Scammers today have become more sophisticated and continually devise new ways to deceive rental property owners. Some of the most common scams involve forged documents, such as fake pay stubs, fraudulent credit reports, and counterfeit references. These can appear anywhere and are surprisingly easy to uncover online. Read on to learn how you can spot fake documents and stay one step ahead of the fraudsters.
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
While there are reasons to do so, it is risky to accept credit reports directly from applicants. For example, someone might email you a PDF they’ve edited to show higher scores. No matter what the applicant provides, be sure to run your own credit reports through a trusted screening service for all adult applicants.
If a report appears odd for any reason, such as mismatched addresses, inconsistent names, or unusual fonts, it’s likely not the real deal. For example, recently, one landlord noticed a credit report had fuzzy logos and a missing phone number for the bureau. A 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
In addition to reviewing and verifying an applicant’s documents, always make it a point to call previous landlords. Avoid calling only the number the applicant provides. Instead, check the property owner’s name on county tax records to ensure you’re talking to the real landlord. Otherwise, a scammer could have a friend pose as a reference and pretend to be their previous landlord.
Be sure to request multiple forms of ID from every adult who will live in the home and ensure the addresses match those on the rental application. Finally, be sure to use a reputable tenant screening service for background checks. This helps remove the guesswork from verifying employment, credit, and rental history, giving you a clear and dependable assessment of your potential tenants.
Protect Your Property with Smart Screening
Catching fake documents might take extra time and experience, but the peace of mind is worth it. By spotting red flags and verifying the details of each application, you can feel confident your tenants are genuine, easing and reducing your stress, freeing you to focus on other areas of property management.
For help with screening tenants and successful managing your Long Beach rental property, the local experts at Real Property Management Southland are here for you. Our priority is keeping your investment secure, fully occupied, and profitable. Contact us online today or call 562-270-1777.