Rental Application Fraud – it’s the fastest growing problem for investors in Canada. In Ontario’s competitive rental market, landlords must remain vigilant against fraudulent tenant applications. In applications we receive almost 15% of the time there is fraud and some companies have even reported that over 50% of applications have some sort of misleading or fraudulent information in them.

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Commonly Forged Documents

Tenants may falsify various documents, including:

• Credit Reports: Altered to display higher scores or remove negative information.

• Pay Stubs: Created using online templates to inflate income.

• Identification: Fake IDs lacking standard security features.

• Bank Statements: Modified to show higher balances or consistent deposits.

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Red Flags to Watch For

When reviewing application documents, be alert for:

• Formatting Inconsistencies: Mismatched fonts or layouts.

• Errors: Spelling mistakes, grammatical issues, or incorrect calculations.

• Missing Information: Omitted employer contact details or incomplete data.

• Document Properties: PDFs showing recent edits or creation dates inconsistent with the content.

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Verification Strategies

To authenticate applicant information:

• Credit Checks: Obtain reports directly from reputable agencies like Equifax or TransUnion, rather than accepting tenant-provided copies.

• Employment Confirmation: Contact employers using official channels to verify job status and income.

• ID Verification: Check for security features such as holograms or raised text on identification documents.

• Bank Statement Analysis: Look for consistent deposit patterns and cross-reference with stated income.

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Implementing a Robust Screening Process

A thorough tenant screening process is crucial. Utilize comprehensive services that offer:

• Credit and Background Checks: Detailed reports on financial and criminal history.

• Employment and Income Verification: Confirmation of job stability and earnings.

• Identity Verification: Ensuring the applicant is who they claim to be.

By adhering to these practices, landlords can better protect their properties and ensure reliable tenancy. For best in class screening, the Rent Panda team always relies on Singlekey