A new survey of rental housing providers conducted by the National Multifamily Housing Council (NMHC) found that nearly all respondents (93.3%) have been on the receiving end of fraudulent applications over the last 12 months.
The NMHC survey found 84.3% of respondents reporting they have seen applicants falsifying or fabricating pay stubs, employment references or other income documentation, while another 80% observed prospective renters misrepresenting information on applications. The survey also found 70% of rental housing providers dealing with identity theft, fraudulent ID documents or the use of another individual’s personal information from prospective renters.
Nearly one-quarter of the respondents’ eviction filings were linked to fraudulent applications and related failure to pay rent over the past three years, and the average respondent was required to write off nearly $4.2 million in bad debt over the past 12 months. Respondents also reported that approximately one-quarter of this bad debt, on average, could be attributed to nonpayment of rent due to fraudulent applications.
“There has been anecdotal evidence of the rise in fraudulent activity over recent years, but now we have clear evidence of the staggering impact of these crimes on the rental housing market,” said NMHC President Sharon Wilson Géno. “While most renters are honest, those who are not are causing the cost of rental housing to increase for everyone. Additional delays in many jurisdictions in the lease enforcement process, even when there is clear fraud, incentivizes bad actors and means that this illegal behavior costs responsible renters even more. We call on lawmakers and courts to take action that will address this problem.”
The survey was conducted between Nov. 15, 2023, to Jan. 9, 2024, and received responses from NMHC and National Apartment Association members representing 75 leading apartment owners, developers and managers.
