Guess what? There’s some good news! Grasping and utilizing smart screening best practices can enable you to avoid fraud, safeguard your investment, and rest easy knowing your residents are trustworthy.
Know the Red Flags: Common Fraud Tactics
Rental scams come in various types, and fraudsters continually devise new tactics. That’s why it’s really critical to stay alert and informed. One of the most common rental fraud tactics is identity theft, where an applicant employs someone else’s personal information to pass a background check.
Others might forge pay stubs or bank statements to inflate their income to look higher than it actually 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 after they’ve already moved in. Another usual issue is renters providing fake references, providing friends or relatives instead of real landlords who could deliver a reliable rental history. These can all make it challenging to know who you are really renting to.
Another sneaky scam that’s becoming more popular is subletting without permission. Aside from being a lease violation, unauthorized subletting can result in your property being occupied by occupants who haven’t been vetted or background checked. In certain situations, renters could even be subletting your property to others with the intent to earn additional income, which puts your investment at extreme risk.
There are also some worst cases where fraudsters pose as landlords themselves, listing properties they don’t possess and collecting deposits from unsuspecting renters. These scammers have generated headaches for rental property owners everywhere, since it’s now your duty to prove you are trustworthy. If you manage your own properties, this can become an even greater difficulty.
Seeing these red flags is not only a great starting point, but it’s also a great tool for you to use. When you detect suspicious patterns, like incomplete applications, hesitance to provide ID, or references that can’t be verified, you’re not just identifying a potential scam; you’re actively taking steps to prevent it immediately.
Tenant Screening Best Practices
Along with 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 starts by requesting a complete application and identification from every adult who will be residing in the property. Ensure that the details match the information provided on their application. Subsequently, verify employment and income to guarantee they can comfortably pay the rent. It is a good idea to call past landlords to check rental history and seek patterns of late payments, evictions, or other matters. Consistency is really vital in terms of tenant screening. Treat every applicant consistently to guarantee fairness and compliance with the law. By complying with these tenant screening best practices, you can catch red flags before they escalate into larger concerns.
Background Check Rental Applicants Thoroughly
For today’s rental property owners, an in-depth background check is a perfect approach to protect their property. Credit reports can show several problems, such as unpaid debts or a history of late payments. A criminal background check can also show offenses that may affect safety in your rental or community. Make sure to use a trusted screening service and always obtain the applicant’s written permission first. A full background check and rental screening give you a full picture of who you’re inviting into your property.
Stay Secure with Landlord Fraud Prevention Policies
Besides tenant screening, staying secure also implies handling applicants’ personal information securely. The best way to attain this is by utilizing an encrypted online portal that renters can use to upload documents. Research the options for secure online application systems and opt for one with an established reputation for safety.
To conclude, during the application and screening process, it is important to clearly and transparently communicate your policies on security deposits, rent collection, and lease agreements—and do so in writing. This can be a perfect approach to secure both you and your renter in the event of a discrepancy, possibly saving you from legal trouble and unexpected financial loss.
Sleep Sound Knowing You’ve Screened Smart
As you can see, employing the proper tenant screening steps now can help you prevent some big problems down the road. By adhering to tenant screening best practices, conducting extensive background checks, and verifying identities, you’ll be more prepared to identify scams before they affect your property.
One of the best methods to thoroughly screen tenants is to employ a professional service. The local experts at Real Property Management Endeavor are willing to help you attain the composure you desire. Contact us today or call 636-244-5959 for further information about our property management services in Saint Louis.