As a rental property owner, you put in the effort to protect your property and your income. However, the rise in rental scams is presenting challenging circumstances for both renters and landlords. Even though some are easy to identify, other scammers can shock even skilled property owners if they lack a solid tenant screening process in place.
The positive news? Comprehending and utilizing smart screening best practices can help you avoid fraud, safeguard your investment, and give you peace of mind knowing your residents are trustworthy.
Know the Red Flags: Common Fraud Tactics
Rental scams come in several shapes and sizes, and fraudsters constantly devise new tactics. This is why it’s imperative to remain alert and informed. 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 and present a deceptive financial picture. 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 common problem is renters providing fake references, stating friends or relatives instead of real landlords who could deliver a truthful account of their rental history. These factors can confuse the process of knowing who you are really renting to.
Another sneaky scam that is increasing is subletting without permission. On top of being a lease violation, unauthorized subletting can result in your property being inhabited by occupants who haven’t been vetted or background checked. In some cases, renters could even be subletting your property to others with the intent to earn additional income, which puts your investment at extreme risk.
In some cases, the situation is severe, where fraudsters pose as landlords themselves, listing properties they don’t own and collecting deposits from unsuspecting renters. These scammers have caused significant headaches for rental property owners globally, as it has now become your duty to prove you are trustworthy. If you manage your own properties, this can turn into an even bigger problem.
Recognizing these red flags is not merely a positive beginning; it’s a great tool at your disposal. When you notice suspicious patterns, such as incomplete applications, disinclination to provide ID, or references that can’t be verified, you’re not just identifying a potential scam; you’re putting an end to it immediately.
Tenant Screening Best Practices
Aside from knowing typical schemes, executing a strong tenant screening process can help guarantee that your applicants are who they claim to be. An extensive tenant screening process begins with necessitating a complete application and identification from each adult who will live in the property. Ensure that the details match the information submitted in their application. Next, verify employment and income to guarantee they have the means to pay the rent. Make it a point to call past landlords to check rental history and identify any patterns of late payments, evictions, or other concerns. With regard to tenant screening, keeping a consistent approach is critical. Treat every applicant consistently to ensure fairness and compliance with the regulation. Abiding by these tenant screening best practices permits you to catch red flags before they worsen into major problems.
Background Check Rental Applicants Thoroughly
For contemporary rental property owners, conducting a wide-ranging background check stands out as one of the most effective strategies to protect their property. Credit reports can reveal several warning signs, such as unpaid debts or a history of late payments. A criminal background check can also reveal offenses that may affect safety in your rental or community. Always remember to use a trusted screening service and guarantee you obtain the applicant’s written permission beforehand. A complete background check and rental screening provide valuable insights into the individuals you are allowing into your property.
Stay Secure with Landlord Fraud Prevention Policies
Apart from tenant screening, ensuring safekeeping involves handling applicants’ personal information securely. An excellent method is to utilize an encrypted online portal that renters can use to upload documents. Explore the available alternatives for secure online application systems and choose one that has a good reputation for safety.
In the end, during the application and screening process, it’s imperative to clearly and honestly communicate your policies on security deposits, rent collection, and lease agreements—and do so in writing. This can safeguard both you and your renter in case of an argument, potentially saving you from legal trouble and unexpected financial loss.
Sleep Sound Knowing You’ve Screened Smart
As you can see, taking the proper tenant screening process today can save you from major problems eventually. By following tenant screening best practices, performing detailed background checks, and validating identities, you’ll be better prepared to identify scams before they damage your property.
One of the most excellent methods to thoroughly screen tenants is to employ a professional service. The local specialists at Real Property Management Bay State West are willing to help you attain the peace of mind you deserve. Contact us today or call 413-514-0050 to find out more about our property management services in Chicopee.
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.
