The rental market has always carried risks, but today’s environment is more challenging than ever. With high rental prices and job insecurity on the rise, rental scams have become more common and more sophisticated due to the emergence of AI.

For property managers, this poses a serious risk that can lead to unpaid rent, legal disputes, and potentially thousands of dollars in property damage.

How has AI changed the game?

Traditionally, fraudulent documents like fake credit reports, pay stubs, or even government IDs, were easier to spot. With advanced AI tools, scammers can now create highly convincing documents in seconds. Company logos look authentic, tax deductions appear accurate, and even bank deposits can be simulated using AI software. What use to be an obvious Photoshop or deepfake attempts, are now polished documents that can fool seasoned property managers. Adapting to this rapidly changing landscape is essential to protect clients and their assets. 

Common red flags to watch for:

Although AI-generated documents can be convincing, they are not perfect. Look for inconsistencies such as:

• Formatting errors: irregular fonts, spacing issues, or blurred company logos.

• Employer details: contact information that is fake or does not connect to the stated company.

• Accounting mistakes: deductions or totals that don’t add up. 

How to protect yourself and your clients:

1. Investigate all documents thoroughly

Requesting pay stubs, employment records and past tenancy information is standard practice. Examine each document carefully, looking for errors or inconsistencies.

2. Follow up

Call the employer and previous landlord to verify the information provided. Review company websites to confirm they are legitimate. Once the details are verified, you can make a more educated decision about proceeding with the tenancy. 

3. Fight AI with AI

Several companies now offer AI-powered tools that can scan documents for signs of AI generation. These AI systems can analyze a variety of documents to verify if they have been created using AI. These tools will highlight details that may be difficult to detect manually. 

Important note: Before using any AI verification tool, you must obtain permission from the prospective tenant. As AI continues to evolve, maintaining privacy is critical.