FAQs Landlord Fraud

Answers to the most common questions.

• 1. What is a landlord fraud?
• 2. What is tenant fraud?
• 3. What are some signs that I might be dealing with a fraudulent landlord, or someone pretending to be a landlord?
• 4. What are some signs that I might be dealing with a fraudulent tenant?
• 5. What are my rights & responsibilities as a tenant?
• 6. What are my rights & responsibilities as a landlord?
• 7. How can I prevent being a fraud victim?

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1. What is a landlord fraud?

A. It is a fraud committed by a landlord against tenants or prospective tenants. There are many ways in which a landlord can commit fraud, it involves the landlord obtaining money from tenants illegally by being deceptive, by making false statements, by lying, cheating etc. Criminal intent has to be proven in order for the crime to meet criminal standards, there is also civil fraud and if a landlord has obtained money fraudulently from a tenant, then civil courts can remedy the situation and the standards of proof are far less than the criminal standard which is proof beyond a reasonable doubt.

http://legal-dictionary.thefreedictionary.com/fraud this link gives a clear explanation of fraud. You will not see landlord fraud as a specific category, landlord fraud by definition would be a fraud as defined in this link.

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2. What is tenant fraud?

A. It is a fraud committed by tenants or prospective tenants against landlords. The above noted definition applies. A tenant might move in with the intent of not paying rent and staying until evicted. A prospective tenant might not be truthful about his/her identity, or the information on the rental application. They might write an NSF knowing that there are no funds in their bank account for the rent or security deposit.

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3. What are some signs that I might be dealing with a fraudulent landlord, or someone pretending to be a landlord?

A. Some signs:

• The story is too good to be true. i.e. rent is really cheap
• Meets you at someplace other that the rental or outside the rental, doesn't show you it.
• Rushes you and wants cash only; all legitimate landlords should have a bank account that they deposit rent funds to.
• You have to make your mind up right now or it will be gone, I'm meeting someone else in 15 minutes!
• Fraudsters will refuse to show I.D.
• Fraudsters might attempt to intimidate, to get money right away.
• Fraudsters will change story and sweeten the pot so to speak and make additional promises so as to entice you to hand over cash.
• No vehicle around...where is your vehicle Mr. Landlord? How did you get here?
• Where is the rental application? Do you want me to complete a rental application? NO? So I can just move in? If this is the case then it is strongly recommended that you walk away.

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4. What are some signs that I might be dealing with a fraudulent tenant?

A. Some signs:

• Can't or won't produce 2 pieces of I.D.
• I previously lived with my parents or relatives or a friend, I don't have a current or previous landlord.
• Has every excuse in the book for you not running a credit check which can be used to compare the information on it against the information on the rental application. Oh it doesn't match?
• Brings his/her own credit report to you so that you might take it at face value. Some legitimate tenants might do this and it might be valid, but remember, documents are easily counterfeited, and you have no way of knowing that unless you get your own from a legitimate source. If it's a FREE Credit Report remember that the score is NOT a Fico Score, it has nothing to do with Fico and is not reflective of good or bad pay habits.
• I'm self employed and I can't show you a W-2 (USA) or a T-4 (Canada) ---income tax return.

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5. What are my rights & responsibilities as a tenant?

A. http://www.tenantsinfo.com/tenant_rights.html look for tenant responsibilities on this page.

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6. What are my rights & responsibilities as a landlord?

A. http://www.tenantsinfo.com/landlord_rights.html look for tenant responsibilities on this page.

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7. How can I prevent being a fraud victim?

A. Some signs:

• Always identify the Individual that you are dealing with, this will minimize your risk, fraudsters like to remain anonymous. Ask to see 2 pieces of ID, one should have a photo.
• Analyze the story, is too good to be true? Does the story make sense? Is the Individual acting like a professional/normal landlord? A normal tenant? Are they in a rush to get your money?
• Obtain a vehicle license plate number where possible, if no vehicle, ask how they got there, and analyze the story. Oh, you work in the city? 20 miles from here? How will you get to work?
• Never be rushed, never be intimidated, and never hand over cash on the first meeting unless you are absolutely certain that you know who you are dealing with.
• Act confident and in charge, stand tall and look your party directly in the eye. If you are meeting alone, make a cell phone call to a friend and let them know where you are, who you are meeting with. Respect and protect your safety at all times, do not take unnecessary risk.
• Do not take along cash, credit cards or any other valuables/assets. Women should not carry purses, this applies to either landlords or tenants. This presents opportunity to fraudsters and otherwise the criminal element. Especially when there are two of them and one of you.

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A word of caution: If you are uncomfortable for any reason upon first meeting with your party, whether a landlord or tenant... LEAVE! Make an excuse, I forgot something in my vehicle, I have to call a friend, my boyfriend is a policeman just getting off shift, I have to call him to meet me here...just get out!

There are many VICTIM stories of assault, of indecent exposure, of robbery, of fraud etc. If you have a mental checklist before you meet, particularly if you are on your own and things don't seem right, then you will know what to do.