When it comes to protecting your rental property, careful tenant screening is one of your best lines of defense. The sad reality is that fraudulent rental applications can result in landlords incurring thousands of dollars in unpaid rent and property damage.
Scammers today have become more sophisticated and continually devise new ways to deceive rental property owners. Some of the most common scams involve forged documents, such as fake pay stubs, fraudulent credit reports, and counterfeit references. These can appear anywhere and are surprisingly easy to uncover online. Read on to learn how you can spot fake documents and stay one step ahead of the fraudsters.
Common Fakes: What Landlords Need to Watch For
There are many different tricks that rental applicants may use to try to fool you. One of these is creating and submitting fake pay stubs that falsify their income. For example, an applicant might create a phony stub using a free online template that appears professional at a glance. Similarly, fake credit reports can be made using old or altered files. Some applicants even invent landlords or provide fake phone numbers to “references” who cover for them.
Examine any document a renter submits carefully. If you see inconsistencies in income amounts, dates that don’t add up, or references that can’t be verified, you may be dealing with a fraudulent rental application.
Verifying Employment: Your First Line of Defense
As a rule of thumb, rental property owners should never accept employment details from a tenant at face value. For instance, if an applicant claims to work for “ABC Marketing LLC,” try to find the company online yourself and verify.
Call the main business line and speak with HR or payroll to confirm dates of employment and salary. A personal cell phone for their “supervisor” or vague job information should raise suspicion, that’s a red flag.
Pro tip: Search for the company on LinkedIn to confirm it exists and check the accuracy of 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 can look convincingly authentic, but many still have flaws that a sharp eye can detect. For example, watch out for perfectly round numbers every pay period. That’s rare in real life. For instance, if every check says “$1,500.00” with no variation, dig deeper. You can also verify the employer’s tax ID number or call the company’s payroll department to confirm the pay rate.
Another way to verify pay stubs is to compare them with bank statements. If an applicant claims to earn $3,000 per month but only deposits $1,200, that’s a sign that something isn’t adding up.
Extra Verification Steps for Confident Screening
Beyond requesting and verifying an applicant’s documents, it’s vital to always call previous landlords. And don’t just call the number the applicant provides. For example, look up the property owner’s name on county tax records and confirm you’re speaking to the real landlord. A scammer might have a friend pose as a reference otherwise.
It’s also important to request multiple forms of ID for each adult who will be living in the home and ensure the addresses match what’s listed on the rental application. Finally, be sure to use a reputable tenant screening service for background checks. This can eliminate the guesswork involved in verifying employment, credit, and rental history, providing you with a reliable and comprehensive 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 Winchester rental property, the local experts at Real Property Management Bluegrass can provide valuable support. We are committed to keeping your investment secure, occupied, and profitable. Contact us online today or call 859-684-2054.
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