According to Estate Agent Today, tenancy frauds in London have increased. This year it has been reported that 1 in 20 tenancy applications are fraudulent. A problem like this is an example of the financial and legal risk landlords in London face. Read on to discover some common frauds that landlords are vulnerable to and how Rickman Properties can help.
Why does it happen?
There are a variety of reasons as to why persons might want to rent properties fraudulently. Often individuals are looking to rent a high value property and illegally sublet it. Alternatively, individuals might doctor their finances in order to live in a property they can’t actually afford. Whatever the reason tenancy frauds in London happen, it’s always detrimental for the landlord – involving mighty financial and legal risks.
Why are tenancy frauds in London increasing?
One of the main problems with property fraud originates from the Tenant Fee Act 2019. The regulation stipulates rental agencies may no longer charge tenants certain rental costs. As a result, it’s easier for individuals to make fraudulent applications because they have a minimal risk to lose money if they don’t succeed.
Other factors that contribute to the increase of tenancy frauds in London are related to the economic impacts of Covid-19 , such as job losses and the possibility to make money easily by committing fraud.
Common property frauds to spot
The use of false documents is a key part of indivduals committing fraud. Some common tenancy frauds in London involve tenants using fake or stolen identities and renting a property using false documentation.
Some tenants even present fake bank statements with false income to demonstrate they can pay their rent. References can be doctored as well as fake businesses and companies. Even fake websites or Facebook pages are created!
As technology develops, frauds are easier to achieve. An agent or agency like Rickman Properties can reduce this risk for private landlords as they have all the tools and experience to spot fraudulent information.
How can Rickman Properties help you?
An estate agency knows how to check documents properly to avoid tenancy frauds in London. These are some actions we take:
● Identity confirmation: a cross-reference analysis, as well as exploring external sources to prove identities;
● Credit check: There is always a financial footprint that demonstrates if the tenant is reliable. So, we carefully evaluate information before selecting the right tenant for your property;
● Income checker: We also cross-check work references and salaries, ensuring the validilty of workplaces and the ability to pay rent.
It´s a good time to invest in London but be sure to reduce your risk of receiving a fraudulent tenant by hiring an estate agent. Protect your investment with Rickman Properties, we would be glad to help you!
