Fighting Multifamily Fraud: What Lubbock Property Managers Need to Know

Fraud in rental applications isn’t just a big-city problem anymore. From Lubbock to Levelland, property managers across West Texas are seeing more sophisticated schemes that can lead to serious financial loss. Whether you're running a 20-unit community or managing several hundred doors, staying ahead of rental fraud is now part of doing business.

Fake Pay Stubs, Real Consequences

According to a recent National Multifamily Housing Council (NMHC) survey, 93% of multifamily professionals have encountered rental fraud in some form. The most common? Falsified income or employment details—usually in the form of fake pay stubs, doctored bank statements, or bogus job verifications.

Why does it matter so much? Because fraudulent applications often lead to “bad leases”—leases where residents default quickly or skip out entirely. One bad lease can cost a property over $10,000 in lost rent, legal fees, and damages. Even more concerning: industry data shows 24% of eviction filings trace back to fraudulent applications.

For communities already dealing with tight margins, especially in slower leasing seasons like winter in Lubbock, that’s a hit few can afford.

How Fraudsters Operate (and Why They're Hard to Catch)

Fraudsters today aren’t just using Photoshop. Many now rely on AI-driven tools that generate convincing financial documents in seconds. Some even build synthetic identities using stolen or fabricated information. These aren’t sloppy, one-off forgeries—they’re calculated, professional efforts.

As one industry expert put it, “Artificial Intelligence plays two roles in the fraud game—it’s used to commit fraud and to stop it.” That’s the challenge and the opportunity.

Smart Defenses: Tech + Teamwork

So what can multifamily teams in Lubbock do?

Start with a layered approach. Combining AI-powered screening platforms with old-school vigilance is the best strategy. Tools that verify pay stub metadata, cross-check employment data, and flag inconsistencies are powerful. But they work best when paired with trained staff who know what to look for—like mismatched formatting, off-brand email domains, or vague job titles.

Tips for stronger screening:

• Require verifiable documentation from third-party payroll services.

• Use income verification tools that access direct deposit data.

• Cross-check employer websites and contact information manually.

• Train your team regularly on the latest fraud red flags.

At the end of the day, tech alone isn’t enough. Your local knowledge, your team’s instincts, and your connection to the LAA network are all part of your defense.

The Bottom Line

Fraudulent applications aren’t going away, but neither is the resilience of West Texas property managers. By investing in better tools and sharing knowledge across our LAA community, we can reduce risk and keep our communities strong.