Tenant fraud on the up
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Michael Portman, managing director of Let Insurance Services, a specialist referencing and rental insurance company, says the number of fraudulent tenants is on the increase.
He says while problems with agents and landlords are highlighted, not enough attention is being paid to the problem of fraudulent tenants.
He says: “Front office staff may be inclined to take tenants at face value.
“We recommend that staff have a checklist that includes obtaining ID documents and proof of current residency at an early stage of the tenancy application, and to be alert for anything possibly unusual that could increase the risk for the landlord.”
The latest survey from the National Landlords association, shows that nearly half, 47%, of all repossessions are due to rent arrears and in over 80% of the cases in took nearly five months for the tenant to move out.
Identity fraud has increased by 22% in the first six months of this year and there were over 50,000 victims of impersonation in the same period. This is the equivalent of 275 cases a day.
Portman adds: “It is an understandable problem faced by the staff in every lettings agent. It is natural not to assume the worst in people and is natural to give them the benefit of the doubt.”
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