RealPage Survey Reveals Multifamily Fraud Is on the Rise

(Image courtesy of RealPage)

RealPage, Richardson, Texas, found more than 75% of survey participants report an increase in rental fraud in their multifamily communities in the past year.

However, “the most alarming surprise in the nationwide findings from 402 multifamily professionals isn’t that 75% saw more rental fraud in the past year,” said Josh Albrechtsen, RealPage SVP and GM, Front Office. “The real eye-opener is how much more organized, diverse and difficult to discover the fraud is–resulting in extended damage to revenue, reputation and residents.”

Per the survey, 97% of respondents report that reducing renter fraud is a top priority for their companies. But, only 17% have a portfolio-wide fraud prevention initiative, and only 22% have formal metrics for tracking rental fraud and its impact on business.

Most respondents said they do train employees to identify fraud, but 43% say their site staff aren’t financially motivated to prevent it.

Additionally, 77% believe rental fraud currently reduces income and/or increases costs by 10-20%.

Seventy-three percent say more than half of rental fraud is detected after residents have already moved in.

More than 50% report damage to property or reputation harm from rental fraud.

Among the types of fraud, 58% reported seeing fake or manipulated identities, 57% reported misrepresented income, 53% reported identify theft and 51% reported site staff pushing through unqualified candidates.