When it comes to protecting your rental property, your best defense starts with careful tenant screening. Unfortunately, fraudulent rental applications can leave landlords incurring thousands of dollars in unpaid rent and property damage.
Today’s Scammers are more sophisticated than ever, constantly finding new ways to trick rental property owners. The most common scams often use forged documents, such as fake pay stubs, altered credit reports, and made-up references. These can show up anywhere, yet with the right skills, they’re surprisingly easy to detect online. Keep reading to learn how to spot fake documents and stay ahead of scammers.
Common Fakes: What Landlords Need to Watch For
There are many different tricks that rental applicants may use to try to fool you. One of these is creating and submitting fake pay stubs that falsify their income. For example, an applicant might create a phony stub using a free online template that appears professional at a glance. Similarly, fake credit reports can be made using old or altered files. Some applicants even invent landlords or provide fake phone numbers to “references” who cover for them.
Examine any document a renter submits carefully. If you see inconsistencies in income amounts, dates that don’t add up, or references that can’t be verified, you may be dealing with a fraudulent rental application.
Verifying Employment: Your First Line of Defense
A good rule of thumb for rental property owners is to never accept employment details a renter gives you at face value. For example, if an applicant says they work for “ABC Marketing LLC,” try to find the company online yourself.
Call the main business line and ask for HR or payroll to confirm dates of employment and salary. If the applicant gives you a personal cell phone for their “boss” or can’t seem to provide details of their employment, that’s a red flag.
Pro tip: Look up the company on LinkedIn to confirm its existence and verify the details provided.
Detecting Fake Credit Reports and Financial Info
Although there can be reasons for it, accepting credit reports directly from applicants carries risks. For instance, they could email you a PDF they’ve altered to show a higher score. Regardless of what the applicant provides, always run your own credit reports through a trusted screening service for all adult applicants.
If a report shows anything unusual—like mismatched addresses, inconsistent names, or odd fonts—it’s probably fake. For instance, a landlord recently spotted a credit report with blurry logos and a missing phone number for the bureau. One quick call to the agency confirmed the report was fake.
Spot Fake Pay Stubs Like A Pro
Fake pay stubs can look convincingly authentic, but many still have flaws that a sharp eye can detect. For example, watch out for perfectly round numbers every pay period. That’s rare in real life. For instance, if every check says “$1,500.00” with no variation, dig deeper. You can also verify the employer’s tax ID number or call the company’s payroll department to confirm the pay rate.
Another way to verify pay stubs is to compare them with bank statements. If an applicant claims to earn $3,000 per month but only deposits $1,200, that’s a sign that something isn’t adding up.
Extra Verification Steps for Confident Screening
Beyond requesting and verifying an applicant’s documents, it’s vital to always call previous landlords. And don’t just call the number the applicant provides. For example, look up the property owner’s name on county tax records and confirm you’re speaking to the real landlord. A scammer might have a friend pose as a reference otherwise.
It’s also important to request multiple forms of ID for each adult who will be living in the home and ensure the addresses match what’s listed on the rental application. Finally, be sure to use a reputable tenant screening service for background checks. This can eliminate the guesswork involved in verifying employment, credit, and rental history, providing you with a reliable and comprehensive assessment of your potential tenants.
Protect Your Property with Smart Screening
Spotting fake documents may require a bit of extra time and experience, but the peace of mind it brings is invaluable. By watching for red flags and verifying the details of each application, you can rest assured knowing your tenants are who they claim to be, thereby reducing your stress and allowing you to focus on other aspects of property management.
For assistance with screening tenants and effectively managing your Arlington rental property, the local experts at Real Property Management Engage can provide valuable support. We are committed to keeping your investment secure, occupied, and profitable. Contact us online today or call 214-257-0101.
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.
