Student rentals: How do YOU verify financial aid?

[Ben Freiermuth]

Good morning all!

We are a student rental company located in University of Wisconsin-Whitewater. I was recently hired by my father (owner of the business) and he currently accepts financial aid from his student renters for rent payment. Currently, we have them take a screenshot of their financial aid section in their student portal to verify their aid so they can pay rent. This could be anything from FAFSA, bank loans, etc. In lieu of them using financial aid, we have them pay an $800 down payment towards rent, and then the remainder of the semester is due once aid arrives. If they don't have financial aid for rent, then the entire semester is due for that payment.

I feel like there are a few loopholes in this process. If a resident who does not have aid designated for rent wanted to pretend that they have financial aid for rent, they could simply submit a screenshot of their loan (which would only be used for school), and get away by only paying the $800 and deferring the rest of the payment until fall. There is no indication on the financial aid section saying that this is designated for rent money. This loan could be only for schooling. 

Are there systems or a different method that you use to better prove this? 

[Will Gaston]

@Ben Freiermuth I don't. We just put all tenants on one lease and tell them they're each responsible for the entire amount.

Peer pressure to get rent paid works 1000x better than anything I can say or do.