New Research

Fraud & Bad Debt in Multifamily

Why anti-fraud tools haven't solved the problem — and what actually will. Backed by Two Dots backtest data from NMHC top 50 partners.

What You'll Learn

✓80% of applicants who commit fraud still pay the rent — most are driven into fraud by the affordability crisis, not criminal intent
✓Most "anti-fraud" products let through enormous amounts of fraud — and poor performance is hidden by naturally declining bad debt in a good economy
✓Override culture was created by automating credit score and income-to-rent cutoffs that work for a smaller share of renters every year
✓NMHC top 50 partner backtest data reveals leasing criteria non-compliance — not missed fraud — is actually the #1 cause of bad debt
✓Your portfolio has a ticking time bomb — fraudsters pay now, but when macro conditions shift, the hidden risk surfaces

Key Findings

30-40%

of nonpayment from leasing non-compliance

260%+

growth in CPN fraud since 2022

>10%

of offer letters are fraudulent

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The Speed Imperative

The hidden NOI lever most operators are leaving on the table. Every day of screening delay costs a 1,000-unit portfolio $22K–$56K in lost applicants.

Download the Speed Report →

2025 Multifamily Intelligence Report

Data from 265,000+ rental applications reveals the Day 3 Problem — why 50% of qualified applicants are gone within 72 hours, and what it's costing you.

Download the 2025 Report →

Fraud & Bad Debt in Multifamily

The Speed Imperative

2025 Multifamily Intelligence Report

Insights

and impact

Approval Speed Is the Biggest NOI Lever Most Operators Aren't Pulling

42% of Your Applicants Have Complex Income. Your System Wasn't Built for Them.

How AI-First Screening Eliminates the Override Problem (And the Fraud That Comes With It)

The Rental Market's Ticking Time Bomb: Why Fraudulent Tenants Are Paying Rent Today (But Won't Tomorrow)

What is Obfuscation Fraud in Rental Screening and How to Avoid It

Offer Letter Fraud: How to Spot Fake Employment Offers and Protect Your Properties

Why Property Managers Should Stop Verifying Rental History

Stop Rejecting Hard to Screen Applicants - how to catch fraudsters and increase occupancy

A spotlight on Two Dots

$17.5M

“

Two Dots has been a game changer for BH. The efficiencies we are able to achieve simply wouldn't be possible without them.

$17.5M

“

Two Dots has been a game changer for BH. The efficiencies we are able to achieve simply wouldn't be possible without them.

Go from manual to automated overnight and

boost your bottom line