It is not easy to analyze all these items. Unscrupulous tenants have tricked many landlords to get fake pay slips or credit reports. These frauds are more common than you might imagine.
Below is a survey taken by members of Small Landlords Ontario (SOLO), which illustrates the problem:
False or misleading information could cause damage to your rental business. Rent income could be lost if the tenant doesn’t pay rent. Tenant who fails to pay rent can cause your rental income to drop. It is crucial to be able to recognize and avoid tenants submitting false applications.
This article will provide tips and tricks to identify fraudulent documentation. We’ll also show you how you can get reliable, objective and credible information to screen tenants.
Why tenants falsify documents and why it’s so simple for them
Because of ever-increasing living expenses, less people can afford to buy a home. This is driving up rental property demand. The rental market has become extremely competitive.
Many people who rent do not have a good credit rating. Some people are low-income or have inconsistent income. Some people have had conflicting landlords in the past. These traits can make it difficult for a person to obtain a tenancy. To If tenants do not comply with the landlord’s requirements, they may feel motivated by false documentation.
It’s also easier than ever for tenants to modify or create documents. The technology is simple and inexpensive to use. The technology is becoming ever more sophisticated, as you can see in the video.
Anyone who doesn’t have the skills or time can hire someone to do it. It’s easy to find people who will falsify paperwork online for a fee.
Fake Common Rental Application Documents for Tenants
An ill-informed applicant may alter or forge documents. These are the easiest and most common ways to spot a fake.
Credit report
The credit report is an important document that landlords review to evaluate applicants’ ability to manage debt and pay bills. To make their credit reports more appealing, some tenants might try to modify them.
You can easily edit your credit report by copying images of sample reports online and merging these with your own. They can also make any changes they need to their credit report using software programs such as Microsoft Word, Google Docs and Acrobat DC.
Check the following features when reviewing your credit report, especially a scanned PDF or hard copy. These may indicate that it is fake.
Pages not found
Pages that are cut off
Pages that are not in the correct order
Details such as address and name may not be consistent with information on other documentation provided by the tenant.
Inconsistency between the font and the user
Check spelling, grammar and punctuation for errors
Let’s say you want to review a PDF copy of your credit report that you downloaded from an email. Here’s another option:
Open the document, and click on “File” Then, select “Properties”
Click the “Document Properties” Tab
Check the date/time to determine if anyone has changed the document since its creation.
These details may not be visible to you because they aren’t secured (meaning that someone could remove them).
Sometimes, it is difficult to tell if a credit report has been authenticated. It is best to obtain a credit report from an approved third party source. This will make sure that you don’t get scammed. It is never wise to accept credit reports from tenants directly.
SingleKey can provide a background check and credit report for tenants in just five minutes.
Pay stub
To verify income, it is common to ask for a pay stub. Fake pay stubs are also possible, much like credit card reports.
Tenants can create a fake paycheck stub using many online applications, which are usually free. Online tools let tenants create a fake pay slip by entering their name, address and company name.
Incorrectly positioned numbers or writing[]74020000.
Here are some signs that could indicate a fake pay slip:
Net pay is a whole number like $4,000 which, after accounting for deductions is unlikely to be true
Pay stubs are often missing important details, such as the address of the employer.
No company logo
Incorrect math, for example: the net pay relative to gross is too high
Check spelling, grammar and punctuation for errors
Numbers or writing that is not in alignment
Fonts that are inconsistent, uncommon, or blurry
Details on the stub do not match those on any other documentation the tenant has provided.
Fake Paystubs made in a hurry with poor-quality software or without proper documentation will be flagged as suspicious and stand out. Others may appear legitimate. You might call the employer to confirm that the applicant is working.
You should also ask the applicant for a few months’ worth of bank statements. The documents may have been altered to increase their earnings. This is true even if the applicant works for the company named on the pay sheet. Check their bank statements to verify if there are discrepancies in earnings or money they’ve deposited. You can also verify that the pay dates and frequency match on their pay slips.
The best way to confirm the authenticity of a pay slip is to obtain a background and credit report from a third party.
Driver’s License
A driver’s license will be one of the most frequently presented pieces of government-issued identification that tenants will present. Tenants may be able obtain a duplicate driver’s licence in the same manner as they can get paper documents. These fake cards are nearly identical to real ones.
Holograms
Photos printed laser
Embossment
Microbiology
Barcode scanner
What clues can you look for to tell if a driver’s licence is genuine? You should be able to examine your driver’s license in person. These are two tips to help you get started:
Take a look at the thickness of your photos. It may be possible that someone has added a second image to the original if it is thicker than the surrounding area.
Compare the consistency of the letters and numbers. Someone may have made a modification if the thickness or colour of one character is different from the other.
It is important to be familiar with all security features associated with licences issued in your provincial jurisdiction. Any anomalies are easily identified.
An example: A driver’s licence in Ontario has special inks which can be seen only under ultraviolet light. There are also raised letters on the driver’s license number, date of birth, and driver’s license number.
A soft copy of the driver’s license can be obtained from a third party source that issues background and credit checks on tenants. This report can be compared to the information on applicant’s driver’s licence.
Our Last Thoughts
If you are in the rental industry, it is common to review documents from potential tenants. Tenants have the ability to access fraudulent documents. Tenants can access fraudulent documents easily. Therefore, it is crucial to review PDF files and ID cards carefully.
If this sounds overwhelming and a huge waste of time, we are not judging. After all, you’re a landlord, not a detective!
SingleKey is a trusted third party source that provides the information you need. This allows you to avoid dealing with fake documents.
SingleKey understands how important accurate and reliable background and financial information are for landlords. We have created an easy-to-read Tenant report that will provide you with all the information you need to make a decision about whether or not to approve an application.
Equifax credit report, including full credit score
Social media check
Public document scanning of more than 200,000 databases around the globe
Get a free sample or order one for your next tenant screening. Once you have submitted your information and paid the fee, your report is available within five minutes.
