A chilling new trend has emerged among UK landlords: a staggering 77% believe tenant fraud is on the rise, with nearly four in ten describing it as significant. The sobering statistic comes from a recent survey of 1,000 landlords by LegalforLandlords, which shines a light on the widespread problem.
The most common form of deception involves tenants providing false information during the initial application process, only to default on rent payments later – a tactic used in a third of all cases. But that's not all: nearly one in five landlords who've fallen victim to fraud have discovered their property is being used for illicit activities, while 10% have reported unauthorised rent-to-rent schemes or illegal subletting.
Landlords are often left reeling from the financial consequences of tenant fraud. A quarter reported losses of £5,000 or more, and a further 22% suffered losses between £2,500 and £4,999. Only a tiny minority (2%) escaped unscathed financially, while nearly a third absorbed the loss without recovering any money.
Sim Sekhon, group chief executive of LegalforLandlords, warned that while some cases make headlines, the real concern is the prevalence of tenant fraud across the UK. He urged landlords to be vigilant and use robust referencing and verification processes to protect themselves against increasingly sophisticated scams.