JF3394: How Renters Use TikTok to Defraud Landlords ft. Jarred Schenke

Dec 20, 2023

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Welcome the the Best Ever midweek news brief, a new series where we will highlight the top headlines CRE investors should be paying attention to this week, followed by a deep dive on a larger news topic or trend alongside a CRE expert.

Today’s Headlines:

$4.5B Portfolio for Sale: Lennar has put a massive 11,000-unit multifamily portfolio up for sale. The portfolio is spread across 38 properties in 15 states and is valued at a staggering $4.5 billion. JLL has been tapped to manage the sale.

Bye Bye, Boom: Warehouse construction starts have plunged 48%, the steepest drop since 2009, all while industrial real estate sales at large fell by 45% in Q3, prompting the Wall Street Journal to declare that the Great American Warehouse Building Boom is over.

Retail’s Heating Up: Office real estate posted a third consecutive month of pricing gains while retail thrived, posting a fourth straight month of pricing gains and an average occupancy rate of nearly 86%, its highest since October 2022, according to Crexi data.

Today’s Guest: Jarred Schenke is a veteran commercial real estate journalist and currently writes for Bisnow. Recently, he researched and wrote a piece about how when it comes to multifamily, renter application fraud has gained significant momentum in 2023, largely due to three key factors:

The ease with which renters can forge documentation in the digital application process — or apply using a stolen identity altogether.
The accessibility on social media (like TikTok, Twitter, Reddit, and more) to information on how to forge such documents (or, in some cases, the ability to purchase fully fraudulent document packages directly).
Law enforcement’s inability (and, let’s be real, unwillingness) to do anything about it.

He joined our host, Paul Mueller, to discuss his piece, the biggest surprises from his research, the overall trend of renter fraud, and how social media is enabling the troubling trend.