This is according to Let Insurance Services which says that the rise in tenant fraud is a symptom of the times and it is likely to increase as government cuts take effect. It could get worse if a double-dip recession comes true.
“It is an unfortunate fact that while problems with agents and landlords are highlighted, not enough attention is being paid to the problem of fraudulent tenants. Front office staff may be inclined to take tenants at face value,” said Michael Portman, managing director of Let Insurance Services. “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.”
That tenants can do wrong is borne out by the figures. The latest survey from the National Landlords association, NLA, 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.
Also, Association of British Insurers, ABI, statistics show that there were 122,000 fraudulent insurance claims last year. This is an increase of 14% over the previous year.
Anecdotal evidence from all around the country also shows a rising amount of deliberate fraud, where tenants fill out tenancy application forms fraudulently as they move from property to property with no intention of keeping up with the rent. It is not unknown for this to happen within the same small town.
