How can you protect your investment from Rental Scams.
Best Line of Defense:
Landlords need to vet their clients properly, seriously!- Find out as much as you can
- Avoid Fraud
- Check documents are not "altered"
- Match information
- Check social media profiles
- Check paystubs
- Call references and previous landlords
- Check online banking
- Google employer How can you protect your investment from rental scams? Rental scams can leave a real estate investor out of thousands of dollars in loss, rent, or property damages.
The best line of defense: Landlords need to vet their tenants properly, seriously. Find out as much as you can about the type of person you're entrusting to live in your investment. Who commits fraud, and why? The reasons for committing fraud vary as much as the people committing the crime. Some can't afford the rent. Some have no intentions of paying rent, and others want to hide previous financial transgressions. Today, nearly everyone can alter copies of official documents with their phone. Sometimes you have to dig deeper to uncover the scan. Don't get me wrong. We don't always assume everyone's out to pull one over on our clients. But if someone has nothing to hide, they shouldn't get defensive, and you start asking questions. By the way, if someone does get defensive, take that as a red flag and consider denying their application.
Okay, but if the numbers don't add up, addresses don't check out, social media profiles suggest someone very different, ask why. Okay, again, when you're looking at pay stubs, most applicants are honest potential tenants who want to rent your property and pay rent appropriately. However, those few bad apples means you have to keep your guard up. When an applicant submits their proof of income, especially pay stubs, pay close attention to the deductions, the watermarks. Look to see if check numbers match pay stubs.
Look at their bank statements. See if it corresponds with their pay stubs. Other little things that we do to double check tenants. Okay, call their references. Call the previous landlord. Call the previous previous landlord. They will tell you the truth about this tenant. Show up at their home. Make up a reason. Okay, ask them to pull up their online banking in person when you meet them. Drive to their existing work locations. See if it actually exists. Google the employer. Facebook the tenant. This is little things that we also do in order to ensure that we have good tenants.
As a landlord, it's important to be aware of rental scams and how to best protect your investment. Rental scams can take many forms, from fake listings to identity theft, but there are some key things you can do to defend against them.
First and foremost, it's important to vet your potential tenants properly. This means getting as much information as you can upfront, including checking their documents carefully and calling references. You should also check social media profiles and online banking information to verify identities.
Another good defense against rental scams is to be familiar with the market rates in your area. This way, if you come across a listing that seems too good to be true, you'll know it's probably a scam.
Finally, trust your gut. If something feels off, it probably is. Don't be afraid to ask questions and get more information before moving forward with a rental agreement.
?By following these simple tips, you can help protect your investment from rental scams.
