As a rental property owner, you work vigorously to protect your property and your income. Yet, the number of rental scams is getting higher, posing difficulties for both renters and landlords. While some scammers are simple to identify, others can catch even well-informed property owners off guard if they don’t have a solid tenant screening process in place.
The excellent thing is that knowing and implementing smart screening best practices can help you avoid fraud, safeguard your investment, and sleep well knowing that your residents are trustworthy.
Know the Red Flags: Common Fraud Tactics
Rental scams can take a variety of forms, and fraudsters are always devising new tactics. This is the reason you need to stay alert and informed. One of the most common rental fraud tactics is identity theft, where an applicant takes someone else’s personal information to pass a background check.
Others might forge pay stubs or bank statements to inflate their income to look bigger 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 after they’ve already moved in. Another popular issue is renters providing fake references, such as friends or relatives, instead of real landlords who can deliver an honest rental history. All of these things can make it hard to know who you are really renting to.
Another sneaky scam that is increasing is subletting without permission. Aside from being a lease violation, unauthorized subletting can result in your property being taken over by occupants who haven’t been vetted or background checked. In some situations, renters could even be subletting your property to others with the goal of earning additional income, which puts your investment at extreme risk.
Then there are the most severe scenarios, where 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 all over the place, as it is now your duty to prove you are trustworthy. If you manage your own properties, this might become even more problematic.
Classifying these red flags is not just a great beginning; it’s a great tool in your arsenal. When you spot suspicious patterns, such as incomplete applications, denial to provide ID, or references that can’t be verified, you’re not only identifying a potential scam but also halting it in its tracks.
Tenant Screening Best Practices
On top of knowing typical schemes, having a strong tenant screening process can help guarantee that your applicants are who they claim to be. An ideal tenant screening process begins by demanding a complete application and identification for every adult who will reside in the property. Make sure that the details match the information given on their application. Subsequently, verify employment and income to ensure they can pay the rent. It is essential to call past landlords to check rental history and search for patterns of late payments, evictions, or other matters. With reference to tenant screening, consistency is crucial. Handle each applicant consistently to guarantee fairness and compliance with the regulation. Executing these tenant screening best practices permits you to catch red flags before they become huge problems.
Background Check Rental Applicants Thoroughly
For modern rental property owners, a wide-ranging background check is one of the most powerful instruments available to protect their property. Credit history can specify a variety of warning flags, including unpaid debts or a history of late payments. A criminal background check can also disclose 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. A comprehensive background check and rental screening give you a clear image of the person you’re welcoming into your property.
Stay Secure with Landlord Fraud Prevention Policies
On top of tenant screening, keeping safe also signifies handling applicants’ personal information securely. One of the simplest ways to accomplish this is to use an encrypted online portal that renters can use to upload documents. Investigate the various options for secure online application systems and choose one with a solid reputation for safety.
At long last, during the application and screening process, take the time to clearly and openly communicate your policies on security deposits, rent collection, and lease agreements—and do so in writing. This can assist in securing both you and your renter in the event of a disagreement, possibly saving you from legal trouble and unexpected financial loss.
Sleep Sound Knowing You’ve Screened Smart
As you observe, executing proper tenant screening measures now can save you a lot of trouble in the future. By observing tenant screening best practices, doing comprehensive background checks, and verifying identities, you’ll be better equipped to identify scams before they damage your property.
One of the most effective approaches to thoroughly screening tenants is to hire a professional service. The local authorities at Real Property Management Piedmont are available to give assistance and the peace of mind you desire. Contact us right away or call 404-480-4820 to find out more about our property management services in Buckhead.
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.
