The convenience of online rent payments and applications comes with a significant downside: increased risk of fraud. Fraudulent applications can severely impact your business’  bottom line, leading to delinquent rent payments, costly evictions, frustrated residents, and damage to your property's reputation.  It's estimated that evictions due to late payments cost an average of $7,500 each, and with millions of evictions occurring annually in the US, the financial burden is immense.

Our latest ebook, Preventing Fraud in Multifamily: How to reduce the risk of fraudulent applications and payments, explores the various types of application fraud, including first-party fraud, identity theft, identity manipulation, and synthetic fraud. Synthetic fraud, where fraudsters create entirely new identities, is particularly concerning as it can be difficult to detect and poses risks not only to your business but also to the safety of your residents.

To combat this growing problem, it's crucial to implement robust fraud prevention measures.  Thorough initial screening goes beyond simple credit checks. You also need to verify applicant information, check their online presence for inconsistencies, and consider manual screening when necessary.  Technology can automate much of this process, flagging suspicious applications and triggering additional verification steps.

Income verification is another critical component of fraud prevention. For large payments like security deposits, consider requiring certified funds. For recurring rent payments, leverage solutions that verify bank account information and available funds in real-time. This proactive approach can drastically reduce payment returns and save your team valuable time and resources.

Entrata offers a suite of tools to help you mitigate fraud risk.  ResidentVerify automates applicant screening, allowing you to customize criteria and seamlessly integrate verification into your workflow.  ResidentPay provides real-time account and funds verification, minimizing fraudulent payments and reducing the need for manual follow-up.  Additionally, Entrata's partnership with Snappt provides an alternative income verification method for applicants who prefer not to share banking details.

By implementing these strategies and leveraging technology like Entrata, you can significantly reduce the risk of fraud, protect your business, and provide a safer and more secure environment for your residents.

‍Download the complete ebook "Preventing Fraud in Multifamily" to learn more about safeguarding your business from fraudulent applications and payments.