Tenancy Fraud Reports Increase, According to Referencing Provider

Tenancy Fraud Reports Increase, According to Referencing Provider

Tenancy fraud is a growing problem in the United Kingdom, and according to a recent report from referencing provider HomeLet, tenancy fraud reports have increased significantly over the past year. Tenancy fraud occurs when someone obtains a tenancy agreement, either by misrepresenting their identity or by using false documents, and then sublets the property without the landlord’s knowledge. This can result in landlords losing out on rental income and tenants being put at risk of eviction.

HomeLet’s report found that the number of tenancy fraud reports had increased by nearly 50% in the past year, with more than 2,000 cases being reported in the first quarter of 2021 alone. This is a worrying trend, as it suggests that tenancy fraud is becoming increasingly common.

The report also highlighted some of the key factors driving the increase in tenancy fraud. These include the rise in rental prices, which has made it more attractive for people to sublet properties without the landlord’s knowledge; the increasing prevalence of online rental platforms, which make it easier for people to find tenants without going through a formal referencing process; and the lack of enforcement of existing tenancy fraud laws.

In response to this worrying trend, HomeLet is calling on landlords to take steps to protect themselves from tenancy fraud. This includes carrying out thorough tenant referencing checks, such as credit checks and employment references, as well as using a secure online platform to manage rental payments. Landlords should also be aware of the signs of tenancy fraud, such as tenants who are reluctant to provide personal information or who are unable to provide proof of identity.

Tenancy fraud is a serious problem that can have serious consequences for both landlords and tenants. It is therefore essential that landlords take steps to protect themselves from this growing problem. By carrying out thorough tenant referencing checks and using secure online platforms to manage rental payments, landlords can help ensure that their properties are not being used for fraudulent purposes.