Founded in 1993, Sares Regis Group offers vertically integrated asset management. They draw on over 30 years of real estate experience to build, market, manage, and maintain communities that remain attractive to customers while ensuring top performance for owners.
SRG management were seeing abnormally high rates of bad debt at three properties in the Los Angeles market as a result of early lease termination for non-payment. An investigation discovered the source of the bad debt could be traced back to fraudulent activity gone unnoticed during the applicant screening process. Estimates suggested that each prematurely terminated lease was costing stakeholders an estimated $9,756 per incident.
SRG sought a way to reduce their exposure to rental fraud by requiring applicants to prove their identity before ever signing a lease.
After reviewing the market for ID verification software that could scale with their business, SRG chose to pilot CheckpointID, a provider with extensive industry experience, which offers instant identity verification in compliance with the Fair Housing Act.
After a 6-month trial program run across 16 properties, CheckpointID exceeded SRG’s goals and delivered value beyond their initial expectations.
Key Benefit 1 – Fraud prevention at targeted properties
From the start of the pilot, CheckpointID delivered almost instantaneous results by stopping 3 fraudulent actors at one of the properties of concern within the first week of program. From then on, the solution continued to catch almost two dozen more fraudulent actors across the SRG portfolio.
Key Benefit 3 – Investor returns
Based on internal numbers, each case of fraud cost SRG stakeholders almost $10,000 in lost rent, legal fees, turn costs, marketing spend, and other factors associated with bad debt. In total, CheckpointID saved owners and investors and estimated $224,388 in lost revenue, which equates to an ROI just shy of $210,000.
Key Benefit 2 – Connecting with customers
CheckpointID delivered additional benefit to SRG’s ongoing efforts to connect with customers and renters more effectively by capturing key datapoints that were previously inaccessible. SRG was able to produce an accurate customer profile for non-buyers, giving them the ability to analyze what differentiates a buyer and non-buyer and modify sales and training as a result.
CheckpointID is so simple to use yet so effective. It deters fraudulent renters immediately and saves us not only the expense of bad debt but in staff hours that would have been spent with someone who isn’t qualified to rent.
– Kelly Vickers, RVP, Sares Regis Group