Risk Mitigation Moves to Front Burner as Fraud, Other Risks Increase

The fourth and final session of a recent four-part webcast series on the prospect experience took a bit of a curve towards a subject that impacts both renter and rental property: mitigating risks such as fraud, evictions, property damage  and other costly events. It’s the part of the renter experience right up front, as prospects are screened and identity- checked and insurance is put in place or verified – ideally, with the least amount of disruption, delay or friction. But it’s just as much about protecting the property as protecting the renter by shielding them from potential liability. Risky times for multifamily Recent market dynamics have driven leasing velocity higher; lots of people are moving around. And more leasing than ever is happening online, due both to convenience and the “touchless” aspect accelerated by the pandemic. Mike Mauseth, who serves as SVP of RealPage’s screening business, states that the good news is that solutions are available to mitigate all of these risks. “Every portfolio is unique and risk mitigation programs can differ a lot, so it’s important to work with a partner like RealPage that offers the whole array of options so you can customize your program to your business.” Trends in resident screening and ID verification With the FTC reporting a 60% increase in fraud in multifamily over the previous 12 months,  ensuring that the person who is applying is the person they say they are and will be a good, on- time paying resident is extremely important. Even more so when you realize that the average eviction-related expense runs between $5,000 and $15,000. The most significant recent advance in screening has been the introduction of artificial intelligence, as embodied in RealPage AI Screening. “AI does a better job of predicting future behavior than previous screening methods,” explained Mauseth. “It taps into a huge rental history database and tell...