Avoid Application Scams

Landlords have had to deal with falsified tenant applications for years and now unscrupulous individuals have upped their game and have become increasingly sly in their attempts to evade background checks and spotty pasts. We wanted to share a few things to watch out for during the application process.

The applicant

Landlords need to vet their applications carefully, properly, and thoroughly. Find out as much as you can about the person you’re entrusting to live in your investment. You can learn a lot from spending quality time on the internet but be cautious not to base any decisions on “personal” information that may be a basis for discrimination.

Who commits fraud

The reasons for committing fraud vary from those who can’t afford the rent, those that have no intention of paying rent, and/or those that hide previous financial offences. If  someone gets defensive, that’s a red flag. Always ask clarifying questions related to their application and keep asking until you’re satisfied. Be careful in your wording if you decline their application to avoid violating fair housing laws.

Bogus paystubs

When an applicant submits their proof of income, especially pay stubs, pay close attention to the deductions and payroll or company watermarks. Check if state and federal deductions match pay stubs and bank statement deposits.

Fraudulent documents

Confirm everything. If an applicant has worked at the same company for five years, but the department of corporations has the entity active for two years, ask why. Dig into court records to verify information from traffic tickets, to divorces, past address, and social security discrepancies.

Fair Housing Laws

Be very careful not to ask for any personal information that may fringe on fair housing discrimination. Depending on the severity of a fair housing violation, hefty fines or legal action can be taken against a landlord in violation. Additionally, the government may also impose civil penalties, fines, and even prevent landlords from managing rental properties in the future. If you have any questions, contact Orange County Fair Housing in Santa Ana.

I hope this was helpful. Feel free to reply with any questions you may have or call me at 949-209-9494 or visit GenuineManaged.com to learn more about us.

With best regards,
Marcel Ford
Genuine Property Management

* We are not attorneys, financial advisors, nor tax experts and the information above we deem to be accurate but is not guaranteed.