Tenant fraud has been rising recently, which is not surprising. With the housing market at an all-time high, many homeowners realize they can make a lot more money by renting out their house, apartment, or another real estate on rent rather than simply keeping it empty. You can manage your property on the best Salesforce For Real Estate software if you are looking for tenants. However, if you rent your home to someone, you must know a few things about tenant fraud that could save you a lot of heartache. But before moving forward, you must know what tenant fraud is. Let’s have a look:
Tenant Fraud: What is it?
Tenant fraud is when a tenant attempts to deliberately evade paying their rent and fees on the property owned by their landlord. One of the most common types of tenant fraud is withholding rent and intentionally not paying. It’s important to note that there are different situations in which tenant fraud may befall you. Here are some red flags that these renters scam you as follows:
- Forged Documents:
- Faking Identity
- Avoids Meeting And Contacting
- Incorrect Or Incomplete Contact Details
- Excessive Bills
- Delaying Repairs And Maintenance
Before signing a lease, make sure you thoroughly check the tenant’s details for any potential issues, such as credit issues or past eviction notices. If you find anything that seems fishy, then don’t sign a lease until you have had the chance to confirm everything is in order.
How Can You Prevent Tenant Fraud?
Here are some of the things you can do to prevent your property from being a target for tenant fraud:
1. Tenant Screening:
Screening tenants is an essential part of the rental process. You must confirm the existence of a lease and any other relevant information in writing before you allow a tenant to move in. If the tenant refuses to sign, provides any information about their lease, or acts suspiciously when asked for information, this could be a sign to take note and continue with your interview process. You can also use software to see all the information about them.
2. Payment In Full:
Please ensure the tenants give you a security deposit (refundable once they move out) and a first month’s rent check before they take up official residence at your property. You should also receive a check for the second month’s rent on the first day of their move-in date if it is specified in the lease agreement. Property management software allows you to get online payments from your tenant quickly and on time if you have a property in another city or county.
3. Document Everything:
You should create a file to store your rental documents and tenant information on property management software. You can include records like a rental application form, photos of the property, copies of all signed agreements, copies of any legal documents, and all relevant documents. It will help immensely if you need to take legal action against your fraud tenant and prove them as a cheater.
Final Verdict!
Tenant fraud is rising because of the tight housing market, and you can take measures to prevent it. Reda One is the best real estate management and enterprise accounting software. You can quickly get all documents and keep them in order. Not only this, but it will help you access all the fantastic features that benefit your real estate.
