Young tenants are increasingly at risk of rental fraud, research suggests.
Tiger highlights that those aged 18-29 made up nearly half of all reported rental fraud cases across England, Wales and Northern Ireland last year.
With peak renting season underway and prices climbing by over 6% in the past year, fraudsters are exploiting demand with increasingly sophisticated scams – from fake listings to illegal charges, according to the insurance specialists.
With young people eager to find housing and secure a place to live, many are rushing into rental agreements without thoroughly verifying listings or landlords.
Private rental prices paid by tenants in the UK rose by 6.2% in the 12 months to January 2024, leaving people vulnerable to increasingly sophisticated rental scams that promise attractive deals.
Ian Wilson, renters insurance expert and Managing Director at Tiger, said: “Rental scams are becoming more sophisticated, taking advantage of the growing demand for rental properties and the urgency of renters trying to secure a property.
“Younger renters are often seen as easy targets, given this may be their first time navigating this often-complicated process.
“It’s crucial that renters, especially those new to the property market, take their time, ask the right questions, and never feel pressured into sending money or personal details.
Tiger has identified five key red flags to watch out for when renting – insights worth sharing with prospective tenants.
Fake listings
Beware of fraudulent property adverts offering attractive prices for prime accommodation. These listings often use stolen photos and may be for properties that do not exist or are no longer available to rent. It is important to verify the legitimacy of any listing before making a commitment.
Illegal charges
Under the Tenant Fees Act 2019, landlords and letting agents are prohibited from charging tenants for reference checks, credit checks, or guarantor references. If you are asked to pay for these services, it could be an illegal fee or part of a scam. Always check that any fees comply with current legislation.
Excess cleaning charges
Some landlords or agents may impose cleaning fees at the end of a tenancy that seem unreasonable or were not previously disclosed. Legitimate cleaning costs should be clearly detailed in the tenancy agreement and reflect the condition of the property beyond normal wear and tear. Be sure to take photo and video evidence when you move in to record the existing condition of the property.
No property viewingÂ
Scammers often refuse or make excuses to prevent tenants from viewing a property, either in person or virtually, to avoid being caught out. It is essential to view the property yourself or through a trusted representative before paying any money or signing agreements.
Subletting or unauthorised lettings
Some scams involve tenants subletting properties without the landlord’s permission, which can lead to eviction. Always make sure that the person advertising the property is either the legal landlord or a licensed agent with the authority to let the premises. Ask for identification, official documents, and cross-check their credentials if in doubt before parting with any money.
Read the orginal article: https://propertyindustryeye.com/fraud-warning-issued-ahead-of-busy-rental-market/
