Fraud in the rental housing industry continues to affect businesses and professionals. According to a new survey of National Apartment Association (NAA) and National Multifamily Housing Council (NHMC) members, 93.3% of the 75 owner, developer and manager respondents reported experiencing fraud in the past 12 months.
The most common type of fraud was falsifying pay stubs, employment references or income documents, mentioned by more than 84% of respondents. More than 70% of respondents said fraudulent applications and payments increased during the past 12 months. Less than 20% reported no increase.
Of those who witnessed an increase in fraudulent applications, two-thirds reported it varied by location. Nearly 60% of respondents reported an increase in nonpayment of rent due to fraud.
Additional resources:
Synthetic Fraud: How to Identify, Respond To & Prevent It