Social Media and Rental Application Fraud

Did you know that nearly 25% of eviction filings stemmed from fraudulent applications according to the NMHC Pulse Survey on Operational Impact of Rental Application Fraud and Bad Debt, conducted by the National Multifamily Housing Council (NMHC) and the National Apartment Association (NAA)?

Social Media and Rental Application Fraud

Across the country, instances of rental application fraud—including financial misrepresentation and identity theft—are on the rise. A key driver of this trend is the increasing use of social media platforms, where individuals openly share methods for falsifying documents and deceiving property managers.

How Social Media Fuels Application Fraud

Platforms like TikTok and X (formerly Twitter) have become hotspots for tutorials that teach users how to create fake pay stubs, doctor PDFs, and manipulate employment and income documents. These widely circulated "hacks" significantly lower the barrier to entry for committing fraud, placing increased strain on leasing professionals and property owners.

According to research by Buildium and Bisnow, this rise in easily accessible fraud tactics has directly contributed to a sharp increase in fraudulent rental applications. A joint survey by the National Multifamily Housing Council (NMHC) and the National Apartment Association (NAA) revealed that more than 70% of large apartment operators reported experiencing an uptick in fraudulent applications in the past year.

Fraudulent behavior takes many forms, including:

1. Falsified Documents
   Applicants use digital tools to alter or create fake pay stubs, bank statements, or employment letters in an effort to exaggerate financial stability
2. Identity Theft
   Some individuals assume another person's identity—using stolen credit information or IDs—to secure a lease they wouldn’t otherwise qualify for.
3. Omission of Critical Information
   Applicants may intentionally omit evictions, criminal history, or other red flags from their applications to appear more favorable.
4. Fake Co-Signers
   Fraudsters often list co-signers who are either unaware of their role or entirely fictitious, thereby falsely strengthening the application.
5. Unauthorized Cohabitants & Subletting
   After securing a lease, some renters violate agreements by illegally subletting units or housing unauthorized occupants.
6. Fraudulent Payment Methods
   Submitting fake checks or manipulated payment details is another tactic used to gain access to properties without financial commitment.

The Financial Toll of Fraud

Rental application fraud is not just a legal concern—it’s a costly operational burden. In a 2024 survey of 75 NMHC and NAA member organizations (including owners, developers, and managers), 93.3% reported encountering fraud within the previous 12 months.

One of the most alarming findings was the financial impact:

• Respondents reported writing off an average of $4.2 million in bad debt, with a median loss of $800,000.
• Approximately 24.5% of this debt stemmed from nonpayment of rent due to fraudulent applications.

In many cases, these financial losses are indirectly passed on to renters through higher rents and fees—making fraud a problem for the entire rental ecosystem.

CLICK HERE TO VIEW THE SURVEY RESULTS

A Legislative Response: What Lawmakers Can Do

Addressing this growing threat requires a coordinated response from local, state, and federal elected officials. One thing that can be done is to strengthen law enforcement resources to ensure effective enforcement. Local and state governments should:

• Allocate funding for training in digital fraud detection.
• Create dedicated rental fraud investigation units.
• Streamline victim reporting processes to encourage timely intervention.

Conclusion

Rental application fraud—especially when amplified by social media—is no longer a niche issue. It represents a significant financial and operational threat to the housing industry. With strategic action by elected officials, property managers, and technology partners, we can build stronger safeguards to protect communities, uphold integrity in the leasing process, and reduce the rising cost of housing caused by fraud.