Affecting Multifamily Operators Nationwide
False documentation has become a significant headache for the rental housing industry. According to a recent survey by the National Multifamily Housing Council, 71% of rental housing providers have reported grappling with this issue over the last year.
Further, the survey found that 24% of eviction filings were linked to fake applications and not paying rent over the past three years. On average, these providers reported losing nearly $4.2 million in bad debt over the past year. About 25% of this bad debt was because of people not paying rent due to fake applications.
RealSource Properties' Smart Solution
To fight this growing problem, RealSource Properties has implemented an advanced identification platform. It works by scanning identification documents like driver's licenses and passports to make sure the person is who they say they are.
The system also checks income documents like pay stubs and bank statements to see if they have been changed or faked. Finally, it automatically calculates monthly income from the information provided, reducing mistakes that can happen during manual checks.
Keeping Up with Changing Tactics
The problem of fraud in rental housing is always changing, with new tricks being disseminated daily on Tik Tok and elsewhere. There is also a growing cadre of online tools that help people easily fake the documents needed for renter verification.
Because of this, rental housing providers need to stay alert and use advanced technology to stay ahead of fraudsters. RealSource will continue to be vigilant as tactics continue to evolve, ensuring its tools and processes stay far ahead of emerging threats from fake application documents.