Unfortunately, combatting online fraud is a new way of life for property management companies.
Earlier this year, we reported 95% of property management companies had experienced fraud in the past two years, according to Forrester research — with a surprising 80% reporting they dealt with it more than 20 times.
On a global scale, we’ve seen the volume, scope and sophistication of online fraud rise for just about every industry — property management being no exception. Feeding renters’ demand for a seamless online experience is no doubt behind the spike in fraud. Renters expect to find an apartment, apply online, sign leasing agreements and pay their rent all from their phones — and the industry is making it happen.
So, we were curious: What are property management companies doing to battle fraud while providing customers with the experience they want? To get some answers, Forrester Consulting conducted a study for us. Here’s what we learned:
Discovering fraud still takes too much time
More than half (54%) of property managers reported they “spend excessive time” comparing applications to find discrepancies — and those are managers practicing due diligence. Most companies just don’t have the time, resources or know-how to spot red flags and conduct the appropriate research. Or, they feel pressure to fill their units fast and skip important steps. That’s likely why so many fraud cases go unnoticed until the fraudster moves in.
Fear of losing quality tenants is a big concern
Most property managers believe they’re doing an adequate job of identifying fraud; however, they also worry they may be driving good tenants away. The lengthy application process and extra steps required often lead to abandonment and attrition.
For 85% of property managers, ease of use (specifically for applicants) is a top priority when it comes to a fraud technology solution. That means real-time verification and screening tools that don’t impact the customer experience like those we offer at TransUnion.
For more information, check out this infographic.
And to learn more about TransUnion identity verification and credit screening solutions — that can help you reduce fraud and fill your units with quality tenants — visit our Resident Quality Management information page.