Agents bridge landlords and renters and must do more than fill vacancies by maintaining awareness, diligence, and current education on fraud prevention and compliance. Fraud affects landlords of all sizes, with surveys finding widespread fraudulent tenant documents and false income or employment claims, and losses of $1,000 to $5,000 per fraudulent tenant. Manipulated documents appeared in 6.4 percent of rental applications in 2024. Fake listings have driven a 45 percent increase in rental scam complaints, causing many victims to lose deposits or first-month rent. Advanced screening tools with ID verification, document authentication, and income validation help protect landlords and legitimate renters, while educational resources support agents and small landlords.
These numbers show why agents can't rely on outdated screening methods or assume fraud is only a problem for large operators. While big players like Invitation Homes and Progress Residential use AI-powered verification and document authentication at scale, more than 80 percent of SFR properties are still in the hands of small landlords, many of whom lean on their agents for guidance and protection.
The risks don't stop with applications. Fake listings have surged, leading to a 45 percent increase in rental scam complaints to the FTC and Better Business Bureau over the past two years. Victims often lose security deposits or first-month rent payments before realizing they've been duped. Nearly half lose $1,000 or more, and 8 percent lose over $5,000. For agents, the takeaway is clear: knowing how to spot fraud and educate clients on prevention can be a real value-add.
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