Not all renters are entirely truthful. Shocking, I know!

Recent surveys have shed light on the extent of this issue, revealing that tenant fibs are more common than one might think – and landlords are at real risk if they or their property managers can’t sniff them out.

According to a survey from AgentAdvice (https:// www.agentadvice.com/blog/paws-and-property/), 18% of renters across the United States have lied to their landlords about having a pet. In Florida, 19% of households are hiding unauthorized pets. In Texas, there are 555,125 undisclosed pets.

But it’s not just secret pets. Another survey from Compare the Market (https://www. comparethemarket.com.au/home-loans/features/ rental-confessions/) found that 9.4% of American renters have concealed property damage from their landlord or property manager, while 10% have lied on rental applications. The worst offenders were those between the ages of 25 and 34, with more than 1 out of every 5 admitting to providing false information in the past.

Landlords and property managers are also reporting more dishonesty than tenants are, according to a National Multifamily Housing Council survey (https:// www.nmhc.org/research-insight/research-report/ nmhc-pulse-survey-analyzing-the-operational-impact- of-rental-application-fraud-and-bad-debt/) conducted between November 2023 and January 2024.

A staggering 93.3% of property owners and managers experienced fraud in the past year, an average increase of 40.4% from the previous year. Fake or falsified pay stubs and employment references were reported by over 84% of respondents as the most common type of fraud, followed by misrepresenting information on applications, identity theft, unauthorized occupants or sublets, and finally, fraudulent checks.

To combat this issue, property managers may need to implement stricter screening procedures and extra preventative measures.

Here are some effective examples:

Background and credit checks, verifying paystubs and reference letters can help identify dishonest applicants before they move in – but bear in mind that references can be falsified, too.

Try cross-referencing property records to ensure the owner’s name matches the application. While this won’t always be foolproof (e.g. a tenant could list the property manager’s name instead of the landlord’s), a quick phone call can often clear things up. Similarly, look up an employer’s name on LinkedIn to confirm that it matches the employer listed on the rental application.

Review public social media profiles (within legal and ethical bounds) to gather additional insights about a potential tenant’s lifestyle and confirm details provided in their applications. Keep your approach professional: apply social media checks only during the application process and avoid ongoing monitoring once a tenant is approved and moved in. It’s best to give tenants the benefit of the doubt to avoid damaging a healthy property manager-tenant relationship.

Schedule random maintenance checks (with advance notice as required in your jurisdiction) to look for signs of an unauthorized animal or occupant on the premises and concealed property damage. If you suspect a violation, remind tenants of the rules of the lease with a polite yet firm email.

If a tenant consistently makes excuses for late or missing payments, consider bumping up the frequency of payment reminders. An effective property management platform can automate this process for you.

Despite best efforts, there will always be individuals who try to cheat the system. Stay vigilant for signs of tenant deception and keep up to date with today’s most common fraud tactics. This can help ensure that you find reliable renters who will respect you and your landlord’s property.

Courtesy of Samantha Ferreira is a seasoned, successful and versatile professional in the rental payments industry with a background in conveyancing and IT, and skills in negotiation, analytics, customer service and sales. She is a respected PayProp platform ambassador and trusted expert in the industry. As Head of Client Services at PayProp North America, Samantha is dedicated to creating value for clients and stakeholders while contributing to the growth and success of the property management industry.