Learn about the top tenant scams and how you can avoid them
Prospective tenants are commonly targeted by con artists posing as landlords or property owners. But what you may not know is that the landlords and property owners themselves are just as susceptible to being scammed.
Continue reading as we explain the common types of tenant scams, then learn how a property management company can protect you, the property owner or investor, from them.
What are tenant scams?
A tenant scam occurs when a renter or someone pretending to be a prospective tenant lies in order to gain an advantage from the landlord or property owner.
What are the common types of tenant scams?
Tenant scams usually either attempt to circumvent the rules of the lease agreement or make some kind of financial gain, or both. They can occur while the tenant is residing in your property or even before the tenant has officially moved into their unit.
Common tenant scams include:
- Fraudulent documents
This occurs when a tenant creates fraudulent documents for their rental application. This can include falsified credit reports, prior rental history, employment history, references, and more.
- Lying about occupants
In some cases, tenants may try to lie about co-tenants or even change the occupant of the apartment without letting the landlord know––all of which can lead to liability and legal issues.
- Financial scams
In some cases, a prospective tenant could send in an invalid check for more than the move-in amount, and then ask the landlord to reimburse them with the amount left over. By the time the landlord realizes the check is fraudulent, the con artist has got away with the money.
Tenants may also move into the unit and stop paying rent with no intention to continue doing so. Since the eviction process can be lengthy, they take advantage of this and stay in the rental for free throughout the process.
Read more:
3 tips to prevent tenant damage to your investment property
How can a property manager protect me from tenant scams?
Owning and running a rental property can be a very involved process. It’s often overwhelming to those who don’t know the ins and outs of the logistics and legalities of property management.
A certified, experienced property management company will be well-versed in the regulations, legalities, and protocols of property management. What’s more, they are trained to easily spot tenant scams and know how to expertly navigate these situations on your behalf.
How can Rental Heroes protect you against tenant scams?
As an accredited, experienced property management company and property investors ourselves, we understand the ins and outs of property management and will be there for you every step of the way.
Along with minimum income and credit score requirements, our thorough tenant screening process also includes:
- Background checks
- Credit checks
- National eviction history checks
- Employment and income verification, and
- Prior rental verification.
If you have any questions about our tenant screening process, our team will be very happy to answer them.
Ready to learn more?