Top 3 Ways PMCs Are Tackling the Fraud Crisis

The multifamily industry faces an evolving challenge as the cost of living soars—fraud.  A staggering 84.3% of respondents in a recent National Multifamily Housing Council (NMHC) survey reported a spike in fraudulent activities, highlighting the pressing need for robust anti-fraud measures to safeguard multifamily owners and operators. The increase in fraudulent activity is a significant problem, and it’s likely being driven by the financial pressures many people are facing. Desperate to find housing, some individuals are turning to fraud to meet the income requirements of their applications and pay rent each month.

Let’s delve into the top three ways a rent payment platform such as Domuso can effectively address the fraud crisis through streamlined operations, meticulous tracking, and resilience against fraudulent activities:

Focus on operational efficiency: keeping rent low to combat cost of living issues

As the cost of living continues to escalate, maintaining affordable rent is a strategic tool in the fight against fraud. Residents who are financially secure and can comfortably afford their housing are less likely to engage in fraudulent activities. Therefore, it is imperative that multifamily owners and operators prioritize operational efficiency and implement strategies to offer more affordable rent prices. 

By optimizing payment processes and going truly digital, a rent payment platform like Domuso supports operational efficiency by simplifying the rent collection process. This strategic streamlining of operations saves time and resources, thereby reducing overhead costs so PMCs can keep rents lower. These savings allow for a lower break-even rent, which in turn can help maintain higher occupancy rates and a reduction in temptation for residents to falsify income statements when applying or partake in fraudulent activities.

Early risk identification: increasing visibility with a centralized dashboard

Early detection of potential fraud is crucial to minimizing its impact. Domuso’s Payment Insights dashboard offers PMCs a powerful tool for tracking and analyzing payment types and trends. Because paper payments are more susceptible to fraud, more visibility into which properties are accepting higher rates of checks and money orders, property owners, operators and managers can make strategic decisions about where to focus their digital efforts.

This proactive approach not only helps in identifying and addressing fraud but also in understanding the financial health of the resident base, allowing for better-informed decisions and strategies tailored to the needs of both the property and its residents. Without proper precautions, PMCs may be held responsible for unpaid rent and damages, which can have a significant impact on their bottom line. By leveraging technology, property managers can gain invaluable insights into residents’ payment behavior, detect suspicious patterns, and take prompt action to safeguard their communities and assets.

Chargeback protection: insulating your business from fraud

To directly combat fraud, utilizing a robust payment solution is key. Domuso offers 100% chargeback protection on certified payments, which shields PMCs from financial losses associated with chargebacks due to fraudulent transactions. This protection ensures that, even in the face of a chargeback, the property manager will not be held financially responsible for the fraudulent claim. In the event of a resident disputing a charge and initiating a chargeback, alleging unauthorized or erroneous charges on their rental payments, Domuso assumes the responsibility of investigating and resolving the issue, thereby relieving the financial strain from the property owner. This peace of mind allows multifamily owners and operators to direct their focus and resources to their core mission of delivering quality housing and superior resident services.

Moreover, payment providers with robust chargeback protection services often collaborate with fraud detection systems, implementing cutting-edge technology to further fortify their fraud prevention capabilities. These systems employ sophisticated algorithms and data analysis to identify suspicious payment patterns, flagging potentially fraudulent transactions for immediate review. By leveraging these advanced tools, property management firms can proactively identify and combat fraudulent attempts before they result in financial losses, fostering a secure environment for both residents and property owners alike.

In the face of rising fraud rates, PMCs must adopt innovative and effective strategies to protect their operations and their residents. By focusing on operational efficiency, enhancing tracking capabilities, and using a payment provider like Domuso that offers 100% chargeback protection, property owners, operators and managers can tackle the fraud crisis head-on. These measures not only mitigate the risks associated with fraud but also strengthen the overall operational health of multifamily properties, ensuring a safer and more sustainable future for all stakeholders.

Domuso is driving digital transformation for the multifamily industry with an advanced platform to manage payments and communication throughout the entire resident lifecycle. Domuso captures 100% of a property’s receivables electronically while giving residents the flexibility to access multiple payment methods from any mobile device.

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