Make Rental Fraud Prevention a Priority by Removing 3 Common Barriers

Rental fraud is on the rise, impacting the residents, reputation and workflows of multifamily businesses. In addition, it has impacted overall financial results by more than 10%, according to one of the industry’s largest fraud studies. As discouraging as that stat may be, the good news is you can prioritize rental fraud prevention by removing three common barriers – no effective way to measure fraud, no team buy-in, and no easy and consistent fraud prevention process. 3 common barriers impeding fraud prevention Can you identify with any of these? Barrier #1: Insufficient tracking of fraud metrics Fewer than 1 in 4 (22%) of study participants have formal metrics for tracking rental fraud and its business impact – 2024 National Multifamily Fraud Research Study If companies rely on informal methods of tracking rental fraud – or worse, don’t track it at all – they’re missing critical metrics. What doesn’t get measured doesn’t improve, so businesses can’t identify the true impacts of fraud for all their properties when they aren’t tracking important fraud prevention KPIs. Barrier #2: Employees not trained to combat fraud If leasing teams push through unqualified prospects, they may be filling vacant units with potential fraudsters. When onsite staff aren’t bought in on prevention, they aren’t motivated to look for and report signs of rental fraud. Barrier #3: Inconsistent & complicated fraud reduction processes 87% of study participants report applicants find processes for reducing fraud tedious and frustrating, while 86% report application reviewers find it tedious and frustrating. – 2024 National Multifamily Fraud Research Study If a current validation solution isn’t doing what it should do, it’s probably using ineffective methods. When a company sees inconsistent processes and standards for each property or loses qualified prospects because of complicated...