How Can Landlords Spot Fake Application Documents from Tenants?

Common rental application documents that tenants fake

A deceitful applicant can modify or forge various documents. Here are the most common and how to spot a fake.

Credit report

A credit report is a critical document that landlords scrutinize to determine an applicant’s track record with managing debt and bill payments. As a result, the temptation is there for some tenants to submit to you an altered report that presents them in a more favourable light.

A tenant can modify their credit report easily by copying images from sample reports found online and merging them with their own report. Or they can make changes to their report as needed with the aid of software programs like Microsoft Word, Google Docs, and Acrobat DC. 

When reviewing a credit report (particularly a scanned PDF document or hard copy), keep an eye out for the following features, which may indicate that the document is fake:

• • Missing pages
  • Cut-off pages
  • Page numbers that are in the wrong order
  • Details like address and name that aren’t consistent with information found on other documentation the tenant provides
  • Inconsistency with the font
  • Glaring spelling, grammar, and punctuation errors

Suppose you’re reviewing a PDF copy of a credit report you’ve downloaded directly from an email. In that case, you can try the following tactic as well:

1. 1. Open the document and click on “File” and then select “Properties”
   2. Click the “Document Properties” tab
   3. Examine the date and time to see if someone has modified the document since it was first created

However, these details aren’t secure (meaning someone can remove them), so they may not be available for you to view.

Sometimes it can be next to impossible to determine whether a credit report is legitimate. For this reason, purchasing a credit report from a reputable third-party source is the best way to ensure you don’t get scammed. It’s never wise to accept a credit report from a tenant directly.

SingleKey offers a tenant credit report and background check that can be ready for you to download in as little as five minutes.

Pay stub

Asking for a recent pay stub is standard practice to verify an applicant’s income. But, like a credit report, this is also an easy document to fake.

Numerous online applications allow tenants to create a fake pay stub, usually for a tiny fee. Some tools offer a pre-made pay stub template, allowing a tenant to enter their address, company name, salary/hourly wage, pay date, and other details. These tools accurately calculate source deductions and other payroll data, too, which helps to make the pay stub look authentic.

Here are some features that may indicate a fake pay stub:

• • Net pay is a whole number, like $2,100, which after accounting for deductions, is unlikely
  • Lack of details commonly found on pay stubs, such as the employer’s address
  • No company logo
  • Incorrect math – for example, the net pay is too high relative to gross pay
  • Glaring spelling, grammar, and punctuation errors
  • Misaligned writing or numbers
  • Inconsistent, unusual, or blurry font
  • Details on the stub don’t match what’s found on other documentation provided by the tenant

Fake pays stubs created in a rush or with low-quality software will contain many red flags and stand out. However, others may look remarkably legitimate. Therefore, it’s always worth contacting the employer listed on the stub to confirm the applicant is a current employee.

It’s also wise to ask the applicant to supply you with a few months of recent bank statements. Even if they indeed work at the company noted on the pay stub, they may still have altered the document to inflate their earnings. Examining their bank statements will allow you to detect discrepancies between the earnings on the stub and the money deposited in their bank account. You can also verify if their pay dates correspond with the payment frequency noted on the pay stub.

As with a credit report, the best way to check whether a pay stub is genuine is by obtaining a credit and background report from a third-party source.

Bank Statement

Next to a pay stub, a bank statement is the best document you can examine to verify someone’s income. Unfortunately, a tenant can falsify one quite easily, as instructions for creating fake bank statements are readily available online. 

Here are some signs that may indicate a phony bank statement:

• • Inconsistent font type and size
  • Sloppy spacing and alignment of numbers, text, and other elements
  • Incorrect math – for example, the beginning balance from one statement doesn’t match the ending balance for another
  • Bank logo and other trademarked symbols don’t match what’s on the bank’s website
  • Inconsistent payment amounts and pay periods – most people who work a standard job have consistent earnings paid out bi-weekly or monthly
  • A large number of transactions with round numbers

When asking an applicant for a bank statement, ask for those from the previous 30 to 90 days. It’s best to ask for three months’ worth to obtain sufficient insight into their deposits and payment patterns. Ideally, the statements should be from one of Canada’s Big Five banks. If not, you may need to scrutinize the details more closely.

First, look for suspicious deposits and withdrawals and examine any inconsistent transactions. Is there an abundance of transactions but no bank fees charged? Are there overdraft fees despite a high positive cash balance? Be sure to reconcile the transactions to confirm that the totals match the balance on the statement.

Next, compare the personal information found in the statements to what the applicant provided in their tenant application form – it should all match perfectly. For example, their take-home pay should align with the monthly income they stated they earn (less the source deductions).

Do the same cross-examination with the pay stub. Does the applicant receive payment from the employer listed on the pay stub? Do the deposit dates on the bank statement correspond with the payment frequency noted on the pay stub?

Driver’s Licence

A driver’s licence is one of the most common pieces of government-issued ID tenants will present to you. As with paper documents, a tenant can obtain a replica of the driver’s licence issued in their jurisdiction. These fake cards contain features that make them almost indistinguishable from the real thing: 

• • Holograms
  • Laser print photos
  • Embossment
  • Microprint
  • Scannable barcode

So, are there clues you can look for to determine whether a driver’s licence is genuine? Yes – but you must be able to examine the ID in your hands. Here are two tips:

• • Examine the thickness of the photos. If it’s thicker than the immediate surrounding area, someone may have placed a second photo on top of the original.
  • Assess the consistency between the numbers and letters. If the colour or thickness of some characters differs from the others, someone may have done a modification.

In addition to the above, it helps to become familiar with the various security features unique to licences issued in your province. You can then quickly spot any anomalies.  

For example, a driver’s licence from Ontario contains special inks visible only under ultraviolet light and raised lettering on the driver’s license number and date of birth.

Of course, you can also obtain a soft copy of a driver’s licence from a third-party source that issues credit and background check reports on tenants. You can then compare the details from this report against those on the driver’s licence provided by the applicant.