For any industry that relies on applications and credit checks, fraud is always a risk. This is especially true for the multifamily industry, which has seen a sharp increase in fraud over recent years.

The 2022 Snappt State of Apartment Tenant Screening Survey found that 85% of managers felt applicants were becoming more comfortable with committing fraud.

So, why is this type of application fraud growing, and how can property managers combat it? This article will explain everything you need to know about the problem.

Why is application fraud on the rise?

The U.S rental housing market is the most competitive it's been for some time. For example, through the first half of 2022, on average there were 14 applicants competing for one rental property. In such a competitive market, applicants with bad credit or criminal history may often seek illegitimate means to get approved.

How can property owners stay protected?

There are a few things property owners and managers can do to stay protected against multifamily application fraud.

Guarantee your rental income

Use TheGuarantors' suite of products to increase conversions and approvals for renters while increasing your protection from potential risk of default and/or damages. All at no cost to you.

Our Lease Guarantee product utilizes tech-enabled insurance to approve more quality renters while ensuring you receive tailored coverage that will stabilize your bottom line, decrease bad debt, and increase NOI, regardless of the economic environment.

Run background checks

Background screening is your best way of vetting and weeding out false information on an application. Although new tenant screening laws mean property owners have to be more sensitive about criminal background and previous eviction checks, you should still conduct due diligence reviews.

Verify all documents and information provided by applicants

Now that the threat of COVID has reduced, it's easier to request face-to-face applicant meetings. These give managers the vital chance to interact with renters and verify their documentation in person. Don't be afraid to conduct thorough checks of easily forgeable documents like pay stubs, photographic ID, and bank statements.

This collection of measures can help property owners protect themselves against multifamily application fraud.