Tenant fraud is becoming more and more common as the tools for this fraudulent practice become more and more accessible. And while knowledge about this practice is always useful, they do not always safeguard one against the criminal and malicious minds of these individuals. The only way not to become a victim of tenant fraud is through prevention: if you do not rent your property to a dubious individual, you will not suffer from tenant fraud. You can do this by properly screening your potential tenants. Unfortunately, even with a strenuous screening process, it may still prove to be a bit difficult to detect frauds.
Fortunately, screening tenants should be easily with the proper tools and methods, such as the use of a tenant report. Here are effective ways to prevent and detect tenant fraud:
1. Do not be gullible. Many landlords become victims to fraud because they believe everything the potential tenant says. Never take anyone's word as gospel-truth; instead, require a potential tenant to substantiate a claim with the proper documents. But this too can prove to be tricky. A tenant report can clear all doubts in your mind regarding these essential personal facts.
2. Require tenants to complete the application. Frauds usually trick the system by providing incomplete information and intentionally giving false facts. For instance, one can provide a wrong middle initial, and claim it to be a mindless error later on. They know it would be more difficult to trace their records if they information they give about themselves is incomplete. Therefore, require tenants to fill out everything in the tenant application form you give them. Incomplete application forms usually indicate that the person is hiding something.
3. Obtain their credit history. This, of course, is essential in any procedure or deal that would require one to pay a specific amount of money for a set period of time. Since a credit history can reveal whether a tenant had previous financial problems (or troubles paying loans and debts), it is a good indication if he or she is indeed capable of renting your property. This also gives you an insight of what his financial attitude is. Although the tenant that can this information to you personally, it is best acquire it yourself. A tenant report usually has information about one's credit rating, as well as other financial information like banking history.
4. Ask for referrals from previous landlords. But since this can easily be manipulated or arranged (for instance, a tenant can give you a number of friend, claiming that he was his landlord), you should use a tenant report to verify whether or he the potential tenant did stay in that particular residence. This way, you're sure to get authentic referrals-not just some empty recommendation from an insignificant person.
5. Interview your potential tenant-with the information you acquired through the tenant report as reference. You can verify certain areas you find problematic. You can also ask about inconsistencies to the information he gave you.
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