How to Spot Fake Pay Stubs During Tenant Screening: A Landlord's Detection Guide

By PropsManager Team · Tenant Screening · Dec 19, 2024

I'll never forget the first time I got burned by a fake pay stub. The applicant looked great on paper — steady job at a logistics company, $68,000 annual salary, clean background check. The pay stub was a PDF that looked perfectly legit. I signed the lease. By month three, rent stopped coming. Turns out, the "logistics company" was a cousin's LLC with no real revenue, and the pay stub was a $15 template from the internet.

That mistake cost me about $4,200 in lost rent plus $1,800 in eviction costs. And I'm not the only one. According to the TransUnion SmartMove Tenant Screening report, roughly 30% of rental applications contain some form of misrepresentation. Income fraud — specifically fake pay stubs — is one of the most common types.

Here's the uncomfortable truth: you can buy a realistic-looking pay stub online in under five minutes for less than $20. Websites openly sell "novelty" pay stubs with customizable employer names, salaries, and deduction breakdowns. If you're not actively looking for fakes, they'll sail right past you.

This guide covers every technique I've learned over 12 years and hundreds of tenant screenings. Let's dig in.

Why Fake Pay Stubs Are So Common Now

The explosion of remote work and gig economy jobs has made income verification harder than ever. Back in 2015, most applicants worked a W-2 job at a recognizable company. You could call HR, confirm employment, and move on.

Now? A significant chunk of applicants are freelancers, 1099 contractors, or work for small startups you've never heard of. That ambiguity creates cover for fraud. When you can't just look up the employer on LinkedIn and find 5,000 employees, it's easier for someone to fabricate the whole thing.

The numbers back this up. A 2023 report from the Federal Trade Commission found that identity fraud and document falsification increased by 23% year-over-year, with rental applications being a prime target.

The Real Cost of Missing a Fake

Let's do some quick math. Say your unit rents for $1,500/month. A tenant who fabricated income docs and can't actually afford rent will likely default within 2-4 months. Here's what that costs:

• Lost rent (3 months average): $4,500
• Eviction filing and legal fees: $1,200–$3,500
• Unit turnover and repairs: $800–$2,500
• Vacancy during eviction (2 months): $3,000
• Total potential loss: $9,500–$13,500

That's not a typo. One bad tenant who slipped through with a fake pay stub can cost you more than $10,000. At that point, spending an extra 20 minutes verifying income documents is the best ROI move you'll make all year.

Step 1: Do the Math First — It Catches 80% of Fakes

The single most effective technique for catching fake pay stubs is doing basic arithmetic. Most fraudulent documents get the numbers wrong because the people creating the templates don't understand payroll.

Check Year-to-Date Against Pay Period

If a pay stub is dated October 15 and shows bi-weekly pay, that means it's roughly the 21st pay period of the year. Multiply the gross pay per period by the number of pay periods elapsed. Does the YTD match?

Example: An applicant's stub shows:

• Gross pay per period: $2,615.38
• Pay date: October 15
• Pay frequency: Bi-weekly (21 periods elapsed)
• YTD gross shown: $54,923.08

The math: $2,615.38 × 21 = $54,922.98. That's close enough (rounding differences are normal). If the YTD showed $61,400 instead? Red flag. The numbers don't add up.

Verify Tax Withholdings

This is where most fakes fall apart. Federal and state tax withholdings follow specific rules, and template creators almost never get them right.

Grab a calculator. Take the gross pay and multiply by 6.2% — that should match the Social Security deduction almost exactly. Do the same with 1.45% for Medicare. If either is off by more than a few cents, you're likely looking at a fake.

I once caught a stub where the "Social Security" deduction was listed at $198.45 on a gross of $2,800. That's 7.09%. Not even close to 6.2%. When I pointed this out, the applicant withdrew their application. No argument, no explanation. They knew.

Check Net Pay

Add up all deductions and subtract from gross. Does it equal the net pay shown? Fake stubs frequently have a net pay figure that doesn't match the gross minus deductions because the creator changed one number without updating the rest.

Step 2: Scrutinize the Formatting Like a Forensic Accountant

After the math check, turn your attention to how the document looks. Legitimate payroll companies — ADP, Paychex, Gusto, QuickBooks — produce stubs with consistent, professional formatting. Fakes usually have tells if you know where to look.

Font Inconsistencies

Open the PDF at 200-400% zoom. Look for:

• Mixed fonts. Real pay stubs use one, maybe two fonts consistently. Fakes sometimes have Calibri in the header and Times New Roman in the body.
• Kerning issues. Letters spaced unevenly suggest the document was manually assembled.
• Blurry text next to sharp text. This happens when someone pastes edited numbers over the original.

Number Formatting

Legitimate payroll software formats numbers identically throughout the document. Every dollar amount will have two decimal places. Commas will be in the same position. Check for:

• Missing commas in amounts over $999.99
• Inconsistent decimal places ($2,615.38 in one spot, $1200 in another)
• Dollar signs that appear in some fields but not others

The Logo Test

Zoom into the company logo. Does it look crisp or pixelated? A real pay stub generated by the employer will have a high-resolution logo. A fake created from a template will often have a logo that was grabbed from Google Images at 72 DPI and looks blurry when magnified.

Look for "O" vs "0" Swaps

This is old school but still shows up. Some fake stub generators use the letter "O" instead of the number "0" in certain fields. Highlight the numbers in the document and change the font — you'll see the difference immediately.

Step 3: Verify Directly with the Employer

Never skip this step. A five-minute phone call can save you thousands.

How to Do It Right

1. Look up the employer independently. Don't use the phone number on the pay stub — that could ring to the applicant's buddy. Google the company, find their main number, and ask for HR or payroll.
2. Keep it simple. Say: "I'm verifying employment for [Full Name]. Can you confirm they're currently employed with your company?" Most HR departments will confirm or deny employment without needing a release form.
3. Ask about position and dates. "Can you tell me their approximate start date and current role?" This cross-references what the applicant put on their application.
4. Note what they won't tell you. Most employers won't disclose salary without a signed authorization. That's normal and not a red flag. But if the company says "We have no employee by that name"? That's your answer.

When the Employer Can't Be Verified

Sometimes the company listed genuinely doesn't have a public HR line. Small businesses, startups, or sole proprietorships can be hard to verify. In that case:

• Ask the applicant for a direct supervisor's contact information
• Check the business registration with your state's Secretary of State website
• Look the company up on LinkedIn — do real employees show up?
• Search for the company's EIN (Employer Identification Number) on IRS records

If none of these checks produce results, that's a serious concern. Legitimate employers leave digital footprints.

Step 4: Request Bank Statements as Backup Verification

This is the verification method that fraudsters hate the most. Pay stubs are easy to fake. Bank statements showing actual direct deposits from an employer? Much, much harder.

What to Ask For

Request the last three months of bank statements from the applicant's primary checking account. You're looking for:

• Recurring direct deposits that match the pay frequency and approximate net pay shown on the stubs
• The employer's name appearing as the deposit source
• Consistency — the deposits should be roughly the same amount each period

Red Flags in Bank Statements

• Deposits that don't match the pay stub amounts
• Cash deposits instead of direct deposits (could indicate cash-based work, which isn't necessarily fraud, but warrants more questions)
• Transfers from another personal account being passed off as "income"
• A suddenly inflated balance right before the application date
• The statement PDF metadata showing it was created in Adobe Photoshop or Canva rather than being downloaded from a bank portal

How to Check PDF Metadata

Right-click the PDF file, go to Properties (or Get Info on Mac). Look at the "Author" or "Creator" field. A legitimate bank statement will show something like "Chase Bank" or "Wells Fargo Online." If it shows "Adobe Illustrator" or "Microsoft Word," you're looking at a fabricated document.

Step 5: Use Technology to Supplement Manual Checks

Manual verification works, but technology can accelerate the process and catch things human eyes miss.

Income Verification Services

Services like Plaid, The Work Number (Equifax), or Truework can pull income and employment data directly from payroll systems. The applicant authorizes the pull, and you get verified income data — no stubs required.

The cost ranges from $15-$50 per verification, but compared to the $10,000+ cost of a bad tenant? That's a no-brainer.

Automated Screening Platforms

Tools like PropsManager's tenant screening features can integrate income verification into your application workflow. Instead of manually cross-referencing stubs and bank statements, you get a comprehensive screening report that flags inconsistencies automatically. This saves hours per applicant while improving accuracy.

The Complete Fake Pay Stub Detection Checklist

Use this checklist for every applicant. Print it out. Tape it to your desk. It takes 15 minutes and can save you five figures.

• YTD math check — Does gross per period × pay periods = YTD shown?
• Social Security deduction — Is it exactly 6.2% of gross?
• Medicare deduction — Is it exactly 1.45% of gross?
• Net pay calculation — Does gross minus all deductions equal net?
• Font consistency — Is the same font used throughout?
• Number formatting — Are all dollar amounts formatted identically?
• Logo quality — Is the employer logo crisp at high zoom?
• Employer verification — Did you call the company directly (not using the number on the stub)?
• Bank statement cross-reference — Do direct deposits match stub net pay?
• PDF metadata check — Was the document created by legitimate software?
• Consistency across documents — Do all submitted documents tell the same story?

What to Do When You Catch a Fake

So you've found a fraudulent pay stub. Now what?

Don't Accuse — Just Deny

You're under no obligation to explain why you denied an application. In fact, getting into a confrontation about fraud can escalate quickly. Simply send a standard denial letter. In most jurisdictions, you need to provide an adverse action notice if you used a credit report, but you don't need to say "we caught your fake pay stub."

Document Everything

Keep the fake document on file. Note the date, the discrepancies you found, and any communication with the applicant. If this person applies at other properties, other landlords in your network may benefit from knowing.

Consider Reporting

While not required, you can report fraudulent documents to your local police department. Some states classify pay stub fraud as forgery, which is a felony. You can also report the applicant to tenant screening services to flag the fraud.

Refine Your Process

Every fake you catch is an opportunity to tighten your screening. Did this one slip past your initial review? Update your checklist. Did the math check catch it? Good — make sure you never skip that step. Over time, your process becomes nearly bulletproof.

For landlords managing multiple properties, a systematic approach is critical. PropsManager's platform lets you standardize screening criteria across your entire portfolio, so every applicant goes through the same rigorous verification process regardless of which unit they're applying for.

Common Excuses You'll Hear — And How to Respond

After years of screening, I've heard every excuse in the book:

"My company uses a small payroll provider, that's why it looks different." Maybe. But the math should still check out. Run the numbers.

"I just started, so my YTD looks low." Fine — then the YTD should match exactly [pay per period × number of periods since start date]. Do the calculation.

"I can't get bank statements because I use an online-only bank." Online banks have downloadable statements. Every single one. This excuse doesn't hold up.

"My employer won't verify over the phone." Some won't without a signed release. Ask the applicant to sign one. If they refuse, that tells you everything.

"I get paid in cash." This isn't necessarily fraud, but it makes verification much harder. Request tax returns (Schedule C or 1099s) and bank deposits instead. If they can't provide any verifiable income documentation, you can't confirm they meet your income requirements. It's that simple.

Explore More PropsManager Resources

Looking for the right property management software? Check out our in-depth guides:

• Compare Property Management Software — See how PropsManager stacks up against Buildium, AppFolio, Rent Manager, and Propertyware.
• Software for Small Landlords — Built for landlords managing 1–50 units without the enterprise price tag.
• AI-Powered Property Management — Discover how automation can save you 5–10 hours per week.
• Solutions for Property Managers — Scale from 50 to 500+ units without scaling your costs.

Frequently Asked Questions

How common are fake pay stubs in rental applications?

Industry estimates suggest that roughly 1 in 10 rental applications includes fabricated or altered income documentation. The TransUnion rental screening division reports that income misrepresentation is the second most common type of application fraud after identity misrepresentation. The risk is higher for high-demand rental markets where applicants feel pressure to meet income thresholds — typically the 3x rent requirement. If you're screening 40-50 applicants per year across a small portfolio, odds are you'll encounter several fakes annually.

Can I legally reject an applicant for submitting a fake pay stub?

Absolutely. Submitting fraudulent documents is grounds for denial in every U.S. jurisdiction. Misrepresentation on a rental application is considered material fraud, and most lease agreements include a clause that makes any false statement grounds for termination. You should document the specific inconsistencies that led to your determination and keep those records for at least three years. Just make sure your denial is based on the fraudulent document itself and not on any protected class, so you stay compliant with Fair Housing laws.

What's the best way to verify income for self-employed applicants?

Self-employed applicants present unique challenges since they don't receive traditional pay stubs. Request their last two years of tax returns (specifically Schedule C for sole proprietors or K-1 forms for partnership/LLC members), the most recent three months of bank statements, and a current profit-and-loss statement. Cross-reference the tax return income against the bank deposits. You can also ask for a CPA letter confirming their income, though this can be fabricated too. For comprehensive screening of self-employed tenants, using multiple verification methods simultaneously gives you the most reliable picture.

Should I use a professional income verification service or do it myself?

It depends on your portfolio size. If you manage 1-5 units, manual verification using the checklist in this article is practical and cost-effective. Once you're managing 10+ units, the time investment of manual verification starts to add up, and the risk of human error increases. Professional verification services like Plaid or The Work Number cost $15-$50 per check and pull data directly from payroll systems, eliminating the possibility of document fraud entirely. PropsManager integrates screening tools that streamline this process, making it easy to manage verification at scale without sacrificing thoroughness.

What are the legal consequences for tenants who submit fake pay stubs?

Pay stub fraud can carry serious legal consequences depending on the jurisdiction. In many states, creating or submitting fraudulent financial documents constitutes forgery, which can be charged as a misdemeanor or felony depending on the amount involved. Beyond criminal charges, a landlord who discovers fraud after lease signing can pursue eviction for material misrepresentation and potentially sue for damages including lost rent, legal fees, and costs incurred. However, most landlords opt to simply deny the application and move on rather than pursue legal action, since the time and expense of prosecution rarely justifies the effort.

Protect Your Investment with Better Screening

Here's the bottom line: fake pay stubs aren't going away. If anything, they're getting more sophisticated as AI-generated documents become more accessible. Your screening process needs to evolve too.

The landlords who avoid costly bad tenants aren't lucky — they're thorough. They run the math, verify with employers, cross-reference bank statements, and use every tool available to them. It takes an extra 15-20 minutes per applicant, but that small time investment protects tens of thousands of dollars in rental income.

If you're tired of juggling spreadsheets, phone calls, and manual calculations for every application, PropsManager can help. Our platform streamlines tenant screening with built-in verification workflows, automated red-flag detection, and centralized document management — so you spend less time chasing down fake stubs and more time growing your portfolio.

Ready to bulletproof your screening process? Request a demo and see how PropsManager makes tenant verification faster, more reliable, and completely headache-free.

Don't let another $15 fake pay stub cost you $10,000 in damages. Your screening process is only as strong as its weakest step — make sure every step counts.