Covid:19 Rental Frauds and How to deal with that?

Covid19 Rental Frauds

Deal with Covid:19 Rental Frauds

Frauds are scary whether it’s about finances, education, or rents! To keep a clear picture and stay away from all kinds of frauds one has to keep following the precautionary measures.

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Especially in COVID Era, a certain number of frauds have been brought to notice and people are constantly worrying about how to deal with such kinds of frauds. Frauds regarding the rents or rather rental frauds are being caught every now and then in the covid era, so one has to find a quick escape from all such frauds and know how to stay secure in such conditions.

Of course, rent is a major expense and in the current situation wherein people are lacking the money and the circulation of money is lacking or is happening at a low pace, people will try and find ways to escape such expenses smartly for their survival.

Without understanding in detail about the fraud or the precautionary measures it will be difficult to exercise anything or to get a quick escape from it. 

Therefore let’s understand in detail about the Covid 19 Rental Fraud

In their 2020 Fraud in the Rental Industry Survey, Snappy found that two-thirds (66%) of property managers reported that they have been the victim of fraudulent rental applications. Managers also noted that 10% of fraudulent applications are going unnoticed during the screening process.

If a person letting the property receives a fraud application, these can be the hazardous outcomes of that:

> The cost of renting property to a bad tenant in terms of stress and tension. 

> An irresponsible tenant can also damage the property.

> If you let your property to a bad tenant, you have already missed an opportunity to give it to a good tenant. 

> Wrong tenant can also conduct criminal activity at the property 

> You might lose your reputation if you hand your property into the wrong hands.

 Rental Application Fraud Alive and Well During COVID-19: Protect Yourself | Millionacres (fool.com)

Also, frauds can occur from the lender’s side as well:

> They may make an agreement that is not completely fair or disclosed to you. 

> They might charge the rent more than the mentioned amount.

>Ask you to leave the space before giving or issuing a prior notice.

So, to avoid such frauds from either parties, it is necessary to take into consideration certain precautions.

1. Identity Verification:

The majority of the frauds occur due to missing out on the identity verification of both the parties, if you don’t do identity verification properly there will be an issue, or there are higher chances of conflicts to arise due to it. When we talk about identity verifications we shall only consider government documents, falling for any other type of documents or not bothering about any identity verification might put you in major trouble.

2. Make the terms of payment very clear:

You can not have just a verbal discussion about the entire rental agreement between both the parties, you have to mention each clause precisely in your rental agreement without fail, and both the parties have to sign that agreement. If things are on paper it will help for future reference.

If you have just done the things verbally, then in case of dispute there will be no evidence to put an end to such tussles.

Also, to make the rental system clear, the tenant should explain his way and mode of paying that whether he will pay be cheque or cash and on which date he will pay and the landlord has to either accept it or can put his points for discussion.

3. Always keep a copy of all documents:

We are lazy when it comes to documentation but these small things are important and necessary for everyone, each individual in absence of sufficient documents won’t be able to address any legal hearings. Rather it is necessary that one keep a copy or two of the important documents and place it properly, missing out on those copies will be troublesome.

4. Check the References:

Both the parties should check the references, as it helps a lot. Instead of just randomly trusting one, it is better to seek references, without references don’t tend to get into any rental agreement with anyone. It will be risky also it is more beneficial when you know someone who you are renting your property, same is for the students who are getting accommodation from someone they know, it establishes trust and the property also remains in safe hands.

If anything goes wrong, it will be easier to solve the grievances and keep everything cool and normal between both the parties.

Also, if someone is referred then you can also have a mediator. For any complaints or discussions, you can always reach out to the mediator to get things done without involving yourself.

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→ Summing Up:

The world is full of different kinds of people, you can’t expect everyone to be fair with you just because you are fair to them. Therefore only get rolled up to things when you know you have taken enough precautions and also if you think you don’t know anyone personally or you don’t have any references the safest option is to depend on the post-landing service providers. 

As such companies are solely functioning for the students and they have their strings connected everywhere! So it is better and safer to rely on the post-landing service providers.

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