Fraudsters are a major concern for the property rental market in the UK. They use various tactics to swindle both landlords and tenants out of their money. One of the most common techniques is the use of fraudulent documents in tenancy applications. In this article, we will explore how fraudsters are using these documents and what landlords and tenants can do to protect themselves.
What are fraudulent documents?
Fraudulent documents are documents that have been altered or forged in some way to deceive someone. They can be physical documents such as passports, driving licenses, or bank statements, or electronic documents such as emails or online application forms.
Fraudsters use these documents to create false identities or to convince landlords that they have a good financial history. They can also use them to prove that they have a job or that they are eligible to rent a property.
How are fraudsters using fraudulent documents in tenancy applications?
Fraudsters use fraudulent documents in tenancy applications to convince landlords that they are suitable tenants. They may use fake bank statements to show that they have a good credit history or fake references to show that they are trustworthy.
They may also use fake IDs to create a false identity or to hide their criminal history. For example, they may use a fake passport or driving license to hide a criminal record or to pretend that they are from a different country.
Fraudsters may also use fake documents to inflate their income. For example, they may use a fake job offer letter or payslip to show that they have a higher income than they actually do. This can make them appear to be a more attractive tenant to landlords who are looking for someone with a stable income.
What are the risks for landlords and tenants?
The risks of using fraudulent documents in tenancy applications are significant for both landlords and tenants. For landlords, the risks include:
Financial loss: If a tenant is using fraudulent documents, they may not pay their rent or damage the property, leaving the landlord out of pocket.
Legal problems: If a landlord discovers that a tenant has used fraudulent documents, they may have to evict them, which can be a time-consuming and expensive process.
Reputation damage: If a landlord has a reputation for renting to fraudsters, it may deter other potential tenants from renting their properties in the future.
For tenants, the risks include:
Financial loss: If a tenant uses fraudulent documents to secure a tenancy, they may be required to pay rent in advance or a larger deposit, leaving them out of pocket if they are discovered.
Legal problems: If a tenant is discovered using fraudulent documents, they may face legal action, which could impact their future ability to rent properties or obtain credit.
Reputation damage: If a tenant has a reputation for using fraudulent documents, it could impact their future employment prospects or social standing.
How can landlords and tenants protect themselves?
There are several steps that landlords can take to protect themselves from the risks of using fraudulent documents in tenancy applications.
For landlords:
Use a reputable letting agent: Letting agents can carry out thorough checks on tenants and their documents to ensure that they are genuine.
Ask for original documents: Ask tenants to provide original documents rather than photocopies, and check them carefully to ensure that they are genuine.
Carry out credit checks: Credit checks can help landlords to verify a tenant’s financial history and ensure that they are likely to be able to pay their rent.
Check references: Ask for references from previous landlords and employers and follow them up to ensure that they are genuine.
Trust your instincts: If something seems too good to be true, it probably is. If a tenant seems too good to be true, carry out additional checks or refuse their application.
