Two Dots

The Hidden Drivers of Multifamily Bad Debt

Why bad debt is still elevated — and why operators are still diagnosing it incorrectly

  • Why bad debt is still 50-75% above pre-pandemic norms
  • The override problem: 30-40% of nonpayment enters through human workarounds
  • How synthetic identity fraud grew 4x since 2022
  • 93.3% of owners experienced fraud in the prior 12 months
  • Why a harder fraud filter won't fix the real problem
  • The operator question that actually matters for portfolio health
30-40%
of nonpayment from overrides
>4%
applicants using synthetic IDs
93.3%
experienced fraud (NMHC)

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