AI Tenant Vetting: How Preferental stops fraud before it starts

• AI screening catches fraudulent documents, saving time and protecting landlords.
• Real-time checks with Home Affairs, SARS, TPN, and Experian.
• Deposit+ boosts affordability while securing landlords’ full deposit upfront

Smarter Tenant Vetting for a Safer Rental Industry

‍Fraud in tenant applications is rising sharply — with industry data showing that up to 40% of applications contain falsified information. For estate agents and landlords, this isn’t just an administrative headache. It’s a reputational risk, a financial threat, and a potential legal minefield.

Ross Fitzcharles, Founder and CEO of Preferental, has made it his mission to change how the industry vets tenants:

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“We’ve built an AI-powered screening platform that does the heavy lifting — reducing the risk of fraud, speeding up decisions, and giving agents and landlords complete confidence in who they place.”

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Step-by-Step: How Preferental’s Vetting Process Works

1. Digital Application Link Sent
   • Agent sends tenant a secure link via email/SMS.
   • Tenant completes profile, uploads documents, and gives consent.
2. Real-Time Integrations
   
   • ID Verification – Checked instantly with Home Affairs.
   • Employment & Salary Verification – Cross-checked with SARS.
   • Credit Reports – Pulled from TPN and Experian, highlighting judgments, arrears, and payment history.
3. Bank Statement Analysis
   • AI scans for alterations, mismatched figures, or suspicious editing tools (e.g., PDF editors).
   • Flags potential tampering for review.
4. Affordability Check
   • Calculates net income vs. rental cost.
   • Compares declared payslip income with actual bank deposits to the cent.
5. Risk Scoring
   • AI produces an easy-to-read low/medium/high risk rating.
   • Agents can approve or reject within minutes.
6. FICA Compliance
   • All supporting documents are stored and downloadable for regulatory requirements.

Best Practice for Agents and Landlords

• Always run full AI-based vetting - even for tenants who “look good on paper.”
• Collect application fees from tenants to ensure commitment.
• Review flagged items carefully - investigate any document tampering before approving.
• Leverage risk scoring to prioritise low-risk applicants and cut down wasted viewing time.
• Integrate Deposit+ for greater flexibility, tenants can pay deposits over 10 months, while landlords get the full amount upfront.

Why this changes the Game

‍Preferental’s system not only detects sophisticated fraud attempts but also standardises the vetting process so it’s no longer dependent on one experienced staff member.

If your usual admin person is on leave, the platform ensures the same checks are applied every time.

The Deposit+ feature also bridges affordability gaps. Tenants can spread the deposit cost while landlords enjoy full deposit protection from day one plus cover for death, disability, or retrenchment during the lease term.

AI Best Practice

‍AI is no longer a “nice-to-have” in tenant vetting, it’s a necessity. By adopting platforms like Preferental’s, agents and landlords can:

• Protect portfolios from high-risk tenants.
• Speed up leasing cycles with instant, verified decisions.
• Strengthen client trust through transparent, data-driven processes.

Fraudsters are using technology to get into properties. It’s time the industry uses better technology to keep them out.

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