Rental Application Fraud on the Rise in Atlanta

Atlanta seems to be experiencing a wave of rental application fraud that could be affecting landlords nationwide.

Currently, the rent for a two-bedroom apartment is around $2,000 a month—quite steep for many residents, as noted by the Wall Street Journal. With the housing market heating up, there’s a reported increase in renters using fabricated financial documents, fake IDs, and altered credit histories to secure expensive apartments that they can’t truly afford.

According to the WSJ, some TikTok influencers have been advising renters to forge rent statements, employment letters, and even social security numbers to improve their chances of landing luxury apartments. There are also companies that offer “rental application packages” costing hundreds or even thousands of dollars.

One consultant claimed he managed to secure a penthouse using a $1,250 package that provided a “credit profile number (CPN),” associated with a perfect credit score. However, it’s worth mentioning that using these CPNs as substitutes for Social Security numbers on rental applications is illegal and considered fraudulent.

Greystar, a major real estate company, has reported an alarming rate of false information in about half of all new rental applications in its Atlanta properties. Other landlords are encountering similar issues, with a survey indicating that nearly 75% have noticed a significant rise (about 40%) in falsified rental records and payments over the past year.

Interestingly, these scams aren’t limited to Atlanta; similar situations are unfolding in other rapidly growing markets such as Miami, Houston, and Washington, D.C. Landlords often suffer financially when scammers make initial rent payments but then fail to keep up with further payments after moving in.

“Anyone claiming they want to move in today or tomorrow is likely a scammer,” warned Cori Sewell, an apartment manager in Atlanta’s Buckhead area.

Recent months have seen a spike in rental prices in Atlanta, reflecting the challenges in the local housing market. While some sources report the average rent for a two-bedroom unit at approximately $1,933, others suggest it could be as high as $2,235.

Experts have noted that rent prices have surged since the pandemic ended and show no signs of stabilization. According to the Federal Reserve Bank of St. Louis, in January 2024, the rent rose by 6.1% from the previous year, exceeding the overall inflation rate of 3.1%.

Economists attribute these rising prices to a shortage of affordable housing and the persistence of long-term rental contracts, which tend to keep prices elevated.

“Rent continues to increase at a rate faster than overall inflation,” said Joel Griffith, a fellow at the Heritage Foundation’s Thomas A. Roe Economic Policy Institute.