Tenant fraud is a growing concern for landlords and rental property owners in Philadelphia and across the surrounding areas. Technology has given us a lot of benefits, especially when it comes to effectively leasing and managing properties. But, it's also made it easier for dishonest people to get away with what they can. If you become the victim of a fraudulent tenant's scheme, it's a problem that can not only lead to financial losses but also cause significant stress and legal complications. You could find yourself fighting to get rent paid or suing for eviction in court. You could place a tenant who has been evicted a number of times in the past without knowing it. One of the most effective ways to protect your investment and ensure a smooth rental process is by partnering with a professional property management company such as Innovate Realty. We use our technology, our market experience, and our ability to identify red flags when we're screening tenants in order to make sure all of the information we collect is accurate and true. Let's talk about why tenant fraud is such a pressing issue and how we can help you avoid it to identify, place, and retain high-quality residents.
Understanding Tenant Fraud
Tenant fraud can take many forms, including:
- Providing false information on rental applications
- Using stolen identities or fake references
- Fabricating bank statements, pay stubs, and other documents
A lot of people in the rental market are having trouble getting approved for rental housing easily. Our income standards require tenants to earn three times the monthly rent in order to be approved. With the rental values so high, it's increasingly difficult for tenants to meet that threshold. So, they may lie about what they earn and create false documents to prove it. These fraudulent activities can result in eviction processes, legal fees, and property damageall of which strain your resources and peace of mind.
The Role of Professional Property Management
At Innovate Realty, we invest in good property management technology and software. We use Appfolio, which has a specific verifying software to make sure that our screening process is consistent and legally compliant, and to make sure we aren't being deceived when we approve a tenant. We're attentive to the threat of tenant fraud. We verify the tenant's credit history not only to assess their financial responsibility, but also to make sure that information on the credit report matches the information they've provided on the application. We verify an applicant's background, investigating criminal records to ensure the safety and security of your property and other tenants. We also verify employment, confirming the tenant's employment status and income to ensure they can afford the rent. Reference checks are also part of our screening process. We contact previous landlords to get a sense of the tenant's rental history and behavior. We also conduct enough research ahead of those reference checks to make sure the applicant has not listed family and friends instead of actual landlords or property owners.
Advanced Fraud Detection Tools
Many property management companies use advanced technology and databases to detect fraudulent activities. These tools can flag discrepancies in applications and identify red flags that might be missed during manual reviews. This can be a huge benefit to rental property owners, and it's a resource that you may find difficult to access on your own. If you want to be sure you're placing a high-quality tenant who has not misled you on any part of the application, work with a management team like ours at Innovate Realty. Navigating the legal landscape of tenant fraud can be complex. Professional property managers have the expertise to handle legal matters efficiently, from drafting airtight lease agreements to supporting landlords in court if necessary. This legal know-how ensures that you are compliant with local and federal regulations, reducing the risk of costly legal battles.
Benefits of Partnering with Innovate Realty
There are many good reasons to partner with our team when you're looking for a tenant and renting out a home. Avoiding fraud during the screening process is perhaps one of the best reasons. Managing a rental property requires time, effort, and attention to detail. By outsourcing these responsibilities to our professional systems, you can focus on other things, knowing that the tenant in your property has been well-screened. There's also the benefit of financial protection. Effective tenant screening reduces the likelihood of late payments, property damage, and vacancies, ultimately protecting your rental income. The cost of hiring a property management company is far outweighed by the financial benefits of avoiding tenant fraud and maintaining a steady rental income. We can effectively serve as a buffer between you and your tenants. This professional distance can improve tenant relations, as issues are handled impartially and efficiently. Happy tenants are more likely to stay longer, reducing turnover and associated costs. Tenant fraud is a serious issue that can have significant financial and emotional repercussions for landlords and rental property owners. You want to make sure you know who is renting your property, and it's important that all of the information they provide is verified in a way that's objective and fair. We understand the struggles of this current rental market. Rents are high, and good tenants are difficult to come by. We find them. And, we verify their identities. By partnering with a professional property management company like ours, you can leverage our expertise, technology, and resources to protect your investment and ensure a seamless leasing period and rental experience. Don't leave your property vulnerable to tenant fraud. Consider enlisting the help of a professional and experienced team. It's better for you, it's better for your investment, and it has an impact on your profitability in the short term and the long term. We'd love to be part of the solution. Please contact us at Innovate Realty. We work with investors of all experience levels in the greater Philadelphia metro area as well as surrounding suburban areas in Montgomery, Chester, Burlington, and Delaware County, to the Delaware River.
