As a rental property owner, you strive hard to protect your property and your income. However, rental scams are becoming more common, which is hard for both renters and landlords. Some are quick to recognize, but other scammers can catch even skilled property owners off guard if they don’t have a solid tenant screening process in place.
The beneficial news? Understanding and following smart screening best practices can help you avoid fraud, safeguard your investment, and rest easy, considering that your residents are trustworthy.
Know the Red Flags: Common Fraud Tactics
Rental scams come in numerous varieties, and fraudsters frequently devise new tactics. You should always be alert and informed because of this. One of the most common rental fraud tactics is identity theft, where an applicant uses someone else’s personal information to clear a background check.
Some people might forge pay stubs or bank statements to inflate their income to appear bigger than it really is. Some scammers might even pay 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 problem that happens a lot is renters providing fake references, naming friends or relatives instead of real landlords who could give a reliable rental history. All of these can make it hard to know who you are really renting to.
Subletting without permission is another sneaky scam that is becoming more common. Unauthorized subletting is a lease violation and can lead to occupants moving into your property who haven’t been vetted or background checked. In other situations, renters could even be subletting your property to others with the intent to earn additional income, which puts your investment at extreme risk.
In the most severe circumstances, fraudsters pose as landlords themselves, listing properties they don’t own and collecting deposits from unsuspecting renters. These scammers have presented headaches for rental property owners everywhere, since it’s now your problem to prove you are trustworthy. If you manage your own properties, this can become an even bigger problem.
Identifying these red flags is not only a good start, it’s a very useful skill. When you recognize suspicious patterns, such as incomplete applications, reluctance 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 ensure that your applicants are who they claim to be. An ideal tenant screening process commences by requiring a complete application and identification for every adult who will live in the property. Make sure that the details match the information presented on their application. Following that, verify employment and income to make sure they are capable of paying the rent. Be sure to call past landlords to check rental history and see if there are any patterns of late payments, being kicked out, or other problems. In regard to tenant screening, consistency is imperative. Handle every applicant consistently to guarantee fairness and compliance with the law. By using these tenant screening best practices, you need to catch red flags before they become big problems.
Background Check Rental Applicants Thoroughly
For today’s rental property owners, a comprehensive background check is one of the most effective tools available to protect their property. Credit reports can show many red flags, like unpaid debts or a history of late payments. A criminal background check can also identify offenses that may affect safety in your rental or community. Make sure you employ a trusted screening service and always ask the applicant for written permission first. A full background check and rental screening will give you a good idea of who you’re letting into your property.
Stay Secure with Landlord Fraud Prevention Policies
In addition to tenant screening, staying safe also implies handling applicants’ personal information securely. One of the most successful methods to do this is to utilize an encrypted online portal that renters can use to upload documents. Look into the different options for secure online application systems and pick one that has a good reputation for safety.
Lastly, throughout the application and screening process, take the opportunity to clearly and straightforwardly communicate your policies on security deposits, rent collection, and lease agreements—and do so in writing. This can help defend both you and your renter in the event of a contention, possibly saving you from legal trouble and unexpected financial loss.
Sleep Sound Knowing You’ve Screened Smart
As demonstrated, implementing the proper tenant screening steps now can save you a lot of trouble later on. By adopting tenant screening best practices, doing full background checks, and making sure people are who they say they are, you’ll be better able to identify scams before they damage your property.
One of the best ways to thoroughly screen tenants is to recruit a professional service. People who work at Real Property Management Excelled are prepared to help you get the peace of mind you desire. Contact us today or call 253-275-5999 for additional details about our property management services in Puyallup.
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.
