Proptech Company 100, Airport Security Firm Clear Partner Up For Anti-Rental Fraud Platform
Rental software company 100 and identity verification company Clear Secure have teamed up to launch rental screening software aimed at battling rental fraud.
Dubbed the Verified Renter Network, the platform aims to streamline the rental process. With Clear's security identity technology, the software includes advanced features to make the screening process speedy and fraud-resistant.
100 just closed a $5.2M preseed funding round with investment from MetaProp, Freestyle Capital and RiverPark Ventures.
The Verified Renter Network is intended to give “much-needed relief for multifamily operators burdened with record levels of fraud and debt,” Caren Maio, co-founder and CEO of 100, said in a press release.
Renters must submit to a background check and meet specific criteria set by an association of real estate owners and operators to become a verified renter under the program. Once approved, they will be able to hasten the application and screening process, and property owners can save time and cut down on the costs associated with rental fraud.
Rental fraud has skyrocketed since the onset of the pandemic. More than 70% of apartment landlords have seen an increase in rental application fraud in the past year, the National Multifamily Housing Council and National Apartment Association found in January.
Ninety-three percent of owners and managers saw some type of fraud in 2023, NMHC found in the same survey.
Bisnow reported in December how renters are using TikTok videos and other social media sites like X and Reddit to learn how to doctor rental applications and use fake IDs. Since the rental process has largely switched to an online format, it has become easier to submit falsified documents to secure a lease.
“With the advancements of online document-editing technology, it means that really, anybody can do it,” Daniel Berlind, CEO of multifamily application verification service Snappt, told Bisnow last year.
The eviction process is a lengthy one, and court systems are clogged with proceedings of this type due to the eviction moratoriums many states put in place because of the pandemic. These cases can go on for months, and some fraudsters are able to pack up and move in the middle of the night before going to court.
