How to Protect Your Rental from Fraudulent Applications & Scams

Are you worried that you’re being misled on rental applications?

Fraud and scams are increasing, and that’s due in part to technology making it easier for dishonest people and also because people are feeling desperate as they try to apply for homes that they may not be qualified to rent.

As Sacramento property managers, we want to help you protect your rental from fraudulent applications and common rental scams.

Quick Summary:
- Screen carefully with consistent rental criteria and be cautious of residents who seem too eager
- Fraudulent payment methods are a common way for scammers to confuse you and steal your money.
- Verify all of the information on the rental application.

Applicant Looks Too Good to Be True?

Fraudulent applications often come with red flags that can be easy to overlook, especially when you’re eager to rent out your property. Be suspicious of applicants who:

Offer to pay more than the advertised rent
Are in a rush to sign the lease and move in immediately
Don’t ask questions about the property or lease terms
Provide overly flattering or overly vague responses during interviews

If you encounter an applicant who seems too good to be true, take extra precautions. Scammers often make quick decisions and offer inflated rental payments as a way to secure the lease quickly before you have time to conduct a proper background check.

Watch Out for Unusual Payment Requests

One of the most common ways rental scams occur is through fraudulent payment methods. If an applicant insists on paying by an unconventional method, proceed with caution. Always use verified payment channels, such as checks or online payment platforms that offer fraud protection. If they overpay you and ask for you to refund the overpayment before the check clears, it’s a huge red flag.

Scammers often use fake or stolen payment methods and may attempt to convince you that they’ve paid the security deposit or first month's rent before you’ve even signed a lease. Don’t hand over keys or sign any agreement until you’ve received cleared funds.

Application Fraud: What to Watch For

Stick to your screening requirements and verify any documentation that’s submitted. Pay stubs can easily be created at home, so double-check the details with an employer. If the credit report lists a dozen addresses and none of those addresses are listed on the application as the renter’s previous home, ask about it.

Be wary of incomplete applications, vague references, or applicants who refuse background checks. Also, watch for red flags like applicants who are unwilling to meet in person or not interested in scheduling a showing before they apply.

The foundation of preventing fraud is a solid resident screening process. Never rush through this step. Stay proactive, screen thoroughly, and trust your instincts, and you’ll minimize the risks while ensuring you find trustworthy residents who will treat your property with respect.

If you need help with the application process, we invite you to contact us at Sacramento Delta Property Management. We’ve been working with owners and investors to effectively lease, manage, and maintain investment properties for more than 40 years.

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