Whenever we discuss rental scams, most of us picture tenants as victims. But this is not always the case. Property owners are also vulnerable to scams. Tenant scams happen to those landlords who fail to implement the right leasing or renting procedures. These may include faulty tenant screening, leasing or renting contracts, and payment collection methods. These scams come in different forms, costing property owners valuable time and money and risking their business and income.
This article will discuss some common rental scams that affect property owners and managers. We will also be discussing software for property management to protect them from scams.
Common Rental Scams You Should Know
If you are a property owner and want to protect yourself against rental scams, you have to start judging the behavior to look out for potential scammers. Below are the top three common scams that you should pay attention to:
1 False Refunds Scam
In this cam, a tenant will inform you that he has sent you more funds than they owe using a fake cashier check or money order. They will request a refund before even realizing the bank that the check is fraudulent. The fraud tenant may also claim that the bank has made the mistake of the wrong payment amount.
Do not issue a refund. Stop payment on the original check and notify the tenant and tell him to ask for funds in the correct amount. Also, notify the bank that the payment could be fraudulent.
With reliable property management software, you can make online payment norms for your business and can handle each and every payment through a single channel.
2 Lawsuit Scam
Lawsuit scams occur quite commonly when a tenant comes up with a fake reason to sue the property owner or a property manager. Typically, these suits can take months, and in the meantime, you cannot evict the resident, which allows them to live in the disputed property without giving any rent.
Though it can be hard to imagine this situation, the best solution to avoid this is to try to make your tenant contracts intelligently, including all kinds of clauses that can be used against you. Also, a thorough and efficient tenant screening process plays a significant role in avoiding such scams. Property management software can help you find suitable tenants and build strong relationships with those renters who don’t have hidden motives when moving into your property.
Smoke and Mirror Scam
The fraudster duplicates your property listing and lists it for a much lower price in this scam. They aim to use the duplicate listing to scam people showing interest in the listing and take money from them in the name of advance, security deposit, and other fees. If any of your listings are used in scams, it can get you in big trouble. Your original listing could be flagged red and taken down. Also, your account with the listing website can be suspended.
To avoid such scams, always watermark your images to prevent scammers from using them. Also, manage all your listings through property management software, as you can get alerts for duplicate listings.
Now that you know some of the top renter scams, it’s time to take some protective and preventive steps to enjoy a worry-free renting or leasing experience. Though you can work on writing great listings and preventing your images with the company logo or watermark or take care of every payment you receive, it is still difficult to manage everything solely when you have many properties. In that case, Salesforce CRM for real estate is the best solution to manage every property-related task easily and prevent such scams.