An unreliable or dishonest tenant can be downright disastrous for your business. It can result in extensive costs, repairs, extended loss of income, and more problems for the landlord. Here are 5 of the most common tenant scams you need to watch out for.
1. Stealing Appliances
Some tenants aren’t there just to scam you out of rent. You may not even see a single rent payment from these tenants. Sometimes, these people scam landlords by stealing the appliances furnishing the apartment. These are expensive to replace and can result in the property being vacated for longer than you’d like.
This is an advanced scam that affects two people, rather than just the landlord. In this scam, an individual rents the property. When the rental checks stop coming, the landlord goes to find out why. They then find a stranger living in their property. The prior “tenant” has pretended to be the landlord, securing rent payments for 6 months. Then they leave. The landlord is out a paying tenant and the current renter is out a significant chunk of change.
These scams happen when a tenant provides a check that is written for more than the rent. They will then request that the landlord refund the difference in cash. The landlord does so, then they discover that the check is invalid. The tenant has disappeared and the landlord has lost the month’s rent, as well as the amount of money they refunded to the lying tenant.
4. Taking a Mortgage Out on Your Property
Though this scam is difficult for scammers to pull off, it can put the landlord in a difficult situation. If scammers can find the right information, they may be able to take out a mortgage on the property. The best way to avoid this is by making sure that your personal information is secure and protected.
5. Hiding Damage
Another way tenants can scam landlords is by hiding damage before they move out. This can lead to the damage going undiscovered until after the security deposit has been returned. It can be difficult for the landlord to acquire compensation after this point.
Dishonest tenants can create extreme problems. Here at Keyrenter, we have a 14-point tenant screening process designed to prevent these problems from occurring. To learn more about how we can help you avoid tenant scams, contact us at Keyrenter in Metro today.