Across the United States, property owners and managers are reporting a significant increase in fraudulent rental applications — a trend that has direct implications for eviction counsel and law firms representing landlords. In particular, the Atlanta metropolitan area has emerged as one of the most affected markets, with reported rates of fraud substantially higher than the national average.
National Overview
Recent data from the National Multifamily Housing Council (NMHC) and the National Apartment Association (NAA) indicate that 93 percent of rental housing providers experienced some form of fraud in the past year, while over 70 percent reported that fraudulent applications or payments have increased over the same period.
(NMHC/NAA Rental Fraud Survey, 2024)
Fraudulent applications typically involve falsified or manipulated documentation, such as edited pay stubs, fabricated employment records, or altered bank statements. In some cases, the misuse of another individual’s personal information or synthetic identities is also reported. The trend coincides with the industry’s increasing reliance on digital leasing systems, which have expanded opportunities for document submission — and manipulation — without in-person verification.
Atlanta: A Regional Hotspot
The Atlanta metropolitan area has been identified as one of the country’s top markets for fraudulent rental activity. Data compiled by the fraud-detection firm Snappt found that 12.2 percent of all applications submitted in Atlanta in 2024 were flagged as fraudulent — the third highest rate in the nation, following Memphis and Mobile.
(Snappt 2024 Annual Fraud Report)
Local industry reports suggest that fraudulent activity in the region has accelerated as the rental market has tightened and as property owners continue to recover from pandemic-era disruptions. Some Atlanta property managers report seeing clusters of applicants using identical or near-identical employment verification letters or pay stubs sourced from online document-generation platforms.
Common Forms of Application Fraud
While patterns vary by market, several consistent forms of rental application fraud are appearing nationwide:
- Document forgery or alteration – Applicants manipulate pay stubs, W-2 forms, or bank statements to exaggerate income or conceal instability.
- Identity theft or synthetic identity use – Applicants submit legitimate identifiers (names, Social Security numbers) belonging to others or combine fabricated data to create new profiles.
- Misrepresentation of employment – Applicants list fictitious employers or unverifiable job titles.
- Unauthorized subleasing or “ghost tenants” – A screened applicant secures a unit and subsequently allows others to occupy it.
Industry surveys estimate that more than 80 percent of fraudulent submissions involve falsified income or employment information, while roughly 70 percent involve identity misuse.
(American Apartment Owners Association, 2024)
Broader Implications for the Rental and Legal Sectors
The rise in fraudulent rental applications has a measurable downstream effect on the volume and complexity of eviction filings nationwide. According to NMHC, nearly one in four eviction filings over the past three years involved a tenant who had submitted a fraudulent application.
In metropolitan areas like Atlanta, where reported fraud rates are among the highest in the country, eviction counsel are seeing a corresponding increase in filings tied to misrepresentation at the application stage. Local property associations have noted that the issue disproportionately affects higher-end multifamily properties and new developments, where rents and concessions are substantial enough to attract opportunistic applicants.
Industry Response
The multifamily sector is responding with greater scrutiny and technological verification. Many large operators have incorporated third-party document analysis tools into their leasing platforms to detect inconsistencies in income and identity verification. Industry associations, including NMHC and NAA, continue to track the financial impact of fraudulent tenancies, estimating losses in the hundreds of millions of dollars annually across the sector.
Within Atlanta, a number of property management firms and ownership groups have publicly reported new investments in fraud-prevention technology and tighter screening protocols. These efforts reflect the market’s broader recognition that digital leasing — while efficient — has created new vulnerabilities requiring systematic oversight.
Outlook
The data suggests that fraudulent rental applications are likely to remain a persistent issue for the foreseeable future, particularly in competitive rental markets like Atlanta. As economic conditions fluctuate and technology continues to evolve, document forgery and identity manipulation are expected to become more sophisticated.
For legal practitioners specializing in landlord-tenant law, the trend represents an emerging structural factor influencing the volume and nature of eviction filings nationwide. Understanding the scope and characteristics of rental application fraud — and the markets most affected by it — provides critical context for evaluating future caseload trends and client exposure across the multifamily housing industry.
