There are always risks when leasing a property. One of the biggest risks is choosing the wrong tenant. It’s like allowing a stranger to live on your property and it can be a nightmare if you have a scammer looking into renting your property. Even well-seasoned property managers with established tenant screening procedures can still be a victim of tenant scams, especially those who are taking advantage of low vacancies.

Tenant scams are actually more common than you think. If a property owner doesn’t have any standard process in place, particularly in tenant screening, it’s easier for these common tenant scams to get in the way. To spot the difference between a conscientious tenant and a potential tenant scam, a landlord should first be aware of the following.

5 Common Tenant Scams a Landlord Shouldn’t Ignore

1. Late Rent Payments Scam

These are tenants who have no intention of paying their rent. They will appear as someone who has legitimate reasons as to why they are consistently unable to pay their rent, such as loss of a job or medical bills. While everyone, at some point in their lives, experiences financial problems, these renters have no intention of paying and they won’t until you evict them. And how long does eviction process in Houston take? It can actually take months and this is what the scammers like. They can still stay in the property without paying while waiting for the eviction process to commence.

2. Illegal Sublet Scam

In this scam, the renter will rent out your property to a third party, who has paid a couple of months’ rent to the original tenant. Since you haven’t received any payment, you’re more likely to send a notice and then visit the premises only to find another person living on your property. There are also instances when the tenant will declare an incorrect number of co-tenants or occupants. Most lease agreements will clearly state a certain number of people allowed on the lease, and if there are any additional, additional fees are applicable.

3. Service Animal Scam

Yes, you read that correctly. Not all rental properties allow pets for some reason, but if it’s a service animal then the landlord or property manager can make adjustments as the law require no discrimination when it comes to leasing a property. While property owners have pet fees stated on their lease agreement, some tenants will try to pass their pets as service animals. This can be problematic to you and destructive to your property.

4. Fake Credit Report and Inaccurate Rental or Employment History

Creating a fake credit report and declaring inaccurate rental and employment history is a common method among professional scammers. While these documents can be verified by the property manager or landlord, there are still who are skillfully good at faking or providing false information in their lease application. If you’re not vigilant, or without a standard process of tenant screening, you will surely fall victim to this rental scam.

5. Running a Business from your Property Scam

Residential properties are not zoned for business. However, there are tenants who conduct business in your property, which may involve illegal transactions, putting your property and other legit tenants at risk. Aside from that, you can be penalized and pay a hefty fine even if you’re unaware of what your tenant is doing.

It’s crucial to know the difference between a trustworthy tenant and a scammer in disguise. Even with having the clearest lease agreement, you can’t be 100% certain that a potential tenant is a scammer or not. With the right process in place to screen your tenant, a streamlined process for collecting rent, and a professional to help you manage your property, the likelihood of being scammed is significantly lower.

Do you have any experience in dealing with tenant scams? Please share your experience by leaving comments below. We’d love to hear from you…

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