Detection versus avoidance: Payscore’s automated income verification eliminates the primary source of application fraud

Even the best property management firms are finding themselves between a rock and a hard place. The rock is the explosion of organized rings of fraudsters and the wide availability of “how-to” information on social media exploiting gaps in fraud protection. And the hard place is rent growth declining 1% year-over-year. These twin events place tremendous pressure on property managers to meet their NOI goals. In fact, according to the most recent report by RealPage, 73% of property management companies believe rental fraud prevention could improve overall financial results by 10-20%. Enter Payscore. Automating income verification with their solution stands out as the most reliable method for moving you out of a hard place and into a happy place, one where fraud can’t persist, and communities can achieve 0% delinquency.

The Complexity of Fighting Fraud

The multifamily industry is up against a multifaceted problem in application fraud: fake identities and falsified income documents make it impossible to confidently conduct leasing activities. Deceptive practices deployed by individuals and crime rings alike yield unauthorized and unqualified residents that result in financial losses, and measurable operational inefficiencies. Property management teams grapple with the following challenges:

• Identity Verification: Verifying the authenticity of applicants' identities is time-consuming and prone to errors. Traditional methods rely on manual checks, which are susceptible to manipulation.
• Income Verification: Ensuring that applicants meet income requirements is critical for applicant selection. However, relying solely on pay stubs or self-reported income is not only far from failsafe, but it also opens the door for human bias to creep in, and actually creates new opportunities for deception.
• Compliance and Fair Housing: Striking the right balance between thorough verification and fair housing practices is essential. You need a solution that promotes compliance while streamlining the process, and reduces the opportunity for human bias.

Payscore: The Solution

Instant, Bank-Verified Income Reports

Payscore is automating income verification to provide you with instant access to 100% bank-verified income data. With connections to over 22,000 financial institutions across North America, Payscore ensures accuracy and immediacy. Applicants no longer need to dig for pay stubs or upload documents, meaning the process is easier for them and more reliable for you.

Accuracy Eases Decision-Making

Increased Accuracy: Eliminating manual data entry delivers accurate income assessment, and by relying on independently verified information, you reduce the risk of approving prospects with falsified income. Payscore delivers the truth about applicant income.

Simplicity Drives Efficiency

Streamlined Application Process: Payscore’s customers will tell you they complete their work now in half the time, and that the exercise of verifying income is now as simple as ‘Click-to-verify’. Imagine the impact on your NOI when you can expedite approvals and move-in processes.

Security and Privacy, Upfront and at All Times

• Having network connections with 99% of all banking institutions in North America demands that Payscore prioritizes security. Consumer-permissioned applicant data is protected through robust encryption, ensuring that personal and financial information remains confidential.
• Limited-Use Information: Before submitting their reports, applicants are asked for permission to proceed, informed about the limited use of shared data, and offered the opportunity to review and comment on their own data before the analysis is delivered. This transparency builds trust and aligns with fair housing principles.

Success Stories

• Super-charging efficiency: one site increased occupancy from 42% to full capacity by leveraging Payscore's streamlined income verification process.
• Driving to 0% delinquency: another site achieved 0% delinquency inside of 18-months once they onboarded Payscore.
• Reducing eviction count: a third site dropped from 22 evictions underway down to just 2 since deploying Payscore.

Conclusion

In the pursuit of better economics, fewer distractions and reducing opportunities for human bias, Payscore stands out as the beacon of reliability. Its bank-verified income reports, streamlined processes, and commitment to security and transparency empower property management teams across the U.S. to effectively avoid fraud. As rent growth remains stagnant, have Payscore as your ally to maintain financial health and resident trust. It’s as easy as Click-to-verify with Payscore.

Click here to arrange to learn more about how you can achieve your NOI objectives despite wide-spread fraud.

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