Although there are plenty of online scams and in person, we can teach you how to be safe and prepared from tenants scamming landlords.<\/p>\n
Worried that your next tenants might be trying to scam you? Renting your home or business to others requires a lot of prep work.<\/p>\n
While hiring a realtor and property manager can reduce some of the risks, many landlords choose to lease the property themselves for convenience or to save money. From posting your rental listing to reviewing a lease and background information, knowing what to look for is imperative.<\/p>\n
\u00a0<\/span><\/p>\n Scam #1: Counterfeit Check Scams<\/strong><\/p>\n Your future renters appear stellar on paper. They seem friendly in person. They give you a check, which you cash, but then invent an excuse as to why they can’t lease the property.<\/p>\n Trying to be considerate and fair, you issue them a refund. All seems well until their original check bounces, and you are out (potentially) thousands of dollars.<\/p>\n[aesop_image img=”https:\/\/socialcatfish.com\/scamfish\/wp-content\/uploads\/2018\/09\/My-Post-1-1.jpg” panorama=”off” imgwidth=”200″ offset=”200″ align=”center” lightbox=”on” captionposition=”left” revealfx=”off” overlay_revealfx=”off”]\n How to Avoid This Scam:<\/strong> Ask for the first month’s rent and deposit to be in the form of cash, cashier’s check, or money order. Verify this payment immediately by depositing it – in person – at your bank or (*preferred) their financial institution. Dependent on the laws in your area, do not issue any refunds until after you have checked that the money has cleared both your bank and the issuing bank.<\/p>\n Scam #2: Overpayment & Money Wiring Scams<\/strong><\/p>\n A tenant<\/a> paying you too much might seem like a good problem to have. They realize their error and ask for a correction. You send or wire them back the extra funds. Other times, you may receive an impassioned plea from a successful businessman or woman.<\/p>\n They claim to be moving to the area after a lengthy business trip overseas or for a job promotion. They need a home for themselves or their family. They say they can pay you immediately and sign the lease via email.<\/p>\n Then, one of several scams begins:<\/p>\n Either they ask for your bank account information to scam your identity<\/a> and steal from you, or they send you a check. This initial check is fraudulent, but you won’t be aware of this for weeks until it bounces.<\/p>\n In the meantime, they have sent you an overpayment and will ask for the difference back via money wiring. Not only will you lose the wired funds to these scammers, but you’ll also be further delayed renting your property to legitimate paying renters!<\/p>\n How to Avoid This Scam:<\/strong> Only rent to people you or your agent(s) have met in person and verified the identity of (background check, driver’s license, leasing agreement, rental application). You should refuse to rent to a potential tenant 100% of the time if they are out of the area or want to pay by personal check or a suspicious payment form.<\/p>\n Even if they offer you extra money or claim they are desperate to secure housing, do not accept. Overseas scammers profit millions off money order scams annually.<\/p>\n[aesop_image img=”https:\/\/socialcatfish.com\/scamfish\/wp-content\/uploads\/2018\/09\/My-Post-2-1.jpg” panorama=”off” imgwidth=”200″ offset=”200″ align=”center” lightbox=”on” captionposition=”left” revealfx=”off” overlay_revealfx=”off”]\n Scam #3: Fake Information<\/strong><\/p>\n The goal of this type of scammer may be financial or to hide their past. They might be unemployed, be wanted for a criminal matter, or have a little credit score or poor rental history.<\/p>\n How To Avoid This Scam:<\/strong> You can call a company and verify employment before you rent to a tenant. Also, consider asking for a few months of bank statements and check that the deposit history matches that of the pay stubs you have received.<\/p>\n Check that social security numbers match the name of all renters and that state-issued driver’s licenses match the names shown on credit reports. Do not allow tenants to bring a copy of their credit report or background check, as these can easily be edited or altered.<\/p>\n Run their credit report through a respected credit reporting agency. Perform a background check of their web trail, email address, and legal name through Social Catfish<\/a> to help verify authenticity and online reputation.<\/p>\n