Landlords Struggle With Rental Fraud as Scammers Begin Using AI
Summary
Rental fraud is on the rise, with scammers using AI to create falsified documents and steal identities. Hosts, especially those with smaller operations, should be vigilant and consider steps like in-person viewings and using third-party verification services to protect themselves.
Key Insights
- •In some cities, like Atlanta, around half of rental applications are flagged as fraudulent, highlighting the severity of the problem.
- •Nearly 95% of landlords have experienced rental fraud in the past year, with the most common form being falsified documents like pay stubs and employment references (84.3%).
Action Items
- ✓Follow up by calling publicly listed business addresses (not personal phone numbers) to verify information provided.Effort: lowImpact: medium
- ✓Insist on in-person viewings with prospective tenants to gauge their personality and ensure they are serious about renting.Effort: lowImpact: medium
- ✓Consider outsourcing identity and income verification to third-party companies and background checks to services like TransUnion SmartMove and Checkr.Effort: mediumImpact: high
Tools & Resources
- →Snappt: Snappt is an identity and income-verification software firm.
- →TransUnion SmartMove: Consider background checks to services such as TransUnion SmartMove and Checkr.
- →Checkr: Consider background checks to services such as TransUnion SmartMove and Checkr.
Common Mistakes
- ⚠Accepting money from a tenant before a lease is signed could set a landlord up for a scam.
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