Property

Rental fraud surges reshaping the US housing market amid growing security concerns

Monday, 27 October 2025 5:06AM UTC

A rise in rental fraud cases, exemplified by a Florida property manager’s experience, highlights the escalating risks in the US rental market, prompting landlords and investors to seek advanced security measures and alternative investment routes.

What began as a routine day for property manager Jared Decker in Tampa, Florida, spiralled into a prolonged ordeal emblematic of the widespread rental fraud plaguing the real estate market. Decker’s experience started when a businessman, entirely unknown to him and never a tenant in any of his managed properties, contacted him about $10,000 mysteriously missing from his bank account, having ostensibly been paid as rent to Decker’s Coastal Pioneer Realty. The unsettling reality was that the businessman’s identity and bank details had been stolen to fraudulently rent a property from Decker’s portfolio. Ultimately, the property's real owner, a small landlord, bore the brunt of the fallout, enduring unpaid rent, legal fees, and the complexities of eviction proceedings. This case is a stark illustration of the escalating challenges landlords confront amid surging rental fraud, causing many to reconsider the risks inherent in direct property ownership.

Rental fraud has become alarmingly prevalent, significantly altering the landscape of the rental market. A 2024 survey by the National Multifamily Housing Council (NMHC), representing major apartment owners and managers, disclosed that over 93% of its members encountered some form of fraud in the previous year. Supporting this, a RealPage study highlighted that 75% of property managers in major metropolitan areas, including Houston, Los Angeles, and Atlanta, reported a notable surge in scams involving multi-family housing units. Indeed, a Greystar executive revealed that in parts of Atlanta, as many as half of all rental applications exhibit signs of fraud. Since the pandemic, rental processes moving online have exacerbated this trend, making it simpler for fraudsters to forge documents like pay stubs and bank statements, sometimes even leveraging “template farms” for mass production of counterfeit materials.

Industry experts, like rental consultant Jay Parsons, have identified rental fraud as a grave yet under-discussed problem contributing to a worsening housing crisis. When fraudulent tenants slip through screening measures, landlords face unpaid rent, legal expenses, and extended vacancies while tenants are held up in eviction processes. Some fraudulent occupants even engage in criminal activities within these units. To recoup losses, landlords often raise rents or increase application fees, further squeezing an already strained rental market. According to Zillow, rents have escalated by over 25% since 2020, with fraud-induced cost pressures compounding affordability issues. For renters, this means more costly and arduous application processes, as landlords tighten scrutiny through longer forms, intensified verification requirements, and automated screening systems designed to detect fraud earlier.

To mitigate these risks, property managers are increasingly relying on advanced technology, including identity verification tools and sophisticated document scanning software, alongside traditional verification like in-person meetings and thorough application reviews. Continual education about emerging scams and regularly updated fraud prevention protocols are critical to safeguarding landlords and tenants alike.

For investors wary of the inherent risks in direct rental property ownership, several safer real estate investment options are increasingly popular. Crowdfunding platforms like Fundrise allow individuals to invest modest sums into diversified portfolios of residential and commercial properties, removing the burdens of direct management. Lending models, such as the Arrived Private Credit Fund, offer investments in short-term, property-backed loans with historically steady dividend yields. Fractional ownership opportunities through companies like Mogul afford access to high-quality rental properties with lower capital requirements. Additionally, innovative models tapping into home equity, like Homeshare’s U.S. Home Equity Fund, enable investors to participate in home appreciation without buying physical properties outright. For those interested in commercial real estate, grocery-anchored shopping centres—which maintained over 90% occupancy even during financial crises—represent a resilient niche, accessible through partnerships such as First National Realty Partners with a higher investment threshold.

These alternatives provide ways to profit from real estate without assuming the direct risks tied to rental fraud and landlord responsibilities. Nevertheless, all investments carry inherent risk, and it is vital for investors to thoroughly understand the terms, timelines, and potential returns before committing funds. Meanwhile, landlords would do well to learn from Jared Decker’s harrowing experience as a cautionary tale underscoring the necessity of vigilant fraud detection and prevention practices in today’s rental markets.

📌 Reference Map:

Paragraph 1 – ^[1] (AOL), ^[2] (MultiHousing News)
Paragraph 2 – ^[1] (AOL), ^[3] (Multifamily Executive), ^[6] (Checke.me)
Paragraph 3 – ^[1] (AOL), ^[3] (Multifamily Executive), ^[4] (Experian)
Paragraph 4 – ^[2] (MultiHousing News), ^[4] (Experian)
Paragraph 5 – ^[1] (AOL), ^[5] (Multifamily Executive)
Paragraph 6 – ^[1] (AOL)

Source: Noah Wire Services

More on this

https://www.aol.com/articles/scammers-hijacking-rental-market-fake-120000734.html - Please view link - unable to able to access data
https://www.multihousingnews.com/rental-fraud-3-ways-to-avoid-being-a-victim/ - This article discusses the rising incidence of rental fraud and offers strategies to mitigate risks. It highlights that 93.3% of rental housing providers experienced fraud in the past year, with 84.3% encountering falsified income documentation. The piece emphasizes the importance of leveraging technology, such as identity verification tools and document scanning software, alongside traditional verification methods like in-person meetings and thorough application reviews. Staying informed about emerging scams and continuously updating fraud prevention practices are also recommended to protect against fraudulent activities.
https://www.multifamilyexecutive.com/business-finance/business-trends/nmhc-survey-reveals-surge-in-rental-fraud_o - A survey by the National Multifamily Housing Council (NMHC) reveals a significant increase in rental fraud, with 93.3% of respondents reporting such incidents in the past year. The survey also indicates that 70.7% of respondents observed a rise in fraudulent applications and payments, with a 40.4% average increase year-over-year. Notably, 23.8% of eviction filings over the past three years were linked to fraudulent applications and subsequent rent non-payment. The article underscores the growing challenges landlords face due to these fraudulent activities.
https://www.experian.com/thought-leadership/business/rental-technology-fraud-defenses-infographic - Experian's infographic highlights the escalating issue of rental fraud, noting that 93% of rental companies reported fraud in the past year. The infographic details various fraudulent activities, including falsified income documentation and identity theft, and emphasizes the financial impact, with evictions costing over $3,500 each due to misrepresentation. It advocates for strengthening fraud defenses in rental technology to detect fraud early, protect revenue, and maintain seamless leasing experiences, thereby mitigating the risks associated with fraudulent activities.
https://www.multifamilyexecutive.com/business-finance/business-trends/nmhc-survey-reveals-surge-in-rental-fraud_o - A survey by the National Multifamily Housing Council (NMHC) reveals a significant increase in rental fraud, with 93.3% of respondents reporting such incidents in the past year. The survey also indicates that 70.7% of respondents observed a rise in fraudulent applications and payments, with a 40.4% average increase year-over-year. Notably, 23.8% of eviction filings over the past three years were linked to fraudulent applications and subsequent rent non-payment. The article underscores the growing challenges landlords face due to these fraudulent activities.
https://www.checke.me/apartment-rental-fraud-becoming-increasingly-sophisticated/rental-application-fraud-costs-landlords-millions - This article discusses the financial impact of rental application fraud on landlords, citing a survey where 93.3% of owners and managers experienced fraud in the past year, with an average write-off of $4.2 million. The most common types of fraud include falsified income documentation, misrepresentation on applications, and identity theft. The piece highlights that nearly 24% of eviction filings over the past three years were due to fraudulent applications and subsequent rent non-payment, emphasizing the significant financial burden on landlords.
https://www.globest.com/amp/2024/01/29/rental-application-fraud-costs-landlords-millions/ - This article highlights the financial repercussions of rental application fraud, noting that 93.3% of owners and managers experienced fraud in the past year, with an average write-off of $4.2 million. The most prevalent forms of fraud include falsified income documentation, misrepresentation on applications, and identity theft. The piece also points out that nearly 24% of eviction filings over the past three years were linked to fraudulent applications and subsequent rent non-payment, underscoring the substantial financial impact on landlords.

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 8

Notes: The narrative presents a recent incident involving Jared Decker in Tampa, Florida, with no prior reports found. However, similar cases of rental fraud have been reported, indicating a recurring issue in the rental market. ([housingtoolkit.nmhc.org](https://housingtoolkit.nmhc.org/?utm_source=openai))

Quotes check

Score: 9

Notes: The direct quotes from industry experts like Jay Parsons and the Greystar executive appear to be original, with no exact matches found in earlier material. This suggests the content may be exclusive.

Source reliability

Score: 7

Notes: The narrative originates from AOL, a reputable news outlet. However, the inclusion of specific data points from the National Multifamily Housing Council (NMHC) and RealPage, which are not directly accessible, raises questions about the verification of these figures.

Plausability check

Score: 8

Notes: The claims about the prevalence of rental fraud and its impact on landlords and tenants are plausible and align with known industry challenges. However, the lack of direct access to the cited NMHC and RealPage studies makes full verification difficult.

Overall assessment

Verdict (FAIL, OPEN, PASS): OPEN

Confidence (LOW, MEDIUM, HIGH): MEDIUM

Summary: The narrative presents a plausible and timely account of rental fraud in Tampa, Florida, with original quotes and a focus on a specific incident. However, the reliance on unverifiable data from NMHC and RealPage, combined with the absence of direct access to these sources, introduces uncertainties that prevent a definitive assessment.

Rental Fraud
Real Estate Investment
Housing Market