How’s the market? Rise in rental fraud
Interestingly, applicant fraud in the residential rental market has increased 9 percent month over month since the COVID-19 crisis hit, and this is worrisome because studies show that people who falsify information on their rental application are more likely to cause all sorts of problems. They are more likely to engage in criminal activity, which can damage the landlord’s reputation and value of the property, as well as the value of other properties in the neighborhood. Would you want to buy or rent a home next door to a drug dealer? Neither would most people.
They are also more likely to miss rent payments, damage the property, either through negligence or intentional action, and engage in behaviors that, while technically legal, aren’t appreciated by those around them (and may not be permitted according to the lease agreement). At some point, the landlord is forced to evict the tenant and find a new one, a expensive and time-consuming process. It costs about $750, including attorney’s fees and court costs, and there’s the opportunity cost, too. Opportunity cost is an economics term that refers to the cost of a missed opportunity. Each time a landlord chooses a bad tenant, there’s the opportunity cost of missing out on a reliable tenant who would pay on time and take good care of the property.
As part of the application, it’s common for landlords to ask for character references as well as the name and contact information for the applicant’s current landlord. The problem here is that anyone can serve as a character reference (including someone who owes the applicant a favor), and the current landlord may want the applicant out of their hair, so they’re happy to paint a rosy picture of the tenant.
That’s why it is more important than ever for landlords to take the time required to learn as much as they can about a prospective tenant. Ask for the name and contact information for the last two landlords. Ask whether the landlords would rent to this person again. Ask former employers whether they would rehire this person. If you don’t hear an enthusiastic yes, consider it a no.
By the way, tenants, check out your landlord as well. This should be a two-way street. Ask friends and neighbors what it was like to rent from your prospective landlord. Was the landlord responsive when problems arose? Ask if they would rent from them again. If you don’t hear an enthusiastic yes, consider it a no.
Source: willitsnews.com
Accessibility