Reducing the risk of a fraudulent tenant
For landlords and property management firms in the UK, fraudulent tenants are a rising source of concern. While the majority of tenants are reliable and honest, a small percentage engage in dishonest practises that can cost money and create legal issues.
Subletting is a typical form of tenant fraud experienced in the UK. When a tenant rents a property and then rents it out to someone else without permission from the landlord. Subletting can be advantageous for the original tenant, who receives rent from the subtenant, but it can also be detrimental to the landlord, who may not be aware of who is residing in the property and who is in charge of maintaining it and who is accountable for damages or unpaid rent.
Identity theft is another form of fraud involving tenants. This happens when a person utilises a stolen identity or counterfeit documentation to rent a property while pretending to be someone else. The dishonest tenant can vanish without paying rent or cause damage to the property, leaving the landlord with a loss of money and little chance to take legal action.
Providing false references or fabricating facts on rental applications related to income or job are also examples of tenant fraud. As a result, landlords might rent to people who can’t afford the rent or have a history of bad behaviour. By completing rigorous background checks, including credit and reference checks, before renting out a property, landlords and property management firms can take precautions to stop tenant fraud.
Landlords must act swiftly and get legal advice if they believe their tenants are engaging in fraud. Eviction, contacting the police or the appropriate authorities about the fraudulent activity, or taking legal action to recoup any financial losses are a few examples of this.
In conclusion, landlords and letting agents in the UK have severe concerns about fraudulent tenants. Even while it may be difficult to prevent all types of tenant fraud, thorough background checks and tenant identity verification will assist in reducing the risk. To safeguard their assets and financial interests, landlords must also be watchful and act right away if they detect fraudulent activity.
Using a tenant referencing provider such as Tenant Screening will help to reduce this risk. We will obtain credit history directly from Equifax, employment references directly from employers (and/or check documents are authentic) and obtain landlord references directly from landlords or managing agents.
With our Full Tenant Profile Checks costing just £22.95 (ex-vat) we prove to be a cost effective solution in protecting your rental investment.
