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People are getting more creative with scams, and many have infiltrated various sectors. Even the rental industry is not safe from fraudulent activities.. Atlanta has seen a surge in rental application cons, with up to 50% of rental applications being fraudulent.
With such a trend rising in the city, landlords and property managers have to be extra vigilant. Knowing which red flags to watch out for is the first step to avoiding getting scammed during the rental application process.
Key Highlights:
- Rental application fraud is rising in Atlanta, with up to half of applications containing falsified or misleading information.
- Scammers use fake documents, including pay stubs, bank statements, employment letters, IDs, and even high-credit “profile numbers”, often purchased through social media “renter packages.”
- Red flags include inconsistencies across documents, such as mismatched names, addresses, birthdates, or formatting differences that signal tampering or fake identities.
- Employment and income fraud are common, making it essential for landlords to verify company-issued employment letters, check pay stub authenticity, and confirm details with employers directly.
- Behavioral red flags matter too, such as applicants pushing for urgent approval, avoiding interviews, providing low-quality or incomplete documents, or listing unreachable or fake landlord references.
How Does The Rental Application Fraud Con Work?
Scammers realized that you can get approved for a rental application by using fake requirements, such as bank statements, pay stubs, employment verification, and other documents that a rental property owner might require from applicants.
What’s worse is that these are easily accessible through social media platforms. They are referred to as “renter packages,” and they are being sold on TikTok. This allows applicants to present entirely different identities since TikTok users are selling fake IDs as well, along with credit profile numbers that show very high credit scores.
With that said, how exactly can you discern fraudulent applicants from reliable potential tenants? You need to spot the telltale signs of a scam in rental applications.
Signs Of Fraudulent Rental Applications
Inconsistent Personal Information
It’s easy to trip up when the information they present doesn’t match their own. Check across documents to ensure they all bear the same name. Be thorough and look for the smallest differences, like misspellings.
Addresses can also be a dead giveaway. Does the address in the applicant’s ID match the credit report address? If not, ask them why it isn’t. If they give you an explanation, verify whether it’s true or not.
Fake IDs
Not everyone knows where to source fake IDs, and even if they do, they aren’t necessarily foolproof. You can easily compare their ID with yours, looking for differences, such as holograms, format, and fonts. You should also compare the photo on the ID with the applicant.
Most IDs also contain the address and date of birth, which you can cross-check with the supporting documents. There are readily available ID authentication tools or apps you may use, and if you find that the identification is falsified or stolen, inform the proper authorities immediately.
Falsified Employment Verification
Employment verification is crucial in the rental application process, since some landlords are more lenient when tenants can prove that they can pay rent consistently. While this is among the most important factors in the rental application criteria, it is also fairly easy to verify.
Do not trust self-written employment letters, since most companies typically provide company-issued verification letters. If the letter includes a phone number for validation, compare it with the ones that are posted on company websites or social media pages. If they claim to work in businesses without an online presence or physical offices, it’s best to opt for other applicants instead.
Fake Pay Stubs
If your rental property has an income requirement, watch out for fake pay stubs. It’s easy enough to pay them, but it’s difficult to make them look as real as possible. Each pay stub has a serial number, so you can spot fakes quickly if they are consecutively similar.
You also don’t usually see rounded numbers in pay stubs, since payroll systems use precise calculations to determine wages. You should see amounts with cents, or at least random digits in different paychecks. Of course, you should also verify with the company they work for to be 100% sure.
Refusal To Provide Supporting Documentation
The more documents they provide, the harder it is to keep up the ruse. When you do ask for additional supporting requirements, they might start hesitating or giving excuses. Even when they do provide the documentation you ask for, there are issues that come with it.
That can come in the form of delays, low-quality copies, cropped images, incomplete files, or copies instead of originals. Even if the files or documents are genuine, failure to comply is not something that should be tolerated, as this could extend to your lease rules.
Unreachable Previous Landlords
Calling previous landlords is important during the screening process, as it helps you paint a clearer picture of who your potential tenant is. However, some applicants list fake landlord references. Either the people on the other end are their friends, or you won’t reach the number at all.
Search public records or property listings to confirm ownership of the mentioned previous landlord. Ask questions only a property manager or a landlord can answer, like the rent amount, lease end date, property layout, and exact address of the property.
Asking for Urgent Approval
No one is more eager to be approved than fraudulent rental applicants who fear being caught. They might try to pay more than two months of rent upfront just so you would bypass the screening process, which is practically bribery.
They would also avoid face-to-face or video call interviews, as real-time questions can cause them to misspeak. Legitimate tenants typically follow the normal rental application process without urging you to streamline any of the steps.
Fraudulent Rental Application FAQs
What is considered a fraudulent rental application?
- A fraudulent rental application is one where an applicant intentionally provides false, misleading, or altered information, such as fake IDs, fake employment documents, or fabricated rental history, to qualify for a property they otherwise wouldn’t be approved for.
What types of documents are most commonly faked?
- The most commonly falsified documents include pay stubs, bank statements, employment certificates, IDs, and landlord reference letters. With online tools and editing software easily available, these documents can be fabricated to appear legitimate.
What should I do if I suspect an applicant is using a fake identity?
- Verify the ID’s authenticity by comparing it to official ID formats, matching details with credit reports, and checking holograms or security features. If the ID looks altered, request a secondary form of identification or conduct a face-to-face verification call.
Can social media help detect rental application fraud?
- Yes. Reviewing the applicant’s online presence can help verify employment, lifestyle, and location consistency. Significant discrepancies, such as claiming to work for a company they don’t mention online, may indicate fraudulent information.
Is it legal to deny an applicant based on suspected fraud?
- Yes, landlords are legally allowed to deny an application if they have reasonable evidence or documentation that the information provided is falsified. Always document findings to protect yourself from potential disputes.
What should a landlord do after identifying fraudulent information?
- You should decline the application, keep the fraudulent documents on file, and update internal screening records. If the fraud is severe, such as identity theft, you may also consider reporting it to authorities.
How A Professional Can Prevent Rental Application Fraud
Identifying fraudulent rental applicants can be a daunting task, especially since missing key signs can lead to renting to a fraudulent tenant. The good news is that there are professionals in the industry, like PMI Georgia, who have the right tools and resources to spot fake documents and information.
We want to make sure that your rental business thrives, which means that no dishonest tenant will get past the rental application process. Not only will you have fewer problems, but even when issues arise, we will step in and take care of them.
Sounds like a good deal? Contact us and learn more about our services!
