Tenancy fraud hitting landlords hard, leading law firm warns
Most landlords who fall victim to fraud by renters are unable to retrieve the financial losses, according to LegalforLandlords.
Tenancy fraud is hitting landlords hard, with 70% unable to retrieve the resulting financial losses, according to a leading evictions expert.
Around 275,000 property owners have been victims of illegal activity by tenants, LegalforLandlords estimates.
This figure is around 5% of the total number, and is costing landlords an estimated £380million a month, with £266million never seen again.
Rent default
A survey by Legalforlandlords reveals the most common form of tenancy fraud is defaulting on rent, which accounts for 70%.
Common red flags of a fraudster tenant include having a limited or questionable online footprint, suspicious or strange references or referees, and attempts to hide or disguise background checks.
Previous research from LegalforLandlords recently highlighted that the average timeline for repossession now stands at more than 26 weeks.
The survey also found that 20% of landlords say they have been victims of illegal sublets and 8% report having fallen for fake financial information – while other common rental scams include ID fraud and money wire transfer scams.
Tenancy fraud is a growing and increasingly complex issue across the private rental sector.”
Sim Sekhon, Group CEO at LegalforLandlords, says: “Tenancy fraud is a growing and increasingly complex issue across the private rental sector, and these figures highlight just how significant the financial impact has become for landlords.
“While many scams are becoming more sophisticated, a large proportion can still be prevented through thorough, fastidious checks and robust legal processes at the very start of a tenancy.”
