Enterprise Solutions
Informed.IQ Industry Survey Shows Where Multifamily Professionals Still Have Significant Challenges With Applicant Verifications
By Business Wire
Share
Large number of property managers still conduct applicant verifications manually; Growing number are interested in exploring AI-driven verification technologies
SAN FRANCISCO--(BUSINESS WIRE)--Informed.IQ, a developer of AI-based software for income and employment verifications, announced today it recently commissioned an industry-wide survey of property managers and landlords to take the pulse on the state of applicant fraud, the ongoing frustrations of tenant verifications, and the use of AI in the applicant verification process. Click here to see the complete data report.
The residential rental market is a critical component of the broader real estate industry. With an increasing number of people opting for rental properties over home ownership due to various economic and lifestyle factors, the demand for rental housing continues to grow. However, this growth has brought with it a significant challenge: the rise of fraud in tenant applications.
Informed.IQ’s online survey was presented to more than 3,000 property management professionals last month. In terms of how managers are conducting their applicant tenant verifications, nearly half (46%) said they still conduct verifications manually, 28% with tenant screening software, and 26% by outsourcing screening services to third-party services.
Continued challenges in applicant verifications
Furthermore, managers have many challenges they still deal with for verifications. The majority (27%) say the process of verifications is extremely time consuming. Eighteen percent say they experience a lack of reliable data during the verifications process; another 17% say inconsistent results; and 12% say legal compliance issues. For managers dealing with fraudulent tenant applications, nearly one in four managers say they deal with fraud in a quarter of all applications.
Manual screening still prevalent
Manual screening is a labor-intensive process that requires significant time and effort from property managers. Fifty-one percent of managers say they still manually verify applicants and their documentation. Of these people, 31% continue with their manual process because they feel there’s a lack of suitable technology available. Also 29% still have faith and trust in their legacy manual process.
Professionals’ growing interest in AI technologies
The use of artificial intelligence (AI) has brought new opportunities and the possibilities of even more power for managers during the application process. However, 60% of managers say they are admittedly unsure about the familiarity of how AI may help them in their efforts to thwart fraud. Furthermore, more than half of respondents (53%) say while they aren’t currently leveraging AI, they would be interested in learning more about it, and nearly a quarter (23%) say they are currently considering its use.
Of those considering, 22% feel it can help with improved accuracy in spotting fraud, and 60% say they believe it offers faster processing capabilities, enhanced compliance with regulations, and better risk management. There are concerns, however. Twenty-two percent worry about the integration with existing systems, and 21% wonder if AI will have issues with bias and fairness in the data algorithms.
“Despite advancements in technology, property management professionals still face significant challenges with applicant fraud and verifying applicant information,” said Mac Rechan, Head of Partnerships. “It’s alarming that a substantial number of managers continue to rely on manual application verifications, a process that is not only time-consuming but also prone to errors and fraud. The promise that AI driven verification technology holds is significant. By automating and enhancing the verification process, AI can detect fraudulent activities more efficiently, ensuring that only qualified applicants are approved. This not only protects property owners and managers but also contributes to a safer, more reliable rental market. Embracing AI verification technology is no longer an option but a necessity for the multifamily industry to combat fraud and streamline operations.”
Click here to see the complete data report.
About Informed.IQ
Informed uses AI/ML to instantly verify income, assets, residence, insurance, auto stipulations, credit stipulations and more, enabling real-time, reliable credit decisions without bias. Informed’s models are trained to process hundreds of document types and consumer-permissioned data sources, automating stipulation clearance for lenders. In 2023, Informed processed over 6 million consumer credit applications. The solution automates verifications with 99% accuracy in seconds with no humans-in-the-loop.
Informed’s Knowledge Graph and Data Consortium comprising more than 66 million records and 1.5 billion lending data points powers a Configurable, Verticalized AI Platform enabling scaling of portfolios of documents and data.
To learn more, visit informediq.com or follow Informed on LinkedIn.
Contacts
Adine Deford
adine.deford@informediq.com
First published on Wed, Aug 21, 2024
Liked what you read? That’s only the tip of the tech iceberg!
Explore our vast collection of tech articles including introductory guides, product reviews, trends and more, stay up to date with the latest news, relish thought-provoking interviews and the hottest AI blogs, and tickle your funny bone with hilarious tech memes!
Plus, get access to branded insights from industry-leading global brands through informative white papers, engaging case studies, in-depth reports, enlightening videos and exciting events and webinars.
Dive into TechDogs' treasure trove today and Know Your World of technology like never before!
Disclaimer - Reference to any specific product, software or entity does not constitute an endorsement or recommendation by TechDogs nor should any data or content published be relied upon. The views expressed by TechDogs' members and guests are their own and their appearance on our site does not imply an endorsement of them or any entity they represent. Views and opinions expressed by TechDogs' Authors are those of the Authors and do not necessarily reflect the view of TechDogs or any of its officials. All information / content found on TechDogs' site may not necessarily be reviewed by individuals with the expertise to validate its completeness, accuracy and reliability.
Tags:
Related News on Enterprise Solutions
Mullen Group Ltd. Announces Election Of Directors
Fri, May 5, 2023
By PR Newswire
Robin Simplifies Hybrid Work Policy Compliance
Wed, Mar 1, 2023
By Business Wire
Oceaneering Reports First Quarter 2023 Results
Thu, Apr 27, 2023
By Business Wire
Kinaxis Inc. Reports First Quarter 2023 Results
Thu, May 4, 2023
By Business Wire
Getaround Closes Acquisition Of HyreCar Assets
Wed, May 17, 2023
By Business Wire
Link Logistics Named 2024 CIO 100 Award Winner
Wed, Mar 20, 2024
By Business Wire
Join The Discussion