The relationship between landlord and tenant should be one built on mutual trust. But that doesn’t always happen. Tenants can twist the truth, both in their initial hunt for a property or once they are in. If you don’t spot the signs early then not only will your relationship get off on the wrong foot, but your rental investment could also be at risk.
Exaggerating income
One of the most likely ways in which tenants will twist the truth is by being dishonest about their circumstances. They may overstate income if affordability is a challenge and they worry they may not be accepted for a property. They may tell a little white lie about how much they are paid or their outgoings or they could be going a step further and editing statements or payslips to show a higher income. It’s important to be aware of any risks around affordability since you won’t want rent arrears, especially if you rely on your rental income to pay your buy-to-let mortgage.
Keeping pets
Once the Renters’ Rights Bill comes into force tenants will have greater rights to keep a pet in their property. Until then it’s still landlords who have the power to decide if a tenant can have a pet or not. Some tenants may simply ‘forget’ to mention Buster the dog or sneak in a cat or two once they’ve moved in. But the telltale signs of pet smells and scratching damage will likely alert you to the fact they’ve bent the rules. Since pets will be allowed in the future, however, this may be easier to tackle as a conversation where you insist they take out pet insurance as a protection.
Sub-letting or other activities
More serious rental fraud comes from potential tenants not just twisting the truth but telling determined lies. They might be looking to use your property for the wrong purposes, either to sublet and make additional cash or for other unlawful uses. This is where you need to be extra vigilant since these could be sophisticated criminals with equally sophisticated means to defraud.
Red flags to beware of:
Pushing for a quick deal
Keeping a lookout for potential red flags is essential. There are often some obvious tells that something may be amiss. If a tenant is pushing to get a deal done quickly or offering you a greater advance payment than required (another practice that will end under the Renters’ Rights Bill) then it could be because they are trying to hide something. They may have been evicted for breaking the rules at their previous property and are trying to get in before you find out, for example.
Failure to provide the information you need
Prospective tenants may also make excuses or delay when asked to provide information such as identification documents or references or refuse to undergo a credit check. Of course, they may just be disorganised or they could be trying to bend the truth.
How to protect yourself
Being aware of potential red flags and following thorough screening and verification processes should help protect you and your property. Investing in the services of companies that offer more sophisticated tenant screening and referencing – many of which use AI to weed out those twisting the truth – can also help.
