Screening tenant applications by hand creates real headaches. First, it’s slow, often taking two to three days to complete. On top of that, even well-trained leasing agents may interpret criteria differently. Finally, it's harder to spot fraud—whether it’s someone submitting a fake offer letter or doctored paystub. 

But what does this cost you in actual dollars? We looked at a typical 1,000-unit property charging the national average rent of around $1,700 per month. The numbers show these manual screening bottlenecks could be leaving over $1 million in annual revenue on the table. Here's where that money goes—and how automated screening helps you earn it back.

Fill units faster, make more money

Property managers face pressure to keep units filled. Looking at Q4 2024, 133,300 new apartment units came on the market while 113,200 units were absorbed, according to CoStar data. With more units available than renters in many areas, you need to be able to make quick and confident decisions about who to rent to.

"If it takes you a week to give an answer, that applicant might go somewhere else," explains Steve Carroll, CEO of Findigs, a provider of end-to-end tenant screening software. Speaking to Findig’s data: "We've seen cycle times (from application submission to final decision) drop from three to five days to under 12 hours on average, with 60% of applications receiving decisions within 24 hours," Carroll shares.

McKinley Apartments and Properties, managing 14,000 units across Michigan and Florida, found that automation let their leasing agents focus on what they do best—showing units and connecting with prospects. "Before, an agent could handle three prospects. With Findigs automating the screening process, they can manage six," says VP Josh Lin. "Our properties were just better occupied by the end."

Raising occupancy through better marketing and service could pay off, and drive dollars of impact directly to your bottom line. Let’s look at this with tangible numbers through a Findigs customer case study.

Our customer—we can call them Goose Property Management—has about 1,000 units which rent for an average of about $1,700 per month. 

• Findigs improved GPM’s occupancy by 5%; in other words, 50 additional units were occupied thanks to the speed and efficiency of Findigs software. 
• At an average rent of about $1,700, these previously vacant units began to generate an additional $85k of revenue for GPM each month. 
• On an annualized basis, this additional revenue totals to over $1 million. By processing applicants faster, screening out fraud, and unlocking the capacity of leasing teams to sell, Findigs drove hard-dollar-benefits to GPM’s bottom line, and transformed the yield profile of GPM's rental assets. 

Stop fraud before move-in

Fraud is a growing challenge in the rental industry. According to the National Multifamily Housing Council (NMHC)’s Pulse Survey, 93% of property managers experienced fraud in the past 12 months, and 71% report an increase in fraudulent applications. TransUnion's Multi-Family Fraud Insight Guide found that more than a third of fraud cases were only identified after move-in—showing just how important it is to catch fraud before signing a lease, saving you from costly evictions and lost rent.

"Evictions and skips qualifications are really challenging right now," says Lin. "It's not going to get better anytime soon. Fraud is far more rampant this year than it was last year. There are just more bad actors coming to our properties and trying to get in."

Modern fraud detection tools use advanced checking methods that catch things even experienced reviewers might overlook. When Findigs analyzed McKinley's past eviction cases, it was found that Findigs' fraud detection system would have automatically caught 44% of them through careful identity verification and document checks. The best part? You can keep your inclusive credit criteria while still reducing your chances of fraud. 

What might the financial impact of catching more fraudulent applications look like?

According to the NMHC, the median bad debt among property managers is $800,000—and the portion attributable to fraud is 24.5% or $196,000.

If you take the 44% reduction in eviction cases (potentially caused by fraud), that equates to savings of over $86,000 a year.

Do right by renters, protect your business

Everyone deserves a fair shot at housing. When you review applications consistently and fairly, you not only do right by renters—you also protect your business from costly fair housing violations. Many property managers lack clear, written steps for making application decisions. When different leasing agents review applications differently, it increases your risk.

According to HUD's guidance, the penalties for fair housing violations are as follows: 

• No prior violations: Up to $24,793
• One prior violation: Up to $61,982
• Two or more prior violations: Up to $123,965

Remember that fines are just the beginning—you could also face additional costs for damages and legal fees if discrimination occurs. But there's a simple way to protect everyone: create clear screening guidelines and follow them consistently for every applicant.

Adding up your revenue

Let's look at what this means for our example 1,000-unit property renting at $1,700 per month, using rounded numbers to keep things simple:

• Better occupancy (that 5% improvement of 50 units): around $1 million yearly (roughly $1,700 × 50 units × 12 months)
• Less fraud (thanks to catching 44% more cases): about $86,000 saved annually (based on the NMHC data we discussed)
• Protected from compliance issues (single violation): approximately $25,000 (rounded from the base HUD fine)

When we add it all up, that's roughly $1.1 million in additional revenue!

Take the next step

You've seen how automated screening can help you fill more units, reduce fraud, and make fair decisions. Ready to see these benefits in action? In a quick 30-minute demo, we'll show you how Findigs DecisionAssist helps you:

• Process applications overnight while your team sleeps
• Free your agents from application reviews 
• Apply fair and consistent screening criteria while catching more fraud
• Get decisions to applicants faster 

If you’re ready to see how automated tenant screening can boost your rental revenue, reach out today to get started.