Landlord Warning! Don’t Be A Victim Of Rental Application Fraud! Rental Application Fraud Increased By 9% In April
MFI-Miami has issued a Landlord Warning to landlords. Why? Real estate tech company Snappt is reporting some disturbing news about rental application fraud. The company found rental application fraud has risen 9% since the COVID-19 pandemic began.
Snappt surveyed 100 residential property managers who manage more than 1,000 units. Snappt data shows 66% of the property managers surveyed had been victimized by fraudulent applications.
Fraudulent applications often lead to evictions. The survey also shows property managers estimate almost 1/3 of evictions are due to fraudulent applications. Most people don’t understand that evictions are expensive. Landlords on average pay $7,685 to evict a bad tenant.
The cost could go higher if a tenant understands and knows how to manipulate the legal system. If someone understands the law, they can stop paying and live rent-free for six months while the eviction winds its way through the court.
MFI-Miami also issued this landlord warning because managers report 15% of their online rental applications show proof of obvious fraud. Property managers also estimated that an additional 10% of the applications contained hidden fraud. In those cases, tenants were careful to hide it. Property managers found the carefully hidden fraud while the application was being processed or after the tenant moved in.
Snappt CEO Daniel Berlind tod Housingwire:
Property owners also face additional costs with having to evict bad tenants. Landlords say the top problems resulting from fraudulent rental applications include physical damage to the property. Landlords are also missing out on renting to good tenants. Property owners also face criminal activity at the property and loss of reputation.