently communicate your policies on security deposits, rent collection, and lease agreements—and do so in writing. This can help guard both you and your renter in case of engagement, possibly saving you from legal trouble and unexpected financial loss.
Sleep Sound Knowing You’ve Screened Smart
You may avoid a lot of suffering in the future by executing the proper tenant screening now. By adhering to tenant screening best practices, performing thorough background checks, and authenticating identities, you’ll be better equipped to identify scams before they damage your property.
The utilization of a professional service is among the ideal approaches to thoroughly screen tenants. The local professionals at Real Property Management Sailfish Coast are willing to help you attain the calmness you deserve. Contact us today or call 772-242-9094 to find out more about our property management services in Fort Pierce.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
