Rental Application Fraud Costs Landlords Millions

Respondents reported they were forced to write off an average of $4.2 million. 

Responding to a survey conducted by the National Multifamily Housing Council between November 15, 2023 and January 9, 2024, 93.3% of owners/managers said they had experienced fraud in the past year – and that the level was on average 40.4% higher than the prior year. One of the most common types of fraud was fake or falsified pay stubs, employment references or other forms of income documentation, reported by more than 84% of respondents.

Misrepresenting information on applications came second, followed by identity theft, unauthorized cohabitants or sublets, and fraudulent checks.

Two-thirds of respondents said some locations appear to be more prone to fraud in applications and payments. Almost half of this group identified Atlanta as the worst offender, followed by Texas and Florida.

Landlords said fraudulent applications and subsequent failure to pay rent accounted for 24% of their eviction filings, with the same three locations responsible for many of them.