For landlords, finding a tenant has traditionally involved a familiar process: an application, proof of income, references, identification and affordability checks.
But tenancy fraud is becoming increasingly sophisticated, and what looks genuine on paper may no longer tell the full story.
Recent research from a leading UK tenant referencing provider, based on more than one million completed tenant references, highlights how quickly the risks are changing. The research found that identity manipulation had increased by more than 140% year on year.
For landlords, there is an important message behind those figures: professional property management is increasingly about protecting your investment, not simply collecting the rent.
A convincing application isn’t necessarily a genuine one
Technology has made it easier than ever to produce documentation that appears authentic.
AI can now be used to create convincing payslips, bank statements and employment information in a matter of seconds. Fraudsters are also becoming more sophisticated in the way they present applications, making it increasingly difficult to identify fraudulent information simply by looking at the documents provided.
This makes relying on paperwork at face value increasingly risky.
A professional managing agent should have robust processes in place to verify applicants independently, check identity and affordability, identify inconsistencies and ensure appropriate referencing is completed before a tenancy is agreed.
The wrong tenant can be an expensive mistake
Tenant selection isn’t simply about filling a vacant property as quickly as possible.
The same research estimated that a single fraudulent tenancy could potentially expose a landlord to costs approaching £10,000 when rent arrears, legal costs and void periods are taken into account.
And the financial consequences are only one part of it.
A problematic tenancy can mean months of additional administration, uncertainty and worry, particularly where possession of the property ultimately needs to be recovered.
That is why the quality of the checks carried out at the beginning of a tenancy matters so much.
Why professional management matters
It can be tempting to think that managing a rental property is simply a case of advertising it, finding a tenant and collecting the rent each month.
In reality, good management starts long before the tenant receives the keys.
At Oakfield Estate Agents, our role is not only to manage your property but also to help protect your investment and reduce your exposure to risk.
That includes robust tenant referencing and identity checks, appropriate tenancy documentation, rent and arrears management, maintenance, compliance, record keeping and having an experienced team available when something doesn’t go according to plan.
As the methods used to commit tenancy fraud evolve, the checks and processes used by landlords and agents need to evolve with them.
Is self-managing really saving you money?
For landlords considering whether to use a managing agent, the management fee will naturally be part of the decision.
But perhaps there is another question worth asking:
What risk am I taking on by managing the property myself?
A management fee is a predictable cost. A fraudulent tenant, significant rent arrears, a compliance failure or a tenancy that has not been managed correctly can be anything but predictable.
Professional management isn’t simply about dealing with problems when they happen.
A significant part of good property management is putting the right processes in place to prevent problems happening in the first place.
Protecting your property starts with who you put in it
The rental market is changing. Technology is changing. Regulation is changing. And unfortunately, the methods used by those attempting tenancy fraud are changing too.
Landlords shouldn’t be expected to become experts in fraud detection, referencing, legislation, compliance and tenancy management alongside everything else they do.
That’s where having an experienced professional managing agent can make a real difference.
If you’re currently managing your own rental property and would like to understand how Oakfield could take care of it for you, speak to our team. Check out our contact details here.