Hyland 160x1200

Hyland 160x1200

Hyland 705x108

Wednesday, 27 July 2022 09:25

Multifamily rental property managers report increasing prevalence of application fraud

By Snappt

GUEST RESEARCH: 85% of respondents saw an increase in application fraud and an increase in the ease of altering financial documentation

Snappt, the leader in application fraud detection for residential apartment property managers, today released the 2022 State of Apartment Tenant Screening Survey. The survey shows that 85% of property managers feel consumers are becoming more comfortable with committing application fraud. The pandemic has made things difficult for MDU property managers. Fraud has risen, government-mandated eviction moratoriums have squeezed landlords, and now rents are rising. The average tenant can doctor a paystub or bank statement in minutes to improve their financial picture, and the result is often impossible to spot with the naked eye. Snappt has scanned more than one million financial documents, finding that one in eight has been fraudulently altered. With 3.7 million residential evictions filed every year, costing an average of $7,500 each, evictions are the single highest cost property managers face.

“Application fraud is more prevalent than you would think, especially in a world of online applications," says Daniel Berlind, CEO of Snappt. "We estimate 11 million fraudulent applications were submitted last year in the U.S. alone.”

Never has the need to accurately screen applicants been so important. Survey results show that the most common goals property managers have when screening applications include:

  • Make sure applicants have the financial resources to pay rent
  • Avoid evictions
  • Reduce criminal activity
  • Avoid disruptive tenants
  • Avoid property damage

One property manager in Texas reported, “the amount of fraud that has come through lately has tripled and we have to carefully, with a fine-tooth comb, review everyone’s check stubs.”

The most common problems property managers report facing in today’s market include:

  • Rent-related issues. Tenants being late on rent payments, paying less than full rent and (worst of all), stopping rent payments completely.
  • Damaged Properties. Increasingly, property managers are seeing the damage done to properties after tenants move out.
  • In today’s world – with the pandemic, rising rents and an increase in fraud, evictions are becoming more common.
  • Tenants skipping out.
  • Disruptive tenants/criminal activity.

The problem has been compounded by the rapid adoption of proptech during the pandemic and how easy it is to obtain or create fake documents. Property managers reported that the most crucial aspects of applicant screening they use to address this issue include:

  • Verify ID is accurate
  • Verifying the paystub is accurate
  • Verifying the bank statement is accurate
  • Check prior evictions
  • Credit check

But with a large list of screening requirements and available tools, we asked what takes the most staff time to verify applicants:

  • Verify the bank statement is accurate
  • Verify the pay stubs are accurate
  • Checking references

The full 2022 State of Apartment Tenant Screening Survey is available at https://www.snappt.com/state-of-apartment-tenant-screening-2022-survey. The free report includes a list of top strategic tips property managers can take to detect fraud and decrease evictions.

Additional Resources:

Snappt: Blog

Snappt’s LinkedIn

About Snappt

Snappt, a Los Angeles based real estate technology company, provides a quick and inexpensive data-driven fraud detection service that can accurately spot fraudulent documentation. Snappt is used by four of the top five property management firms in the U.S.

Read 940 times

Please join our community here and become a VIP.

Subscribe to ITWIRE UPDATE Newsletter here
JOIN our iTWireTV our YouTube Community here


Thoughtworks presents XConf Australia, back in-person in three cities, bringing together people who care deeply about software and its impact on the world.

In its fifth year, XConf is our annual technology event created by technologists for technologists.

Participate in a robust agenda of talks as local thought leaders and Thoughtworks technologists share first-hand experiences and exchange new ways to empower teams, deliver quality software and drive innovation for responsible tech.

Explore how at Thoughtworks, we are making tech better, together.

Tickets are now available and all proceeds will be donated to Indigitek, a not-for-profit organisation that aims to create technology employment pathways for First Nations Peoples.

Click the button below to register and get your ticket for the Melbourne, Sydney or Brisbane event



It's all about Webinars.

Marketing budgets are now focused on Webinars combined with Lead Generation.

If you wish to promote a Webinar we recommend at least a 3 to 4 week campaign prior to your event.

The iTWire campaign will include extensive adverts on our News Site itwire.com and prominent Newsletter promotion https://itwire.com/itwire-update.html and Promotional News & Editorial. Plus a video interview of the key speaker on iTWire TV https://www.youtube.com/c/iTWireTV/videos which will be used in Promotional Posts on the iTWire Home Page.

Now we are coming out of Lockdown iTWire will be focussed to assisting with your webinars and campaigns and assistance via part payments and extended terms, a Webinar Business Booster Pack and other supportive programs. We can also create your adverts and written content plus coordinate your video interview.

We look forward to discussing your campaign goals with you. Please click the button below.


Share News tips for the iTWire Journalists? Your tip will be anonymous




Guest Opinion

Guest Interviews

Guest Reviews

Guest Research

Guest Research & Case Studies

Channel News