Rently’s Post

“Rampant, Increasing Fraud Impacting Rental Housing Costs” The National Multifamily Housing Council NMHC article posted in the comments below 👇 underscores a crisis in the rental housing market due to widespread fraud in rental applications, finances, and identity. Data from the NMHC Pulse Survey reveals the extensive impact on housing providers, tenants, and communities. The article highlights the growing prevalence of rental fraud, partly driven by social media platforms like TikTok and Instagram. A significant 93.3% of respondents reported experiencing fraud in the past year. Forms of deceit include falsifying documents (84.3%), misrepresenting information on applications (80.0%), and identity theft (70.0%). The survey shows alarming consequences of widespread fraud: 70.7% report a surge in fraudulent applications and payments, raising rental costs and destabilizing communities. Rental providers suffer an average loss of $4.2 million in bad debt, largely due to nonpayment from fraudulent applications. The link between fraudulent applications and eviction filings highlights how fraud exacerbates housing instability. On average, 23.8% of eviction filings are due to fraudulent applications, deepening housing insecurity and financial strain. The article delves deeper into the impact of rental fraud and bad debt, showing widespread fraud across jurisdictions. Atlanta is highlighted as a hotspot, with almost half of respondents noting increased fraud. Additionally, eviction moratoria worsen challenges for rental providers, unintended consequences of crisis regulations. Urgent action is crucial to tackle rental fraud's root causes and alleviate its damaging effects on housing providers, tenants, and communities. Strengthening regulations, enforcing laws, and enhancing transparency in rental applications are vital steps to restore integrity and stability in the housing market, ensuring everyone's right to safe, affordable housing. How do you think regulatory measures can be strengthened to address this pressing issue and ensure housing stability for all? Share your insights in the comments below 👇! 🏡💬 Please like 👍, comment below 👇, or share 👉. Click the 🔔 in my profile to get notified of my posts. And follow me for more content like this. #home #multifamily #homerental #buildtorent

#Inflation, #undersupply, #highdemand and exorbitant #homeprices are often reasons cited for why rents are high. But there’s one other reason: rampant fraud. Since the pandemic, rental fraud has exploded nationwide. Nearly all respondents (93.3%) to a survey of members of the National Multifamily Housing Council and the National Apartment Association (Naahq) representing 75 leading apartment owners, developers and managers, reported experiencing fraud in the past twelve months, according to the NMHC poll taken between November and January. The fraud occurs when people use false identities to rent an apartment under false pretenses or for criminal purposes, owners and property managers say. Medora Lee explains why frauds are surging:

Leasing fraud is a significant issue often overlooked outside the industry, impacting both housing operators and honest renters. USA TODAY recently shed light on this problem, highlighting its detrimental effects, including financial losses for landlords and increased rent for honest tenants. The rise in sophisticated fraud schemes, such as identity theft, poses dangers beyond financial implications, including criminal activity and property damage. Addressing fraud is crucial for protecting the integrity of the rental market and ensuring fair treatment for all renters. Deploying cutting-edge technological solutions like those provided by VERO can effectively combat application fraud, dramatically slashing the risk of evictions and easing operational strains for your team in the foreseeable future. Let's work together to combat fraud and safeguard the rights of honest renters. #FraudPrevention #TechSolutions #RentalFraud #HousingSecurity #ApplicationFraud #TenantProtection #VerifyingTenants #TechInRealEstate #FraudDetection #PropertyManagement #TenantScreening #HousingMarket #RealEstateTech #FairHousing #ProtectingRenters

There is an increasing prevalence of rental scams and the impact they have on both landlords and renters. This article highlights the various tactics scammers use, such as fake rental listings and identity theft, to exploit unsuspecting individuals. From a fraud mitigation perspective, it emphasizes the importance of verifying identities, using secure payment methods, and exercising caution when dealing with unfamiliar parties. Landlords and renters are advised to be vigilant, conduct thorough background checks, and take steps to protect their personal and financial information to avoid falling victim to these scams. #fraud #identity #verification #rent #leasing

🕵️♂️ The Phantom Landlord Scam: What You Need to Know 🕵️♀️ Navigating the UK rental market is challenging enough without falling victim to fraud. One of the most damaging scams out there today is the Phantom Landlord scheme, where scammers pose as landlords or letting agents, tricking tenants into renting properties they don’t own. Here’s a breakdown of how this scam typically unfolds and how to protect yourself: ⚠️ How the Phantom Landlord Scam Works: 1. Fake Property Listings: Scammers find a vacant or accessible property and list it at an appealing rate. They create fake rental agreements, post polished photos, and make it seem like a legitimate opportunity. 2. Creating Urgency: They pressure you to act quickly, claiming high demand for the property. This sense of urgency is meant to discourage you from double-checking details. 3. Temporary Access: Sometimes, they conduct a viewing or provide keys (often duplicated) to make everything appear credible. 4. The Move-In and Aftermath: You move in, pay your deposit and first month’s rent, and settle down—only to be confronted days or weeks later by the real owner, who has no knowledge of the agreement. The result? You’re often forced to vacate, losing your money and housing security. 🛡️ How to Protect Yourself from the Phantom Landlord: 1. Verify Ownership: Always ask for proof of ownership, like a land registry record or property deed. 2. Stick to Registered Agents: When possible, work with reputable letting agents registered with organisations like Propertymark. 3. Meet the Landlord in Person: If possible, meet the landlord or request ID. Scammers often avoid face-to-face meetings to avoid scrutiny. 4. Be Cautious with Payments: Use traceable payment methods (like bank transfers) instead of cash to ensure a paper trail. 💬 The Bottom Line: Scammers exploit the high demand and competitive rental market by preying on those eager to secure housing. Awareness is your best defense against falling for the Phantom Landlord scheme. By taking extra steps to verify details and staying vigilant, you can protect yourself—and help others avoid the same fate. Stay safe, and spread the word to ensure we’re all protected in the search for a place to call home. 🏠 #RealEstate #PhantomLandlord #RentalScam #UKHousing #TenantProtection #PropertySafety #RentSmart

Leasing fraud is the big thing no one outside the industry wants to talk about, so I was pleasantly surprised to see this story in USA TODAY showing how the rapid rise in fraud hurts not only rental housing operators, but also honest renters. A few key takeaways: 1) From the article: "Fraud is bad for everyone. Landlords lose money and time evicting fraudsters, and honest renters may experience rent increases to compensate, property managers and industry experts said. Even worse, honest renters and staff may have to deal with unruly and sometimes, dangerous neighbors." 2) Cynics will try to romanticize leasing fraudsters as Jean Valjean in Les Misérables, honest folks committing a petty crime out of desperation. But rarely is that the case. That is more likely to occur in the form of old-school fudged incomes or references (which have been around forever), whereas the bigger problem today is fraudsters purchasing sophisticated fraudulent leasing packages that include stolen or synthetic identities. Victims can include those whose identities were stolen who never set foot at a property, yet suddenly find credit scores dinged or eviction filings on their record. 3) When you lease under a stolen identity, there's no fear of consequence for bad behavior at the property because no one knows who you really are. From the article: "Property managers have reported fraudsters dealing drugs, trafficking sex, partying, renting out units they don’t pay for, destroying the apartments, and owning guns ... Fearful staff and honest tenants may leave and tell others to avoid the building, hurting future revenue, too, property managers said." 4) Fraud backfires on honest renters -- leading to higher rent, tougher screening standards and lesser housing. From the article: -- "A 2022 study by the Urban Institute, a non profit think tank, that looked at the effects of COVID on housing showed landlords who missed rental payments were more likely to raise rents by higher percentages and were more stringently screening tenants." -- "Fraudsters also exacerbate the affordable housing shortage, housing experts say. They’re occupying units that honest people could use." The COVID-era focus on tenant protections -- while well-meaning -- swung so far in some cities that it became destructive to its own cause. There's no doubt that honest renters suffer in multiple ways when cities and states turn a blind eye to fraud or (even worse) romanticize it. Let's protect honest renters struggling to get by, yes. None of this takes away from that. In fact, by addressing fraud, it should allow better focus on at-risk renters. Combatting fraud should be a no-brainer common sense thing to do, and surely it can be done in ways that protect all sides. #rentalhousing #apartments #SFR https://lnkd.in/gy4-jXP2

In 2023, almost 1.8 million SGD was lost by 300 people to rental scammers. If you are a tenant in Singapore looking to rent your next room, here are the top 5 steps you can take to prevent being scammed Step 1: Avoid Facebook or Carousell Listings if possible Majority of scams take place via Facebook or Carousell listings. If possible, go through Propertyguru, 99.co or SRX Websites as only approved agents can list properties there. Step 2: Check CEA Registry of Agent The agent should have a valid record. Check CEA Registry on the validity of their license with their Name, Contact Number or CEA License Number. Generally, if they are anxious to show you a picture of their CEA identity card, it's a scam. Step 3: CEA Identity Card On viewing day, the agent should be wearing a lanyard with the CEA identity card to identify as a registered agent. A common scam tactic is to tell you that their assistant will show the unit on their behalf. They are not allowed to do that. Step 4: Check the Tenancy Agreement Check for unusual clauses and inconsistencies in the tenancy agreement. Compare it with the standard one from Council of Estate Agencies (CEA). Check for skewed logos or clauses that make no sense at all. It's a tell-tale sign of a scam. Step 5: Check Owner IC and Ownership If the property is represented by an owner and no agents are involved, check the validity of the owner's IC as well as the ownership of the property. If you are interested, I've created a short PDF download where I've included links to do all the necessary checks on the agent and owner to prevent you from being a victim of rental scam. You can download it here: https://lnkd.in/g6Y9Cp4x

“93.3% of members of the National Multifamily Housing Council experienced renter fraud in 2023, while 70.7% saw an increase in fraudulent activity during the same timeframe.” Renter fraud is running rampant and the likelihood of it magically making a reversal is not realistic. The renter fraud market seems to have advanced beyond the fraud detection services. There are emerging services seeking to provide additional screening levels to filter out bad actors. It remains to be seen how elimination of application fraud can be achieved. #RentFraud #Technology

How to combat paystub fraud With rental fraud becoming more frequent, managers need to be able to see the signs before eviction is the only option.

🚨 SCAM ALERT: Fake Rental Listings 🚨 Attention Vancouver lower mainland renters! We have been alerted to a scam targeting renters in the Vancouver area using our company's name and brand reputation. A person is posing as a homeowner living in Spain, offering apartments for rent in various locations within the lower mainland. Here’s what you need to know: Scammer Tactics: - The scammer claims to be working with Century 21 to coordinate viewings and rental agreements. - They state that Century 21's Terms and Conditions require the first month’s rent and a damage deposit to be paid upfront to receive a viewing, the apartment keys, the lease agreement, and other documents. - They promise that the full amount will be refunded if you choose not to proceed after viewing the apartment. IMPORTANT: - Century 21 does not operate this way. We never ask for payments upfront in this manner. - Always verify the authenticity of rental listings via https://www.c21.ca/search - If something feels suspicious, it probably is. Contact your local CENTURY 21 office to verify https://lnkd.in/gUknKT9c What You Should Do: - Do Not Send Money: Never send money or personal information to unknown parties. - Verify Listings: Contact Century 21 directly to verify the legitimacy of any rental listing. - Report Suspicious Activity: If you encounter this scam, report it to the platform on which the listing was posted. Your safety and trust are our top priorities. Please share this message to help protect others from falling victim to this scam. Stay vigilant!