KNOCK, KNOCK. WHO’S THERE?
THIS BEGS THE QUESTION - WHO ARE YOU PEOPLE? that’s 5-6 fraudulent tenants. Five evictions amounts to $37,500 in potential eviction costs. It’s estimated that the national average rose around 40% in 2023 (RealPage). with an average cost of $7,500 per eviction (Snappt, 2024). Outside major metro areas with higher rates of fraud and expense, the fraud rate was estimated at 3.6% in 2022. Of 150 units, Are you certain the applicants on the doorstep are who they claim to be? For ages, realtors have been keen to the arrray of threats they face during property showings with good reason to be wary. Exponential growth in multiple forms of identity fraud is wreaking havoc. Recent survey data claims 93% of property managers reported fraud in 2023 ( National Multifamily Housing Council , 2024). It gets worse. 73% of RealPage report respondents claimed over half of all rental application fraud goes undetected until after residents move in. Eviction procedures can take 6 months or longer, With listing platforms touting “tenant screening for guaranteed quality applicants,” how are these bad actors making the cut? It’s a hard pill to swallow, but tenant screening software is helpless against identity theft. Catching unskilled scammers and the unqualified-but-honest, it stops short at fraudulent applicants. The 5 most difficult-to-detect fraud types: 1. Income misrepresentation 2. Fake or manipulated renter identities 3. Identity theft 4. Staff pushing through unqualified candidates 5. Fraudulent co-signers or guarantors
EVICTION PROCEDURES CAN TAKE 6 MONTHS OR LONGER, WITH AN AVERAGE COST OF $7,500 PER EVICTION.
Source: (RealPage, National Multifamily Fraud Research Study , 2024)
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