Rental application fraud is on the rise. 93% of multi-family property owners believe rental application fraud is their number one challenge. 73% of property owners detect application fraud after the tenants move in (aka, when something goes wrong). The most common forms of tenant fraud include:

Applicants may provide fake pay stubs, exaggerate their income, or use forged employment verification letters. This is done to meet the income requirements for the rental property.

Prospective tenants may provide false landlord references or friends posing as landlords to give them glowing reviews. This helps cover up poor rental histories, evictions, or other red flags.

Some applicants use stolen identities to pass credit or background checks. They may use someone else’s name, Social Security number, or other identifying information to hide their own bad credit history or criminal background.

Tenants may submit doctored credit reports that show higher credit scores or omit derogatory information such as missed payments, evictions, or bankruptcies.

Tenants who do not meet financial qualifications may use fake or unqualified co-signers or guarantors on their applications, sometimes even submitting forged documents for them.

Applicants may lie about how many people will live in the rental unit, often underreporting the number to meet property occupancy limits. Some may also try to hide the presence of pets.

This can involve altered utility bills, forged identification, or even fake tax returns to strengthen their application.

Some tenants apply for multiple rentals simultaneously, move in, and skip out after paying only the first month’s rent and security deposit, leaving the landlord without further payment.

Tenants may omit or provide false details on their rental application to hide past criminal activity or pending legal issues that would disqualify them.

After securing a rental, some tenants sublease the unit without the landlord’s consent or knowledge, violating the lease terms and often leading to higher wear and tear on the property.

Thorough background checks, verification of documents, and speaking directly to previous landlords and employers can help landlords and property managers prevent fraud. Of course, you may choose to hire us, and hopefully, you will avoid these hassles.

Contact Summit Property Management Today!