Recent property management data shows that many managers are dealing with an increase in fraudulent applications. While apartment application fraud has always been a problem to some extent, there’s been an uptick in this issue since the pandemic according to recent reports. In this article, we’ll discuss the data about application fraud and some things property managers can do to help prevent accepting these applications.
Property Management Data Shows More People are Submitting Fraudulent Applications
According to Multifamily Executive, many property managers report an increase in the amount of fraudulent applications they receive. Surveys show that an estimated 85% of property managers have noticed an uptick in fraudulent applications.
The property management data showed that approximately one in eight financial documents on screened apartment applications had been fraudulently altered. An estimated 11 million fraudulent applications were submitted to property managers throughout the U.S. last year. That number may be on the rise.
There are several reasons why it’s essential to identify fraudulent lease applications. Accepting tenants that turn in these applications puts the properties you manage at risk. For instance, it may lead to criminal activity in an apartment community. However, by far one of the most common results is increased evictions. Apartment data research shows, on average, evictions cost approximately $7,500 each. Therefore, this is a serious problem you need to address for your property.
Tips for Spotting Fraudulent Apartment Applications
The key to preventing undetected fraudulent applications is to understand common types of fraud and what they look like. One of the most common types of application fraud for apartments according to property management data is using fake or altered financial documents. There are a number of resources online that prospective tenants can use to fake things like pay stubs and bank statements. Many property managers have increased the required financial documentation for applications to help combat this type of fraud. In addition, running credit reports can also help detect discrepancies that might lead to non-payment from tenants that submit fraudulent financial information.
Lying about past criminal or eviction history is another common problem. Running an eviction history check and a background check may help detect these omissions from applicants. However, some people go so far as to create fake identities to avoid detection. Look for inconsistencies in information and background checks to help fight this issue.
Apartment Market Data from Apartment Data Services
If you’re a property manager, apartment owner, or leasing agent, you need good apartment market data to help with operations. Our team at Apartment Data is here to help. We provide total solutions for apartment and multifamily data to help you understand market conditions and make key decisions. Our experts contact properties in our extensive database monthly to provide the most up-to-date and accurate information about your market and submarket. We also offer innovative tools specifically designed to help you beat your competition, like competition radar and revenue management. Contact us now to request a free demo and see what our reports can do for your property.