When things you have always taken for granted, like heating and eating, are becoming too expensive, it’s no surprise that some are looking to cut corners and maybe live in a better part of their area than they could reasonably expect to afford.
Almost 280,000 properties across the UK, with a combined market value of £82billion, are occupied by fraudsters.
It was reported by Homeppl that 91% of the fraud that comes from rental applications stems from tenants attempting to disguise the true nature of their financial circumstances.
According to statistics, one in 50 tenancy applications are fraudulent and that rises to one in 20 in London.
With the demand for rental properties on the rise and competition to get that much sought-after flat or house increasing daily, the lengths to which some tenants will go to knows no bounds. Let’s analyse the most common instances of tenant fraud and tips to stop it
Fake ID
A huge amount of the fraud starts here, with a stolen or fake ID. It has become something of a business to produce fake IDs, with one man making nearly £300,000 from the money he earned from it.
Spotting the fakes requires some assertiveness on your part, cross-referencing all the details you have with external sources to make sure the driving licence/passport you have is genuine. If you’re still unsure, take a look at this website for more tips.
Bank statements
It’s no secret that rents in London have gone up – the average weekly rent as of last September was a whopping £553. So, proving they can pay it is where fraudsters come into their own. Many of them use doctored or fake bank statements.
If the information is on a PDF, check to see if it has been altered. If it has, then that’s a clue that the statement may have been tampered with. If you’re not sure, ask the experts or go to a bank to make sure what you have is legitimate.
References
Ever wondered why there are so many domain names? Well, some of them belong to entirely fake businesses, which have been set up to provide the owner with a reference that only they can verify.
There are several ways to check the veracity of the website – see how old it is. A recent website might suggest it’s been created for the purposes of providing such a reference. Be cautious, though, as there are plenty of new, legitimate websites.
Payslips
Creating a fraudulent payslip, exaggerating how much a tenant earns, is definitely one way of trying to prove you can pay the rent. With more and more payslips now electronic, fraudsters are now able to create new versions of payslips but with slightly exaggerated figures to boost their perceived ability to pay.
It’s easy enough to check whether the figure on the payslip is legitimate by contacting companies house. They can check to see whether the payslip exists and also whether the business that the client ‘works’ for exists.
Here at LeBern Property, we have 10+ years of property management experience. For information and advice on the lettings process, management of your property, finding and retaining tenants do not hesitate to contact us at one of our branches.
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