Scammers are everywhere these days. These deceitful people can come in all forms and sizes that you can no longer be 100% sure when trusting people. Some scammers prey on their close friends and relatives because they have somehow built trust over time. But some prey on innocent strangers and businesses.
As a rental agent or landlord, you should be wary of different scams in the rental industry. Here are a few known rental scams to look out for and how you can avoid them.
Fallacious Rental History Verifications
Rental history is one of the most valuable references you need when you conduct a background check on a potential tenant. It is difficult for bad tenants to apply for new housing when they have a record of unpleasant behavior in their previous rental residence. That is why one of the most common tenant scams is when those bad tenants would give false rental history. They would also provide fake landlords as references.
How to avoid the scam: Compare the previous properties they claim they rented and see if they can qualify given their credit report. You can also check their social media and look for photos of them in those properties. You can also ask them for previous utility bills under their name.
Tactics to Prolong the Eviction Process
There are different rules regarding tenant eviction, such as the grace period given to evicted tenants to vacate a property. It usually depends on the offense. Some sly tenants try to delay their eviction through acts that may reset the grace period. For instance, if they are being evicted for non-payment of rent, they would offer to pay partial rent halfway through the grace period. Accepting partial payment would then reset the clock on the eviction.
How to avoid the scam: Know the tenant eviction laws. Knowing the different ways a tenant can reset the eviction period is vital. It often varies on the type of offense.
Rental applicant will not be the actual tenant
This scam happens when the applicant is just applying on behalf of an acquaintance. For instance, a person wants to rent a property, but he is sure his application will get rejected because of an issue with his background (e.g., history of non-payment, low credit score, etc.). What he will do is ask a relative or a friend who is qualified for a rental to apply on his behalf.
How to avoid the scam: First, the rental agent must get confirmation from the applicant that he will be the one staying on the property and that you will not allow unauthorized or undeclared occupants. There should also be a specific clause in the lease agreement that states who is allowed to occupy the unit. The leasing contract must also have clauses relating to subletting and having roommates.
Declaring Pets as Service Animals
To avoid paying fees like pet deposits or pet rent, some tenants would declare their pets as service animals or emotional support animals even if they are not. They would create fake doctor’s letters that certify their pets as service animals with forged signatures and logos.
How to avoid the scam: Verify if the doctor’s note is legitimate. However, you have to do this carefully. Housing laws protect individuals with special needs from discrimination when applying for housing. You can’t deny the application just because of a hunch.
Send a letter to the doctor who issued the service animal note to request verification. Attach the actual note in your letter. Do not call the doctor’s office directly because you may get in trouble for trying to violate a patient’s privacy. If the note is legitimate, the doctor wouldn’t have an issue verifying it.
Scammers can only succeed if we let them. They can try, but if you practice due diligence and master the skill of detecting scams, you can avoid losing your money, time, and peace of mind. That skill would come in handy when you publish a listing on property listing platforms like Padleads because when you receive tons of applications, you can weed out the scams.