Rental fraud is on the rise, with new Home Office figures revealing there were 5,000 reported cases of rental fraud last year, resulting in a staggering £9 million in losses. Whether you are a tenant searching for a new home or a landlord looking to rent out your property, it’s important to understand how rental fraud happens and what steps you can take to stay safe.
What is Rental Fraud?
The Home Office defines rental fraud as a crime where scammers advertise properties to let that either don’t exist or are not theirs to rent out. Fraudsters often create fake listings using images and descriptions stolen from genuine property adverts. These listings are then used to lure in unsuspecting tenants and trick them into handing over money.
How to Spot the Signs of Rental Fraud
Avoiding rental scams starts with knowing what to look for. Rental fraudsters tend to target tenants who are in a rush to secure a property and who may be searching for below-market rents. Common warning signs include:
- Properties offered at rents that are significantly lower than local market levels.
- Requests for upfront payments, such as deposits or the first month’s rent, before a viewing has taken place.
- Pressure to act quickly or risk losing the property.
- Communication that relies heavily on social media platforms, rather than through a reputable letting agent or professional listing site.
Who Is Most at Risk?
While rental fraud can affect anyone, the latest data from the Home Office’s National Fraud Intelligence Bureau (NFIB) highlights that young people are particularly vulnerable.
- The 18 to 29 age group accounted for 48% of all reported cases of rental fraud last year.
- The 30 to 39 age group made up 25% of cases.
As Fraud Minister Lord Hanson explains, “Rental fraud is an utterly shameful crime, and this new data should serve as a stark reminder that anyone can be a victim. It doesn’t matter how streetwise and tech-savvy you are; fraudsters will target anyone who doesn’t stop and think before handing over their money.”
How Tenants Can Protect Themselves
If you’re looking to rent, avoiding rental fraud should be a top priority. The Home Office recommends the following steps:
- Never pay money upfront before viewing a property in person.
- Avoid rushing into decisions, even if you’re feeling pressure to secure a home quickly.
- Be cautious of properties advertised on social media and always verify the legitimacy of any listing.
- Use a reputable local letting agent to ensure the property is genuinely available to rent.
How Landlords Can Avoid Rental Fraud-Related Issues
Although rental fraud often targets tenants, landlords can also be indirectly affected. If you market your rental property independently, potential tenants may question whether your listing is genuine – particularly if the rent is significantly under or over local market value, or if the advert is poorly presented.
Landlords should consider working with a trusted local letting agent to ensure their property is marketed professionally and seen by quality tenants. A letting agent can:
- Help you set a realistic and competitive rent based on current local market rents.
- Create professional, trustworthy listings that won’t raise red flags.
- Advertise on recognised property platforms, avoiding the risks associated with casual social media advertising.
- Handle tenant enquiries and tenant referencing, reducing the risk of rental scams involving your property.
Final Thoughts
Rental fraud is a growing concern for both tenants and landlords, but awareness and caution can significantly reduce the risks. Working with a reputable letting agency is one of the best ways to avoid falling victim to scams, whether you’re letting or renting a home.
If you’d like to know more about our professional letting and property management services, or want advice on how to avoid rental fraud, get in touch with us today.
And if you know someone currently renting or letting a property, please share this article to help them stay safe.
Source: Home Office’s National Fraud Intelligence Bureau (NFIB)
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