As a property management company, our primary goal is to provide reliable and secure services to our clients. We understand that verifying the income of potential tenants is a crucial aspect of the screening process, as it helps us determine their ability to pay rent on time. However, relying solely on scanned pay stubs can be a risky proposition, as fraudulent activities have become rampant in recent years.
One of the most common forms of fraud in the rental industry is the use of fake pay stubs. These fraudulent documents can be created using various software and can be easily altered to show a higher income. This makes it difficult for property management companies to verify the authenticity of these documents, leading to potential losses for both the property owner and the management company.
There are even companies out there, that serve the niche market of creating fake job and landlord references, to include pay stubs, and even setting up phone numbers and providing an answering service to verify employment and/or rental history to callers. And it's not that expensive....
To help combat fraud, our property management company has decided to use automated income verification instead of relying on scanned pay stubs. This approach involves using an online system to verify the income of potential tenants, which allows us to access their financial data directly from their employers or banks. This ensures that the information we receive is accurate, up-to-date, and cannot be tampered with.
Using automated income verification has many advantages over traditional methods of income verification. Firstly, it is a more secure method of verifying income as it eliminates the possibility of fraudulent activities. Secondly, it is a more efficient process, as it eliminates the need for property managers to manually collect and verify income-related documents. This allows us to focus on other aspects of the screening process, such as criminal background checks and rental history.
Another advantage of using automated income verification is that it provides a more comprehensive overview of a tenant's financial situation. This is because the system can provide information on other sources of income, such as bonuses and commissions, which may not be reflected on pay stubs. This helps us make informed decisions about potential tenants, and ensure that we only rent to those who can afford to pay rent on time.
In conclusion, as a property management company, we understand the importance of using secure and efficient methods to verify the income of potential tenants. We believe that automated income verification is the best approach to combat fraud and ensure that we provide reliable services to our clients. By using this approach, we can reduce the risk of losses due to fraudulent activities and provide a more comprehensive overview of a tenant's financial situation.