Understanding Fraud in Rental Applications: A Growing Concern
In today’s rental market, fraud by applicants is an increasing issue for property managers and landlords. Among the most concerning tactics are the use of fraudulent Social Security numbers (SSNs) and fake landlord information, both of which can create significant challenges in identifying trustworthy tenants.
The Rise of Fake SSNs in Rental Applications
One of the most common forms of rental fraud is the use of fake or stolen Social Security numbers. Applicants may use these to fabricate credit histories or conceal criminal records, poor history and most importantly hiding evictions. This tactic can make it difficult for landlords to accurately assess the tenant’s financial stability, posing risks such as missed rent payments or even property damage.
Fake SSNs are typically sourced from identity theft or purchased through underground markets. For property managers, this means that a simple credit check may not be enough. Implementing more comprehensive tenant screening measures, such as Social Security verification tools, can be crucial in detecting fraudulent applications early in the process.
Fake Landlord References: A Deceptive Tactic
Another deceptive strategy is providing fake landlord references. Fraudulent applicants may list friends or accomplices as former landlords to receive glowing, albeit false, rental histories. This can lead to approving tenants who might have a history of property damage, disruptive behavior, or repeated evictions.
To combat this, property managers should independently verify landlord information, cross-check addresses, and even conduct in-person visits if necessary. Also, contacting landlords through publicly available records rather than applicant-provided numbers can help ensure that the reference is legitimate.
How Property Managers Can Combat Rental Fraud
Invest in Advanced Screening Tools: Use services that offer comprehensive SSN and identity verification.
Cross-Verify Information: Don’t rely solely on the information provided by the applicant—validate it through official records and third-party databases.
Stay Updated on Fraud Trends: Fraud tactics evolve, so staying informed about new schemes can help property managers spot red flags early.
Maintain Clear Policies: Make applicants aware that any misrepresentation will result in immediate disqualification.
By implementing stricter screening measures, property managers can reduce risks and ensure safer, more reliable tenancies. As rental fraud continues to rise, staying proactive is the best defense.
Please contact ELDA Management Services for your source of information on how to best combat this ever growing issue. If you have any questions about this topic, please contact us at management@eldams.com or call us at (281) 894-8659 and select option 3 to speak to one of our owner representatives.
