The ESA Letter That Opened a Can of Worms: My Hard Lesson in Tenant Screening and Documentation Fraud

Arvin here. I’m a new member in this community and still early in my investing journey, but in it long enough (4 years) to earn some scars and scuffs. I want to share a real situation I’m currently dealing with because I know someone here has been through something similar and hopefully we can help you to avoid getting in a situation like this. And honestly, I’d love to hear how you all handled it.

Roll back to Jan 4, 2025. I had a duplex that had been sitting vacant going into month three. With a $3200 mortgage, the pressure was mounting. That’s when I pivoted to Section 8. Over the next few weeks, I screened 8 tenants and denied all 8. I stayed firm about red flags and didn’t bend.

By mid-January, the clock was still ticking and I needed stronger applicants. On Jan 18, I received a call from an applicant looking for a better environment for her family of three. I told her to complete the application and we would wait for HACA clearance. Twelve hours later, she was approved, contingent on meeting all Housing Authority requirements.

After several days of back and forth with the lease agreement and HACA’s contract, everything came together. On Jan 27, 2025, the lease was executed and keys were handed over.

That is when things started to go south.

Within 2 weeks, I learned from neighbors that my new tenant had 2 additional occupants living there and a large pit bull. None of this was disclosed on the application, to me, or to HACA. When I questioned it, she presented an Emotional Support Animal letter. The document looked legit at first glance. I was green to ESA laws at the time, so I accepted it at face value.

But when I tried contacting the clinician listed on the letterhead, I was told she no longer worked at that facility. That was the first sign something was wrong.

I reached out to the tenant for updated information. She avoided my calls, ignored emails, and delayed submitting documents. With no cooperation, I had no choice but to notify her that I would file for eviction if she failed to provide proper documentation. That got her attention. She then sent me a dog registration.

And big dummy me said, OK, we’re good.

Fast-forward 8 months. Reports started coming in from neighbors about various issues in and around the property. Different things, different times, but all pointing back to the same unit. I’m leaving some details out for the sake of keeping this story short, but let’s just say the pattern was becoming clear.

Now here we are. December 3rd.

I am dealing with a case where my tenant has possibly forged a signature on a certified letter, amongst other reports that I gathered from Austin PD. And based on the evidence gathered, her entire application file with HACA is now considered defective. The ESA letter, the occupants, the communication issues, the behavior issues, the forged signature, all of it has built a deep and well-documented pattern.

I am now moving forward with eviction and finally have the evidence to support the case fully.

This whole situation forced me to almost rethink my why in this business... but but but, I wasn't about to let one tenant dictate my future.. I just needed to develop a more rigorous process for verifying ESA documents, inspect tenant paperwork, protect my property from the start, and more importantly, rely on communities like Wealth Masterminds Academy. What I thought was a simple accommodation has turned into one of my biggest nightmares and learning experiences in my 4 years of investing.

Here are the key lessons I’m walking away with:

1. Be willing to trust, but verify.

A legitimate ESA letter is easy to confirm. A fraudulent one usually opens the door to a lot of other issues.

2. Sloppy documents often predict sloppy tenancy.

Red flags rarely show up alone. They come packaged.

3. Tenants who avoid communication will cause problems later.

Every single time I had to chase her for a document, it foreshadowed the next issue.

4. Documentation fraud is more common than new landlords realize.

It’s not uncommon for tenants to submit fake ESA letters, altered paystubs, modified bank statements, or forged signatures.

5. Processes matter more than hope.

My system wasn’t tight enough. This experience changed that permanently.

6. Know the laws, federal, state and local - Check out this YT video to learn more about service animals.

Now, I want to turn it back to the community. For those of you who have been in the game longer than me, I’d really like to hear your perspective. I appreciate any insight, templates, or war stories. The more we share, the sharper we all get.

1. Have you ever received a questionable ESA letter? If so, how did you vet it?

2. Does anyone have an SOP for ESA requests they are willing to share?

3. How do you maintain Fair Housing compliance while still protecting your asset?

4. And last, here is a poll question: What is the biggest red flag you watch for during tenant screening?

Questionable or inconsistent documentation

Poor communication or avoidance

Undisclosed occupants or pets

Income and employment that doesn’t fully check out

Other (comment below)

1 vote

2 comments