5 Common Types of Tenant Scams to Be Aware About

Being a homeowner, wanting to rent a property makes sense for passive income. One wants a tenant who is reliable, responsible, and pays their monthly rent in a timely manner. Someone who doesn’t cause trouble takes care of the property and respects the contact between both parties. That’s not always the case with the tenants, unfortunately. That is why it is essential to be cautious when scanning applicants.

Several people have access to different software which makes it easier to create a fake tenant profile. They may get a photoshopped letter of reference from a non-existing landlord even. Such scams are hard to pinpoint which is why this brief guide will help you to discover common scams. 

Lying about non-existent tenant 

In this scam, falsified information is shared in the application. For someone who has a new property in the soul city of Lahore or any other similar neighborhood, homeowners are careful. They confirm the references by making necessary calls.

Potential tenants may even lie about the co-tenant due to several problems if you are not too careful. If they have mentioned a co-tenant in their application, make a thorough research about it. Confirm their identity and look over the credit score for both.

Before committing to an agreement, add a clause about lying or omission of any information that would terminate their lease immediately and effectively. 

Fraudulent credit details 

Financial scams are one too common. It provides an important insight into the financial stability of the tenant. Hence the reason behind submitting a credit report at the time of application. One may manipulate the document online which is why credit score may be harder to track.

Asking for a credit report is helpful. In case a tenant does not have anything to hide, he will share it without any hesitation. Some potential scammers may play smarter and they may also not disagree or hesitate. This is why you need to pay attention to the account balances – see if they match up. 

Lying about the job 

Thinking the applicant might be lying about their employment? Or something just doesn’t add up? Ask for pay stubs. This is the best way to verify the right information you’re looking for. Know this, there are websites where pay stubs can be falsified. Therefore some of the important aspects to check include: 

  • Whether numbers on the pay stub are rounded? 
  • Whether it looks professional or not?
  • Whether there is any difference between the Os or 0s (zeroes)?
  • Whether social security numbers and other details add up from the application or not?

Any professional accountant will not make any mistakes with the stats. Hence, it is the most eligible way of finding the truth. 

Sometimes, the pay stub is not the issue but the fact that the applicant has lied about their job. It could be relevant to the job description, tenure, or even the salary. Therefore you must verify the employment references. 

Incorrect former landlord reference 

One of the most common scams is incorrect information about the previous landlords. “Oh, I must have mistaken the last digit” or sometimes “The landlord must have moved away”. Either way, if you do not find the chance to speak to the previous landlord, chances are it’s a scam. 

There are some steps that can be taken to prevent this. 

  • Check the provided address for the rental property. 
  • Ask for the utility bills of the previous rental property. 
  • Confirm the names and numbers mentioned as references. 
  • Check the response if you decide to make that call. 

Extra payments are eye-raising 

One may think that an overly enthusiastic tenant pays in advance. This almost never happens. It’s a different kind of scam conjured to gain the trust of the landlords. They may wire you the deposit instantly and more than the agreed amount. Or perhaps they may write a check while requesting to refund the extra amount later on. 

The problem is, it takes weeks for a cheque to bounce. Until then it’s too late for the landowner. When accepting wire transfers, any of the deposit amounts should not be used unless the cheque is cleared. 

What You Need to Do 

For landlords, it is important to be mindful of all the aspects when it comes to leasing a rental property. The best chance to find a reliable source is via referral. This way you can eliminate the risk of fraudulent cases.

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