Date Published 26 February 2024
There's never been a tougher time for the private rented sector (PRS) with demand soaring and stock dwindling, tenants are struggling with finding a place to live.
This leaves tenants battling it out for properties - but some face extreme vetting procedures to access homes to rent.
However, with tenancy fraud applications on the rise, there is cause for concern for landlords over whether tenants can be trusted to pay the rent.
153% increase in fraudulent tenancy applications
Tenant referencing is a review of prospective tenants and any guarantors.
Referencing can bring peace of mind to landlords knowing they can let out to a suitable tenant who can pay rent.
According to the NRLA, reference checks can vary depending on the provider, but may include:
Suitable identification such as a passport or driving licence.
Either a utility bill or a bank statement
Credit check; clear of County Court Judgements, and bankruptcies & indicating confirmation of residency.
Confirmation of employment
References from former landlords
A tenant could fail the reference checks for a variety of reasons.
Some of the common techniques used by fraudsters for tenant applications include fake IDs, such as passports and driving licences, and doctored documentation such as payslips and bank statements.
Companies offer checks to landlords and letting agents to check the validity of tenant applications. But much of the vetting process comes down your own agent's experience, knowledge and good old fashioned ‘gut instinct'.
Data shows that up to 10% of applicants can be deemed to have committed fraud.
91% of all tenancy fraud we catch comes from the falsification of financial documents.
150 cases of tenancy fraud every day
According to the 2020 Fraud and Corruption Tracker by the Chartered Institute of Public Finance and Accountancy (CIPFA), false tenancy applications are the fastest-growing area of housing fraud, costing an estimated £60.1m in the UK.
At Noonan we take tenancy fraud very seriously indeed.
A combination of professional referencing via our partner Vouch and our many years of knowledge and experience, you can be sure your investment is protected.
