Tenant Application Fraud is a Fact of Life.

[Kyle Mccaw]

Rental fraud is a growing problem in the real estate market. According to Snappt's Top Twenty Fraudulent Cities for 2022, the Dallas-Fort Worth (DFW) metro area has the third highest fraud rate in the nation, with 13.2% of all rental applications being fraudulent.

The primary cause of such a high fraud rate can be attributed to the booming population growth in the region. As more people move to the DFW area, the demand for rental properties increases, creating an opportunity for scammers to take advantage of unsuspecting consumers.

In addition to population growth, the rapid development of technology has enabled scammers to become more sophisticated and successful in their fraudulent activities. By using fake identities, stolen credit cards, and other methods, scammers are able to bypass traditional security measures such as background checks and credit checks. This means that they can more easily get away with signing up for rental properties without actually paying rent or providing proof of income.

Landlords and property managers can take steps to protect themselves and their tenants from rental fraud. First, they should always require prospective tenants to submit a detailed rental application that includes proof of income and background checks. Additionally, they should use a secure online platform to manage their rental applications and screening process. There a numerous proptech companies that are focused on providing services to catch fraud fast.