Landlords Beware - Rental Fraud Is On The Rise
Application fraud is growing in residential rental markets since the COVID-19 crisis, according to a new analysis from Snappt, a real estate tech and fraud detection company. Applicant fraud has risen 9% month-over-month since the pandemic. Snappt researchers say that it’s likely a response to the economic climate as well as recent changes to local and state eviction moratoriums.
“There are a number of factors that are fueling the increase in fraudulent rental applications,” says Daniel Berlind, CEO and co-founder of Snappt. “The increasing number of self-employed applicants, a move to online rental applications, and the increasing availability of tools to fraudulently alter financial documentation all make the problem more common.”
Two thirds—or 66%—of property managers surveyed by Snappt say they’ve fallen victim to fraudulent rental applications. Here are the top five problems property managers are reporting from fraudulent lease applications:
Costs associated with having to evict bad tenants
Physical damage to the property
Missing out on renting to good tenants
Criminal activity at the property
Loss of reputation
It costs property managers an average of $7,685 per eviction, according to the report.
Landlords should always take the time to carefully research each application they receive and do all you can to protect your investments.
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Source: National Association of Realtors and Snappt