Rental Application Process Insights and Identity Fraud

August 15, 2024

by: judy & ernesto andujar

Ensuring the safety and security of your rental properties and tenants is a top priority. One of the most critical stages in achieving this is the rental application process. However, with the rise of identity fraud, it's become increasingly important to implement stringent measures to verify the authenticity of applicants. In this blog, we'll explore key insights into the rental application process and provide tips on how to safeguard your property from identity fraud.


Identity Fraud

Identity fraud is rampant and easier than ever (Photoshop, AI voice impersonation)
Example Story:
Young woman used her mother's identity to sign a lease
Discovered during court proceedings
Importance of verifying identity and trust but verify approach

Key Points for Application Process
Property Debt
Using software to check for property debt
Verify through landlord verification, credit report, and evictions
Automatic disqualification for unresolved property debt
Landlord Verification
Use professional email and phone numbers
Verify through tax records if individual landlords
Importance of positive landlord verification
Be cautious of fake emails and phone numbers
Verify Income
Ask for two different proofs of income (e.g., pay stubs and tax returns)
Be wary of fake pay stubs and fake employer verifications
Use tools like Experian for income verification
Experian's tool provides comprehensive income data

Red Flags and Pro Tips
Red Flag: Avoid allowing applicants to split security deposit payments over several months
Process & Protocol: Follow set processes and protocols before using personal judgment
Pro Tip: Do not allow residents to pay their first month's rent and security deposit with a credit card (risk of fraud)
Example of Credit Card Fraud: Tenant paid rent with a stolen credit card, resulting in chargebacks and loss of funds