Landlords can also fall victim to rental scams just like renters do. We'll show you how to avoid some of the most common ones.

Scams in the Tenant Screening Stage

It's best practice to screen all applicants over the age of 18 to get a good idea on the backgrounds of your applicants. Here are a couple ways that a tenant may try to hide their information:

• Providing their own credit reports - If you allow your applicants to provide you with a copy of their own credit check, then there's a possibility that your tenants will alter their report to hide a bad credit history. An easy way to avoid this is to run your own credit and criminal background reports. Landlords and property manager can sign up for software that offers free credit reports for landlords, which can be more cost-effective in the long run.
• Forging paystubs and W2's - There's a thriving business in this type of forgery. A couple of phone calls can clear up any misgivings and will tell you if that employer is real, and if your applicant actually works there.
• Giving false references - At the very least, every landlord expects that they might be calling a friend or family member that's sure to vouch for the renter. Calling references is the best way to find out if your renter is telling the truth and can indicate whether they are leaving their former residence in bad circumstances.

Payment Scams

Be wary in your transactions and look for these common scams:

"I can pay 6 months of rent upfront" - What could be better than guaranteed rent? As good as this deal sounds, it's possible that your tenant came into that money by less than reputable means and may not have a steady job to pay for rent for another 6 months.

"My employer is paying me to relocate, so I can give you a cashier's check" - The second part of this scam starts when you go to deposit that employer's check. The amount won't be quite right; it will be more than you requested. The applicant will ask you to send the extra amount to someone. Soon, you'll discover that the check wasn't real and that you just sent someone money that you'll never see again.

Protect yourself by waiting for checks to clear and only taking checks in the correct amount.

The Switcheroo

You finally filled that vacancy and have the first month's rent safely in your account. The second month rolls around and the rent payment hasn't shown up and you can't seem to get a hold of your tenant. You go to the property and a stranger opens the door, with no idea who you are.

The first tenant was a scammer who turned around and leased your property out for six months, taking the second renters payments and pocketing them. The worst part about this scam is that both you and the second tenant lose money on the situation, since they won't be willing to pay another rent payment to you.

Checking in on your property and maintaining communication with your occupants can prevent this situation from happening. 

If it sounds too good to be true, then it probably is. Trust your gut, and do a thorough screening, including a tenant credit report, a criminal background check, and an eviction report. It can help prevent these scams and save you a headache in the long run.