An increasing number of applicants are using fake identities to secure leases, according to a report by real estate data firm CoreLogic. The report cites common reasons for the fake identities, including trying to live rent free until evicted and hiding poor credit, criminal history, or other reason that would make an application unattractive.
Property managers and landlords should be on the lookout for these four types of fraud:
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- Synthetic identity fraud: The report notes that this is the fastest growing type of identity-related fraud. The applicant creates an entirely new fake identity from multiple stolen sources.
- First-person fraud: The person who applies for the lease uses his real identity. However, he is not the person who moves in.
- Third-party fraud: The person who applies for the lease uses a stolen identity.
- Identity manipulation fraud: The applicant slightly changes some information, such as using a different birthday, to make it difficult to match the applicant with his true identity.
There is no foolproof way to guard against all types of identity-fraud scams. But with diligent and consistent tenant-screening practices, landlords and property managers can avoid many potential traps.
important question :
how effective are tenant check services detecting these frauds?
I recently received a phone call and the guy was calling to get an application for one of our properties. They were going on and on about how much their client loved the house. They were going to submit their application for them. Then in an oh by the way comment, these clients are “pre-qualified”. I told the caller that we would still do our standard but detailed background search on each individual above 18 years old living in the house. It wasn’t too long after that they hung up…lol
I had a Lease Listing that an Agent supplied the Application, Credit check and Background report. It all checked out. We executed the Contract, Got the Deposit and !st Month Rent and placed the Tenant. One month later my Landlord Client called and tells me that Rent has not been paid and now there are unauthorized persons and a dog living in the house. The neighbors are complaining to the Landlord that there is all kinds of activity going on at all hours. I call the Tenant’s Agent and he answered once and assured me that he did all of… Read more »
Sorry to hear all your troubles, but you as a Listing Agent is your responsability to verify and check credit reports and background check up and checking if the person mentioned on the application is the real owner of the property, I look on the public records and if they mention is a Management Company I request their Business ID etc. Also I do not accept an applicantio with cell phones of the supervisors! I always check web sites for the work place and call that number. I do not trust, now with photoshop anything is possible, you as a… Read more »
Stuart, I hope you reported the agent and broker to TREC. I was just reading complaints against agents for this very same reason! It is totally against TREC policies.
This is why you need to be running your own background checks and reports as the listing agent.
YOU as the listing agent should be running your own report for this very reason! They prob gave you a fake report.
Report the Broker and his agent to the Local Real Estate Board that they belong to and also the State Real Estate Commission
Let us all know who this agent is so we can avoid this person. Thanks
Thanks for all of the good advice… All lessons learned for sure. The hardest lesson was that a fellow Realtor Agent AND Broker would do and then condone such a thing. I would love to name them but my legal war chest is too thin. But LET ALL AGENTS learn from my bad experience and mistakes! Remember… an experienced Leasing Agent was helping the Tenant with the falsifying process… so most of the info was coming together… it was pretty slick. The Tenant had her own place of business and that checked out. Her business Landlord gave her a thumbs-up.… Read more »
You never stated the name of the Agent nor the Broker so we can avoid them. Thanks
I have had 2 personal properties for lease this past year and had some disturbing circumstances. One home was listed and I received a phone call from a gentleman that said he had found our home for lease. When he called the number to inquire about it the party told him they would send pictures but they were tied up and couldn’t show him the home. They were going to send him a lease to sign and ready to take his money. He got suspicious , did research and was able to locate me. I called the police but they… Read more »
I rented a house to a couple and their two children with a one year lease…after a few months they quit paying rent…we eventually got them evicted and found out they never lived there and were renting it to their Mother…can we sue them for tenancy fraud?
I’m trying to do research on a property owner, that wants to rent us a property.
Great post on common fraud schemes found in Texas. I am pleased to see such points raised here as it is an area of law I know little about, but your post spoke volumes on. Best to you in 2021, Darren Chaker