In a perfect world, every rental application would be honest. But we’re not in a perfect world. And if you’re a landlord, you’ve likely come across applicants who don’t exactly tell the whole truth. Some take it further—submitting fake pay stubs, falsified credit reports, and bogus references.
The stakes are high. According to the 2024 National Multifamily Fraud Research Study by RealPage, 75% of property managers reported a rise in application fraud in the past year. Even worse? Most cases are detected after move-in, which often leads to revenue loss and legal headaches.
Let’s break down how to protect your property and income by spotting fake documents before it’s too late.
The Growing Problem of Rental Application Fraud
Rental fraud is no longer a rare occurrence—it’s become a trend.
- 6.4% of rental applications (roughly 80,000 annually) contain fraudulent information, according to Snappt’s 2024 Fraud Report.
- 85% of property managers have already been victims of rental fraud, per Snappt’s 2025 statistics.
- Fake documents aren’t just risky—they’re expensive. Fraudulent tenants are 7x more likely to end in eviction or bad debt.
Why is this happening now? Two words: digital tools. With free PDF editors, fake pay stub generators, and even deepfake tech, it’s easier than ever for applicants to falsify documents that look legitimate.
Red Flags to Watch For
1. Suspicious Pay Stubs
Fake pay stubs are one of the most commonly forged documents. Here’s what to look out for:
- Perfect formatting: Real pay stubs often have inconsistencies.
- Rounded numbers: Repeated use of round numbers (e.g., $1,000.00) can signal fabrication.
- Mismatch in employer info: If the company name is legit but the contact info isn’t, that’s a clue.
- Missing tax deductions: Real stubs will show deductions like FICA, Medicare, and local taxes.
Verification tip: Use employment verification tools or contact the employer directly—not the number listed on the stub. Instead, find the HR line via the company’s official website.
2. Phony Bank Statements
Some applicants fake their financials to appear more solvent than they really are. And it’s getting harder to catch without the right tools.
To spot fake bank statements, keep an eye out for:
- Typos or inconsistent fonts
- Unusual spacing or alignment
- Missing or mismatched logos
- Strange transaction patterns (e.g., salary deposits always on the same date and amount)
If you’re unsure, request original statements directly from the applicant’s bank or ask for permission to use a verification service.
3. Too-Good-To-Be-True Credit Reports
Applicants can upload doctored credit reports pulled from online templates or altered PDFs. Real reports from TransUnion, Equifax, or Experian usually come with:
- Logos and watermarks
- Multiple pages detailing account histories
- Consistent formatting and terminology
To verify, use an official tenant screening service that pulls reports directly from bureaus. Never rely solely on a document the applicant provides.
4. Fake References
A fake reference can be anyone—a friend pretending to be a landlord, a coworker posing as HR. Be skeptical if:
- The “landlord” has a Gmail or Yahoo email.
- The person is hesitant to share details.
- They avoid phone calls or only respond via text.
Cross-reference names and numbers with public property records. Ask specific questions only a real landlord or manager would know (e.g., “What color is the front door of the property?”).
Tools That Help Landlords Stay Ahead
Technology may make it easier to commit fraud, but it also gives you tools to fight back.
Document Verification Platforms
Services like Snappt and Findigs specialize in catching document forgery using AI and machine learning. Snappt, for example, boasts a fraud detection accuracy rate of up to 99.8%.
These platforms analyze metadata, detect font irregularities, and flag edited fields. They’re not foolproof, but they’re way better than eyeballing a PDF.
Employment & Income Verification Services
Third-party services like The Work Number or Truework can provide verified employment data, saving you the trouble of tracking down HR departments.
These platforms pull data directly from payroll providers and can confirm salary, dates of employment, and job title.
Tenant Screening Services
A full tenant screening package typically includes:
- Credit history
- Background check
- Eviction history
- Income verification
Look for services that connect directly to credit bureaus and payroll systems, avoiding the need for applicants to upload their own docs.
AI-Powered Fraud Detection
Research in AI-Based Identity Fraud Detection shows that deep learning models can detect synthetic IDs and altered documents with 80%+ accuracy. These tools are still developing but represent the future of fraud prevention.
Some even offer liveness checks—verifying that a selfie matches a photo ID in real time.
Legal Do’s and Don’ts
You want to catch fraud, not land yourself in legal trouble. Here’s what to keep in mind:
Do:
- Get written consent before running background or credit checks.
- Apply the same screening process to all applicants to avoid discrimination claims.
- Document everything in case you need to justify a rejection.
- Use Fair Housing-compliant tools for tenant screening.
Don’t:
- Accuse applicants of fraud without proof. Deny based on verified discrepancies, not assumptions.
- Request irrelevant information like passwords or personal banking credentials.
- Treat applicants differently based on race, gender, nationality, or family status.
When in doubt, consult a real estate attorney or local housing authority.
What If You Catch a Fake?
So you suspect a document is forged. Now what?
- Pause the application and notify the applicant.
- Give them a chance to explain, but don’t accept unverifiable excuses.
- Deny the application with a clear explanation. Document the reason.
- Report the fraud to your local property owners’ association or fraud reporting hotline.
You may also want to blacklist the applicant within your property management system to avoid future submissions.
Final Thoughts
Tenant fraud is a growing problem, and the risks go way beyond a missed rent payment. Once a fraudulent tenant is in, getting them out is messy and costly. But you’re not powerless.
By learning to spot red flags, using verification tools, and sticking to a consistent screening process, you can catch fake documents before they cost you. Stay vigilant. Tech-savvy fraudsters are getting better—but so are your tools.
Anantha Nageswaran is the chief editor and writer at TheBusinessBlaze.com. He specialises in business, finance, insurance, loan investment topics. With a strong background in business-finance and a passion for demystifying complex concepts, Anantha brings a unique perspective to his writing.
