There’s a warning that there’s been a huge rise in fraudulent tenant applications since the start of the pandemic.
In terms of value of fraudulent applications, there’s been a startling 263 per cent increase in just three months according to tenant due diligence and guarantee firm Homeppl.
The firm’s detection tests suggests two per cent of all tenant applications are fraudulent on average across the country - but in some areas it’s five per cent.
While professional fraud remains a problem, it’s amateur fraud that has seen the biggest rise, in most part as a result of the pandemic.
Common techniques used by amateur fraudsters are fake IDs, including passports and driving licences, and doctored documentation such as payslips, bank statements, letters of employment, proof of address and proof of study, as well as fake email and websites to mimic employers and references.
Alexander Siedes, chief executive of Homeppl says: “One in 50 of all tenant applications we handled in Q1 2021 was fraudulent. But this was even more prevalent for particular clients as a result of the areas they work in and their client demographic.
“For one of our London-based clients, where there are high value properties and a broad tenant demographic, one in 20 of all tenant applications were fraudulent.
“Due to the location, a lot of this was professional fraud - when the tenant is attempting to take possession of a high value property and sublet it through short lets sites such as Airbnb to maximise income whilst defaulting on the rent to the landlord.”
Siedes adds: “Amateur fraud occurs when tenants aren’t earning enough to afford the property and this type of activity seems to have risen as a result of the pandemic which could be due to tenants being on furlough or losing their jobs.”
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The Trust Registry ( CCJ recording company ) contracted by the government isn't fit for purpose ! A number of court orders don't make it to the CCJJ list which doesn't help.
Tenancy application fraud can involve Estate Agents.
Back in 2007, I registered my property for Let, with a reputable Estate Agent.
After doing the reference checks, all appeared to be copacetic. The tenant was a chauffeur according to the Estate Agent.
The Tenant even paid 6 months rent upfront.
After meeting the tenant for the first after checking in/collecting keys, I learnt that the tenant was a mini cab driver and not a chauffeur as the Estate Agent had previously implied.
After 6 months, the tenant who had 2 dependants at the time, now approached me with a proposal.
She advised that she thinks she's entitled for Housing Benefit.
She still had the same job and her circumstances had not changed!
I advised the tenant, that when she took this property, she knew well in advance that she wanted to apply for Housing Benefit after a certain period.
In short, this was an Application fraud to get in through the back door
I automatically reject anyone who promises to pay rent up front. It's not something normal people do.
''Reputable estate agent'', I bet I know which one that is ! WHB??
So Rogue Landlords & Fraudulent Tenants what next.
I'm refusing to let unless I get 100% gold 5 star references now , been burned in the past
Anything dodgy ANYTHING and no let no way , not with the corona crap laws now
I agree George, no risk taking now.
No Guarantor who is a homeowner no let
What, do you mean tenants are actually lying ? Heaven forbid, I thought tenants support groups and MHCLG have been telling us there is only criminal landlords, not criminal tenants !
Why does this website post an article and then stop comments and delete all previous comments? The point of that??
This is exactly what I am talking about when it comes to what is illegal about the Renter’s reform Bill - As much as there are rules and laws for landlords, there should be rules and laws for the tenants too! Just as it says if the deposit is not protected within 30 days or any paperwork is not provided, then courts will not allow eviction, the same way, the rule and law should be, if a tenant has lied about anything in their rental application, then it will be grounds to get evicted. Also, just as the law tries to protect renters, it should protect landlords too - The expense of proving that a prospective tenant is suitable to rent a property - such as credit score, references etc, should be a law on the tenant - for their application to be considered - not the landlord’s responsibility. If the tenant is made to prove this, and the law is such that if the tenant is caught to have lied in the future, then it should be law for the tenant to pay compensation to the landlord and to be evicted - only then the system is fair!! Don’t you think??
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