Be careful of these tricks that could allegedly be used to approve a less-than-stellar tenant application.
Creating a Fraudulent Credit Report
The tenant could offer to provide the copy of their own credit report. They could say that they already had it pulled and do not want the credit report to be pulled again. However, the credit report could have easily tampered with using white-out or a copy machine, etc.
A tenant might go to these lengths to secure a residence and may use a tactic of sending it out to multiples of landlords to try to get just one to accept it.
Fraudulent Rental and Employment History
There are several ways to go about procuring fake pay stubs and w-2s. Just look online and you will see tons of results. Although the tenant could potentially be arrested for using such fraudulent forms, they are mostly not pursued and consider the risk to be calculated.
Then the property management company needs to make sure they are dutifully validating and contacting the information provided for rental and employment history. They need to validate that the companies and rental agencies are legitimate.
Cash for Quick Move-In
Some tenants may offer a decent amount of cash, sometimes up to 6 months rent for an immediate move-in. They will want you to skip the screening process and give them the keys asap. This can be very tempting, however, skipping proper screening procedures will end up costing more than having the property vacant for a few more days.
That Old Craigslist Scam
The tenant says they want to rent the property, they send you a cashier’s check for more than the amount owed and ask that you forward the difference to their decorator or moving company. You forward the money, then a couple of days later the cashier’s check bounces and you are out the money you sent.
You find an ideal tenant and they move in. You collect the first month’s rent, but then the second and third month’s rent never arrive and you don’t hear from the tenant. You eventually visit the property and find there is someone else living there. The tenant has posed as the owner of the property and ‘subleased’ it to a new tenant. Now you are out your 3 months rent and have an unapproved tenant in your property and the unapproved tenant is out a few months rent and security deposit that was paid to the original tenant.
Make sure you are using a Lutz Property Management company that has extensive tenant screening processes and never cuts corners.