A property expert has shared his top five tips on how to avoid the attention of fraudsters targeting the property sector.
Jonathan Rolande’s advice comes as new analysis by the London-based firm, Benham and Reeves, has highlighted the increasing problems facing letting agents with forged identification, digitally-manipulated supporting documents, and undeclared CCJs and IVAs.
The issue is said to be particularly acute in London, where agents have been increasingly reliant on digital screening methods to lighten their workloads.
Rogue tenants have kept pace with the rapid evolution in AI and digital technology, which can quickly process vast amounts of data, and have been increasingly inventive in methods they use to game the system.
Last month alone, the firm said it detected eight forged passports or IDs, 40 altered bank statements and other supporting documents, 50 fake employment references, and 30 undeclared county court judgments and IVAs.
There are reports that personal information available on LinkedIn are being used by scammers to dupe HR departments into providing salary and employment references.
Fake IDs and references often used by fraudsters to gain access to a property who then re-rent it to people who would not otherwise be able to get a flat or house.
Another common scam is called “cuckooing” where accommodation is rented out legitimately and is then promptly taken over by criminals and turned into a cannabis farm.
A growing type of fraud is overloading flats with undocumented workers, which can result in landlords and agents being prosecuted for breaching regulations, particularly those relating to multiple occupancy.
Jonathan Rolande, founder and director of House Buy Fast, warned: “When we think of fraud in the property sector, we usually think of hard-pressed tenants falling victim to scams where deposits are put down on non-existent homes or impersonation fraud, where fraudsters sell a house from under the owner’s feet.
“In the fast-paced world of lettings, landlords and their agents must be on the lookout for tenant fraud, where documents are faked to show different names, income and previous renting history.
“If a tenant using fake information manages to rent a property, there are a number of issues to worry about.
“Firstly, anyone prepared to commit fraud to rent a home is unlikely to be a model tenant. Some reasonable people may feel forced to fake documents due to stringent income multiples and the housing crisis but most will have less ‘understandable’ reasons.
“Criminals looking for properties to run illegal activities will use fake documents. Growing cannabis or subletting and turning the property into an illegal HMO are very profitable options for fraudsters.”
Jonathan shared his top five tips on avoiding becoming a victim of fraudsters:
- Unless you have experience, use a reputable letting agent to find your tenant â saving a fee may end up costing considerably more in the long run.
- Ensure you have quality landlord insurance. A decent policy will cover tenant damage, legal fees and loss of rent if they stop paying.
- If in doubt do not accept them. It’s better to have a property empty than let in a bad tenant.
- Letting agents are busy so do your own research: check social media and news sites to find a match.
- Check references by phone – emails are too easy to fake.
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