A Tenant’s Guide to Avoiding Rental Fraud

Renting a property can be an exciting experience, but it can come with its challenges, especially as rental fraud becomes increasingly common. Fraudsters are becoming more sophisticated with their schemes, but with the right knowledge, you can confidently navigate the rental process and avoid falling victim. We will take a look at their techniques and offer our best advice as to how to avoid them.

Common Rental Fraud Scams

Fake Listings

Scammers create attractive-looking property ads for homes they don’t own or that don’t exist and usually ‘borrow’ images of legitimate properties from valid rental sites. These ads are commonly seen on social media and selling marketplaces such as Gumtree and Facebook Marketplace. It’s worth knowing that only registered letting agents can add properties to rental websites such as Rightmove and Zoopla, making them a good place to start looking for a property.

Advance Payment Requests

Fraudsters ask tenants to pay deposits or fees upfront before viewing the property. This practice should set alarm bells ringing for rental fraud as a legitimate Landlord wouldn’t want you to pay anything before a viewing.

Identity Theft

Sharing too much personal information can lead to fraudulent use of your identity. Be aware that fraudsters may pose as legitimate landlords or letting agents to trick potential tenants into providing sensitive details like passport information, utility bills, bank statements, or national insurance numbers. They might claim these documents are required for “background checks” or “tenancy approvals,” but in reality, they use this data to commit crimes such as opening bank accounts, taking out loans, or engaging in other fraudulent activities in your name.

How to Protect Yourself From Rental Fraud

Verify the Letting Agency

Always ensure you are dealing with a reputable local letting agency. Look for memberships in professional bodies like The Property Ombudsman or ARLA Propertymark.

Visit the Property

Always view the property in person to confirm its authenticity. Reasons as to why you can’t view the property such as the landlord being away or it’s currently occupied, should be red flags as rental fraud as they may be impersonating a Landlord or Letting Agent. Scammers aside, viewing a property should be a crucial part of the rental process so you can determine whether the property is the right fit for you.

Avoid Quick Transactions

Be wary of landlords or agents pushing for quick decisions or payments without proper paperwork. Scammers often create a sense of urgency, such as claiming there are many interested tenants or that you’ll lose the property if you don’t act immediately. This tactic pressures you into paying deposits or fees without proper checks. Taking your time ensures that you make informed decisions and protect yourself from potential scams. A trustworthy landlord or agency will understand the importance of this and respect your need for due diligence. At Kings & Co Lettings we follow a formal procedure for new tenants and will begin by asking you to complete our tenancy application form.

Check the Tenancy Agreement

Read the agreement thoroughly and verify its authenticity. Examine all the agreement details including details about rent, deposit, payment methods, and notice periods. Take time to cross-check their contact details with official records or websites. Ensure the agreement complies with UK law. a genuine agreement with be an Assured Short-hold Tenancy Agreement (AST). This agreement will be for an initial fixed term usually of six months, after which the tenancy will lapse automatically into a periodic month-to-month basis unless a further contract by either the tenant or landlord is required. The agreement should mention deposit protection in a government-approved scheme, such as TDS, Mydeposits or the Deposit Protection Service (DPS). If this is absent, it’s a warning sign.

Secure Payments

Use secure and traceable payment methods, like bank transfers, standing orders, or payment platforms which provide a clear transaction record. This serves as proof of payment if any disputes arise in the future. Unsecured payments, such as cash, are difficult to recover if something goes wrong. Secure payment methods often come with fraud protection or the ability to dispute a transaction. At Kings & Co Lettings your deposit will be protected with the Deposit Protection Service.

Protect Your Information

Only provide necessary personal details and ensure the agency handles your data securely to prevent identity theft.

What to Do if You Encounter Rental Fraud

Report It – Notify Action Fraud, the UK’s national fraud and cybercrime reporting centre, or the police.

Inform the Letting Agency – Let the legitimate letting agency know about the fraudulent rental listing.

At Kings & Co Lettings you will be in safe hands, we’re committed to providing tenants with transparent, trustworthy services. Renting shouldn’t be stressful, and with the right precautions, it can be an enjoyable process. If you have questions or need guidance, our team is here to help.