In light of this concerning trend plaguing the real estate industry, particularly in the multifamily sector, it’s evident that robust measures must be put in place to safeguard against such threats. Thankfully, there are more proactive solutions than ever that owners and property managers can use to protect the rent rolls of their real estate holdings, including: Be diligent in accepting cashier’s checks as payment for the application fee, first month’s rent, or security deposit. This payment method, which was previously regarded as safe, has become more prone to fraud, so steps like calling a bank to verify should be taken. Pick up the phone and call employers upfront to make sure the applicant is working where they say they are. A simple check can quickly reveal fraudulent employment history. Raise the bar for applicants by asking for two or more months of pay stubs or bank statements, along with an application. One month’s worth of fake documents is easier for fraudsters to supply than two or more. Tie future bonuses to a rental property’s on-time rent payment score, not just new leases. This incentivizes your team to prioritize legitimate applications and be more discerning in evaluating potential residents. Incorporate rent guarantee programs, which can assess risks and provide rent guarantees through an independent agreement with the prospect. These programs reduce the risk of nonpayment. Empower on-site management to identify fraudulent activity and reward them when they implement best practices. The on-site team is one of the most important components of fraud prevention, and they should be trained and incentivized accordingly. Be an early adopter of fraud prevention programs and continue to refine your operations to stay in front of the market. Fraudsters are becoming more sophisticated as the industry improves its screening practices, making it crucial to explore new prevention technologies early and often. Perform a regular analysis of resident payment trends. The sooner you identify a negative trend, the quicker you can pivot your strategy and reduce future payment issues. Implement strong operating procedures with a focus on separation of duties. Always have more than one employee involved in the application and application approval process to ensure multiple steps of review and eliminate the possibility of employee participation in any fraudulent practices." https://lnkd.in/eAZxUUph