It’s every landlord’s nightmare: discovering you’ve been scammed by a tenant. From fake pay stubs to fraudulent rental listings, con artists are becoming more sophisticated, leaving landlords financially exposed and emotionally drained.
At Verandah Properties, we’re seeing a sharp rise in fraud attempts across the rental market — and it’s one of the biggest reasons many owners decide property management is “too much trouble.” But with the right safeguards, you can reduce the risk dramatically.
The Scope of the Problem
93% of landlords report encountering fraudulent tenant documents.
84% have uncovered false income or employment claims.
6.4% of rental applications in 2024 were identified as fraudulent, according to fraud-detection firm Snappt.
Fraudsters are no longer just slipping through the cracks. They’re using forged pay stubs, altered credit reports, and fake employment letters to get into rental homes. Mom-and-pop landlords who own single-family homes are especially at risk, as they don’t have the resources that large apartment operators do.
The Most Common Scams
Career Scammers: Some tenants make a business out of fraud, repeatedly applying with false documents, bouncing deposits, and skipping rent.
Fake Landlords: Fraudsters post properties online, collect deposits and rent from unsuspecting renters, and vanish. Sites like Craigslist and Facebook Marketplace are especially prone to these scams.
Professional Tenants: On the surface, they look great on paper — but once in, they refuse to pay rent, exploit legal loopholes, or even damage the property while living rent-free.
Why It’s Getting Worse
AI Tools: Scammers now use AI to create near-flawless fake documents.
Regional Hotspots: Cities in the South — Atlanta, Houston, and Dallas/Fort Worth — lead the nation in application fraud rates.
Desperation in the Market: With housing demand outpacing supply, fraudsters are targeting both landlords and tenants in increasingly creative ways.
How Owners Can Protect Themselves
Strengthen screening: Verify IDs, bank statements, and employment directly. Use fraud detection software whenever possible.
Watch for overpayment scams: If a tenant “accidentally” pays too much and asks for a refund, it’s a red flag.
Prohibit subleasing: Keep control of your rental listings to avoid fraudulent re-postings.
Watermark photos: Make it harder for scammers to steal and re-use your property photos.
Use secure payment methods only: Avoid wire transfers, cryptocurrency, and gift cards.
Why Professional Management Matters
The truth is simple: scammers prey on landlords who don’t have strong systems in place. At Verandah Properties, our layered screening processes, fraud-detection tools, and strict lease enforcement standards create a level of protection individual landlords simply can’t replicate on their own.
We know the tricks scammers use — and we know how to stop them before they ever get through the door. And if something does slip through, we have processes, vendors, and legal partnerships to resolve the situation quickly while protecting your financial interests.
Final Thoughts
Landlords often shortcut screening when they’re desperate to fill a vacancy. Unfortunately, that’s when scams hit hardest. Strong verification, professional management, and consistent processes aren’t just “nice to have” — they’re your best defense.
Don’t face scammers alone. Partner with Verandah Properties, and let us help you protect your investment.
📞 Contact us today to learn more about how our property management services can safeguard your rental property.