Even experienced landlords can be victims of tenants who are trying to take advantage of the system. Unfortunately, tenant scams are more common than one might expect. When landlords have no effective process in place to screen tenants, collect rent, and manage the property, it’s easier for tenants to try to get away with these scams. Here are five tenant scams landlords should be familiar with and how to avoid them.
False Rental History
When looking for new tenants to fill a vacancy, landlords want to lease to people who have a solid rental history. This generally means that the prospective tenant(s) have not moved around much, have excellent references, and have left on good terms with their previous landlords. If rental history shows that a potential tenant has moved around a lot in a short period of time, it often means that they will repeat this behavior and leave the landlord in the position of having to fill the vacancy again. It could also be a red flag that they were unable to pay rent or comply with lease terms, so they were asked to leave.
For these reasons, problematic tenants with a shaky rental history will provide false information in their lease application. They may give fake contact info for previous landlords and lie about how long they lived at any one address. This is why the tenant screening process must be done very carefully and thoroughly. Always check references, call previous landlords to verify information, and even utilize social media if you can. You always want to lease to honest, trustworthy tenants, so it’s worth taking the time and effort to screen tenants properly.
Lying About Number of Occupants
Some tenants will not disclose the real number of people living in their rental property because landlords only allow a certain number of people on the lease and/or there are additional fees for each person occupying the space. This can cause a number of issues, in addition to potentially breaking fire codes or creating hazards for other tenants. This also adds to the wear and tear on the rental property, making it more difficult for landlords to lease it again without extensive cleaning and repairs.
The best way to mitigate this problem is for landlords to be present and active when it comes to managing the property. If you are not periodically checking in, it’s much easier for tenants to get away with having extended guests or additional roommates without you ever knowing. You can also install security cameras at the entrances of your property to monitor who is coming and going. For landlords who want to make sure the property is managed correctly, and for busy landlords with multiple rental properties, hiring a professional local property management company is the best way to stay on top of each property and your tenants.
Conducting Business on Your Property
As a landlord, you know apartments and other residential buildings are not generally zoned for business. However, some tenants will conduct business on your property under the table to save on having to rent an office. They may also be involved in transactions that are not legal, putting you and your other tenants even more at risk.
When a tenant is running a business from your property, there’s sure to be more people coming in and out of the building than usual, which presents both a security and a safety issue. No landlord wants to run the risk of one of their tenants, or one of their tenants visitors, needing a Las Vegas civil litigation lawyer or Las Vegas personal injury lawyer due to negligence. Additionally, if authorities find out that business is being conducted in a building that is not zoned for business, you can also be penalized and have to pay a fine. Again, landlords should be involved when it comes to managing their rental properties or have the support of a property manager to avoid these situations.
Late Rent Payment Scams
Having to deal with late rent is one of the most common problems any landlord will face. It’s easy to give extensions and be lenient with some tenants, especially if they have a legitimate excuse. However, this does open the doors to being taken advantage of down the road. Some tenants have no intention of paying rent and know exactly how to work the system to avoid being forced to leave immediately.
Landlords should have very clear instructions in their lease agreement’s regarding timely rent payment and should stick to these rules no matter what. It can be hard to collect rent at times if you know your tenant is struggling, but giving in to excuses will only hurt you in the end. This is another way in which a property manager can help. Professional property managers can handle all rent collection, including following up with late payments and implementing further action if the tenant does not comply.
Service Animal Scams
Landlords are required by law to not discriminate when it comes to leasing their property. If a potential tenant has a service animal but you don’t allow pets, you must make accommodations for that person. With that said, there are many pet owners who try to pass their dogs or other pets as authorized service animals just so they can gain access to places where pets are not allowed. This includes apartments and other residential rental properties.
Pets that are not trained as real service animals can cause damage to your property and bring up questions from other tenants who were denied pets. It is important to always ask for a doctor’s note and contact that doctor to verify that the applicant does, in fact, need a service animal. If it is a legitimate service animal, the owner should have no problem producing these documents or letting you verify the information with a health professional.
In general, landlords may have a positive relationship with most of their tenants. Unfortunately, some tenants do try and work the system in their favor and the landlord has to pay the price in the end. Black & Cherry is an experienced Las Vegas property management company that can help landlords avoid these scams with thorough tenant screenings and a streamlined process for collecting rent and monitoring each property. Contact us today to learn more about our Las Vegas and Henderson property management services.
