Many people that jump into Charleston property management in Charleston SC do not realize the vast amount of fraud that happens in the rental industry. Tenants will lie on their applications to try to get past background and credit checks, but there is fraud that can happen after the tenant moves in as well. Luckily, there are a few red flags property managers can be aware of to avoid being scammed by con artist tenants.
How Tenants Scam Property Managers
Property managers who work in Charleston property management in Charleston SC are pros at looking for the red flags that pop up during the application process for a property. However, knowing the signs of being swindled after move-in are vital to keeping owners protected.
One of the most common ways tenants will defraud a property owner or property manager is by subleasing the home without authorization. Some tenants will try to sublease the home for more than the rental amount so that they can make a profit. Other tenants will rent out the home for short term rentals like air bnb, or will let others move into bedrooms they are not using without adding them to the lease.
Another way that tenants scam Charleston property management in Charleston SC is to take out a mortgage against the property. This scam is more complicated than unauthorized subleasing, but professional con artists have pulled it off numerous times by tracking down personal data and public records of the property owner and pretending to be them. These tenants will mortgage the property, take out an equity loan, or other monies against the property, cash the check and disappear. These scammers use fake names during leasing.
Charleston Property Management in Charleston SC Spot Scammers
The best way to spot a scammer is to conduct very thorough background checks and credit checks on every tenant. You should also do routine property inspections to ensure that the tenant named in the lease is still living in the home and unauthorized roommates have not moved in. Charleston property management in Charleston SC should also encourage property owners to closely monitor their credit.
The best way to avoid fraud and being scammed is to hire a property management company that knows how to spot the red flags of scammers. Let Scott Properties work with you to rent out your home to qualified tenants today by calling 843-779-6527.