Chestertons is calling for better referencing and ongoing tenancy checks across the industry, to prevent fraudsters from securing rental properties under false pretences.
This follows BBC Panorama’s There’s a Gangster in My Flat which examined how fraudsters are using fake IDs, forged references and falsified bank statements to take on tenancies under false pretences.
This is leaving some landlords dealing with serious property damage and lengthy legal processes to regain possession.
Chestertons uses bespoke referencing criteria, delivered by a specialist supplier whose technology, data and expert case handlers provide landlords with robust protection against fraud.
Its property management service includes inspections twice a year and ongoing contact with tenants.
Adam Jennings, Head of Residential at Chestertons, says: “Fake bank statements aren’t uncommon. That’s the value of having an experienced compliance team scrutinising the evidence, rather than relying on an algorithm to tick a box and move on.
“A PDF bank statement doesn’t tell you much on its own. Open banking means we’re looking at the real account, in real time, rather than relying solely on a document someone has put together themselves.
“Checks on move-in day aren’t enough. We inspect every property under our management twice a year, because some of the issues we see don’t happen at the start of a tenancy. A legitimate tenant may move out and someone else move in without the landlord being told.
“Good property management is about staying close to the detail throughout the tenancy, identifying problems early and giving landlords clear guidance when action is needed.”
The consequences of bad property management can leave landlords seriously out of pocket.
Panorama featured one landlord, whose tenant stopped paying rent before the property was found to be operating as a brothel. He lost four and a half months’ rent and faced a £4,500 repair bill before he could put the property back on the market.
The Renters’ Rights Act has also increased landlords’ responsibilities.
For example, asking for or accepting an offer above the advertised rent can result in a civil penalty of up to £7,000. Serious or repeated breaches can attract fines of up to £40,000.
Adam adds: “The Renters’ Rights Act makes professional oversight even more important.
“Landlords need to know who is living in their property. They also need to ensure every stage of the tenancy is managed correctly. Effective referencing, regular inspections and proper compliance processes help protect landlords, properties and legitimate tenants.”