The Growing Problem of Fake Landlord References

Rental fraud is no longer a one-off headache—it’s a widespread and systemic problem modern-day landlords and property managers must adapt to immediately.  

A National Multifamily Housing Council survey found that a staggering 80% of leading apartment owners, developers, and managers have caught applicants misrepresenting themselves on rental applications. 

One of the most common and dangerous (yet unexpected) ways fraudsters are slipping through the cracks is through fake renter references, like made-up landlords. And the worst part? Fraud-as-a-service (FaaS) marketplaces, technology, and even friends and family posing as legitimate landlords have made it even harder to spot fake landlord references.

We’re breaking down why the fake references issue is growing and what’s changed in the rental landscape. Plus, we’re sharing tips on how to stay ahead of fraud and respond before it snowballs into a serious problem.

It starts with improving your tenant screening processes sooner rather than later to prevent fraudulent references from impacting your business.

Quick Insights

• Fake landlord references are on the rise due to a combination of tighter rental markets and access to digital tools that make fraud easier to commit.
• Fraudsters are increasingly using tech like AI, Google Voice, and Canva to create convincing fake references, documents, and phone scripts—making it harder to detect fraud.
• The financial and operational costs of fake references are substantial. They lead to bad tenants, expensive evictions (with an average cost of $7,685), and damaged reputations.
• Traditional reference verification methods are outdated—today, fraudsters can easily manipulate paper leases and phone calls.
• Modern, tech-driven verification tools like Snappt offer automated, AI-powered checks that can spot even the smallest signs of document manipulation.
• Proactive fraud prevention also requires staff training and standardized processes to ensure employees use digital tools effectively and across teams.
• A multi-step verification process—including document reviews, public records checks, and conditional approval workflows—helps prevent fraud before it happens.

Why Fake Landlord References are on the Rise 

The rise in fake landlord references is a direct result of market pressures and unprecedented access to technology, especially AI. In high-demand cities—like Miami and Chicago—rental markets have become increasingly competitive, with tenants battling it out for limited vacancies.

Because there’s such high competition, property managers are setting stricter qualification standards, and rent is steadily climbing. And this is driving more applicant rejections, leaving more and more people without a place to live.

Often, landlords reject potential tenants for a legitimate reason—like a bad credit score or a previous eviction—leading would-be residents to find alternative ways to secure a lease. Some resort to tenant fraud, with fake landlord references offering a quick and easy (yet illegal) workaround.

And with technology at their fingertips, fraudsters can find fake reference websites and templates or hire someone to carry out their fraud.

Some services even offer “professional landlord references” that look like the real deal for a small fee, while AI tools can generate convincing fake references or even phone call scripts in a matter of seconds.

With these resources readily available, applicants who would’ve otherwise been rejected can present themselves as picture-perfect renters. That’s why it’s crucial to stay vigilant. Adopt strong rental verification practices to avoid falling victim to these increasingly sophisticated fraud tactics.

How Technology has Made Rental Fraud Easier than Ever

The barrier to entry for rental fraud is lower than you might think. Thanks to the explosion of accessible digital tools, fraudsters can create fake references and documents with very little effort.

Tools like ChatGPT, Google Voice, and Canva help fraudsters fabricate fake landlord references, doctored documents, and realistic-sounding scripts for false phone interviews in a matter of minutes.

Plus, publicly accessible property ownership and landlord information make it shockingly simple for fraudsters to impersonate real landlords. A quick Google search can reveal landlord and property names to create fake references that most wouldn’t even think to question. 

But it’s more than just fake documents like payment ledgers—many fraudsters orchestrate phone interviews with friends posing as landlords, creating the illusion of a real reference.

And when fraudsters leverage the power of digital tools, they can build elaborate, realistic-sounding stories that are incredibly hard for property managers to spot. 

The Real Cost to Property Managers and Owners

When fake references slip through the cracks, you unintentionally let bad tenants into your community (fraudsters often use fake references because they don’t have any good ones).

Aside from less-than-stellar tenants, you can also expect financial, operational, and reputational challenges if you lack the proper verification tools or simply don’t spot a fraudulent reference. 

Financial Consequences

The financial impact of rental fraud is enormous. An eviction alone costs an average of $7,685 per case, which includes unpaid rent, legal fees, and other related expenses.

And with 23.8% of eviction filings resulting from fraudulent applications, the total financial burden becomes consequential. But that doesn’t even include the costs associated with apartment turnovers or the resulting vacancies.

Property managers reported writing off an average of $4.2 million in bad debt over the past year.

Operational Costs

Beyond the direct financial loss, fake landlord references also contribute to operational challenges. All that time spent verifying false information distracts staff who could spend time with legitimate applicants or build relationships with existing tenants.

Plus, longer vacancy periods due to bad tenants could negatively impact your cash flow.

Reputational Risk

Welcoming bad tenants into your property doesn’t just impact the bottom line, it also influences your reputation. Complaints from other renters and negative online reviews stemming from bad experiences can tarnish your image and make it harder to attract the outstanding tenants you actually want in your properties.

Why Traditional Screening Methods aren’t Enough Anymore

Traditional reference screening methods, like manual phone calls or reviewing paper leases, simply don’t cut it when it comes to catching ever-evolving fraud. Fraud methods are getting more sophisticated—your fraud detection needs to as well.

It used to be the norm to rely on applicant-supplied contact information and “gut feeling” phone conversations with supposed previous landlords. But today? Each of these methods can be easily manipulated:

• Fraudsters can supply fake contact information.
• They can plan convincing phone conversations with friends pretending to be landlords.
• Technology lets fraudsters alter lease agreements.

These methods seem like solid reference checks, but they leave plenty of room for error, making it effortless for bad tenants to win a vacancy in your property.

That’s why it’s crucial to upgrade to tech-driven verification workflows. It’s no longer about just checking the basics anymore—you need to confirm the legitimacy of every detail. Technology makes it fast and effective. It helps you:

• Analyze documents quickly
• Validate identities
• Cross-check applicant data with public records

The goal is to use technology to catch fraud before it has a chance to enter your leasing process. Instead of relying on human skill and instinct, you’re backing every decision with hard, accurate data.

What Forward-Thinking Property Managers are Doing Differently 

We’re in a new era of tenant screening, and it’s clear that outdated methods simply aren’t cutting it. Savvy property managers have embraced strategies that incorporate automated rent verification and data-driven insights to detect fraud before it occurs.

Today, it’s all about leveraging tech-enabled verification workflows. By integrating advanced fraud detection technology—like identity verification, AI-powered document checks, and secure online references—you can confirm the authenticity of the information provided.

Fraud detection platforms like Snappt analyze documents for even the slightest signs of manipulation, cross-reference public records and payment inconsistencies, and flag issues in real time. These technologies streamline screening processes while ensuring the validity of every piece of information applicants share.

Modern tools offer faster, more accurate checks, reducing human error and the chance of approving fraudulent tenants.

CALLOUT BOX: Snappt’s AI-powered fraud detection software has scanned over 15 million documents and has a 99.8% accuracy rate in detecting fraud. 

Beyond income and identity checks, Snappt’s Verification of Rent (VOR) feature adds a critical layer of confidence to tenant screening. Using Intelligent Outreach, the system conducts automated, multi-channel follow-ups via email, text, and phone, timed strategically to maximize response rates. Landlord Verification ensures legitimacy by cross-referencing property ownership databases before contacting anyone, preventing wasted efforts and potential errors. With an 80%+ success rate in rental payment verification—well above the industry average—Verification of Rent provides property managers with reliable insights into an applicant’s payment history, helping teams make faster, smarter, and more secure leasing decisions.

But technology alone isn’t enough. The property managers who are most successful in preventing fraud are those who also standardize internal processes. 

They create and share rental verification policies that include clear fraud protocols and document every single step to reduce liability and boost consistency across the board.

Equally important is training leasing teams on fraud awareness and digital literacy. Staff should learn to recognize the warning signs of fraud and use digital tools properly. This proactive approach means your team doesn’t get stuck when they face an issue.

They can actively prevent fraud, rather than just react to it.

Rewriting Your Screening Playbook for a Fraud-Heavy Market

As fraud evolves and becomes increasingly difficult to spot, sticking with outdated verification methods is like trying to fight a losing battle. If you’re still relying on the old ways of verifying references, it’s time to upgrade your process and adopt a “trust but verify” approach. 

While building a trusting relationship with your applicants is vital, any good tenant will understand that verifying their information is essential to protecting your property—and keeping bad actors out of your community.

So, where should you start? A multi-step verification process is your best defense: 

Document review: Start with a thorough document review to spot any signs of manipulation. While manual checks can catch obvious signs of fraud, technology is far superior at identifying the subtleties.

Public records check: Follow up with a public records check to cross-reference the details your applicant provides. If their name or addresses don’t match up, that’s a glaring red flag.

Conditional approval workflow: If anything doesn’t add up or seems fishy, don’t hesitate to add conditional approval workflows so you can vet them further before making a decision. For example, you might request additional documentation. 

The key to this strategy? Using technology that integrates smoothly into your existing leasing workflow, rather than disrupting it. The right tech should simplify your process, making verification quicker and more accurate without adding unnecessary complexity or bloat.  

It’s all about working smarter, not harder, and picking tools that save you time while giving you peace of mind.

How to Talk to Ownership and Leadership About the Risk

Need to convince leadership about the need for better, more advanced screening tools? Present the idea as an innovative business decision—not another expense.

93.3% of leading apartment owners, developers, and managers report experiencing fraud in the past 12 months. No one is safe from fraud attempts.

Start by highlighting the ROI of investing in advanced screening tools. By reducing fraudulent applications, you:

• Lower the chances of bad tenants living in your properties and the delinquency that often comes with these renters.
• Turn units over faster because tenants are leaving willingly, not through a lengthy eviction process.
• Decrease eviction rates (saving time and money).

A 2023 Ontario case study is a perfect example of how relying on unverified tenant references can backfire—badly. Landlord Sanaulhaq Zarawar hired a real estate agent to help him find a reliable tenant for his property, but when the tenant stopped paying rent, Zarawar dug deeper. 

He soon discovered false tenant references and documentation, and unfortunately, he learned the hard way that screening wasn’t actually part of the agreement with his real estate agent. The former tenant now owes nearly $40,000 in unpaid rent and utilities.

That’s why it’s so important to position screening upgrades as a necessary operational efficiency, rather than an extra cost or another tool for risk management. Better screening doesn’t just protect your properties—it streamlines operations, saving significant time and resources in the long run. 

The investment pays for itself… and more.

Fake References Aren’t Going Away, But You Can Stay Ahead

It’s time to accept that fake landlord references aren’t a passing fad—they’re part of a broader, industry-wide shift in rental fraud. But there’s good news: property managers who modernize their screening processes will be better equipped to protect their portfolios, reduce financial risk, and maintain thriving communities. 

Tools like Snappt’s Applicant Trust Platform can help bridge the gap between traditional methods and sophisticated fraud tactics. The key is finding robust fraud solutions that integrate seamlessly into your existing workflow and give you the confidence that every application has been thoroughly vetted.