As a rental property owner, you work diligently to protect your property and your income. Yet, rental scams are becoming more prevalent, which is difficult for both renters and landlords. Some are easy to recognize, but other scammers can fool even skilled property owners if they lack a solid tenant screening process.
The great news? Learning and adhering to smart screening best practices can help you avoid fraud, safeguard your investment, and rest easy knowing that your residents are trustworthy.
Know the Red Flags: Common Fraud Tactics
Rental scams come in several varieties, and fraudsters frequently devise new tactics. You must always be alert and informed for this reason. 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 seem bigger than it actually is. Some scammers might even settle 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 issue that occurs a lot is renters providing fake references, indicating friends or relatives instead of real landlords who could give a dependable rental history. All of these can make it difficult 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 cause occupants moving into your property who haven’t been vetted or background checked. In other circumstances, renters could even be subletting your property to others with the intent to earn additional income, which places your investment at extreme risk.
Furthermore, in the most severe cases, fraudsters pose as landlords themselves, listing properties they don’t have and collecting deposits from unsuspecting renters. These scammers have produced headaches for rental property owners everywhere, since it’s now your obligation to prove you are trustworthy. If you mismanage your own properties, this issue can escalate significantly.
Recognizing these red flags is not just an excellent beginning; it’s an incredibly valuable ability. When you observe suspicious patterns, such as incomplete applications, hesitance 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
Besides knowing typical schemes, executing a strong tenant screening process can help ensure that your applicants are who they claim to be. An ideal tenant screening process begins 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. Subsequently, verify employment and income to make sure they can easily cover the rent. You need to call past landlords to check rental history and see if there are any patterns of late payments, being evicted, or other issues. In regard to tenant screening, consistency is necessary. Handle every applicant consistently to ensure fairness and compliance with the law. By employing these tenant screening best practices, you need to catch red flags before they escalate into serious problems.
Background Check Rental Applicants Thoroughly
For today’s rental property owners, a wide-ranging background check is one of the effective strategies to protect their property. Credit reports can display many warning signs, 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. It is critical to use a trusted screening service and ask the applicant for written permission first. An in-depth background check and rental screening will provide you with valuable insights into the individuals you are considering for your property.
Stay Secure with Landlord Fraud Prevention Policies
Along with tenant screening, staying safe also suggests handling applicants’ personal information securely. One of the most effective tactics to do this is to utilize an encrypted online portal that renters can use to upload documents. Investigate options for secure online application systems and select one that has an excellent reputation for safety.
In the end, throughout the application and screening process, do your best to clearly and straightforwardly communicate your policies on security deposits, rent collection, and lease agreements—and do so in writing. This can help secure 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 demonstrated, executing the proper tenant screening procedures today can save you a lot of trouble afterward. By executing tenant screening best practices, doing extensive background checks, and ensuring individuals are accurately represented, you’ll be better prepared to identify scams before they harm your property.
One of the best approaches to thoroughly screen tenants is to recruit a professional service. People who work at Real Property Management Enterprises are eager to assist you in getting the peace of mind you want. Contact us today or call 405-463-0040 for extra details about our property management services in Oklahoma City.
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