Warning for young renters as fraud soars

With peak renting season underway,* renters are being warned about the fraudulent tactics used by scammers.

Home and renters insurance experts at Tiger.co.uk are sharing the red flags to look out for when searching for properties to rent.

New data has found that those aged between 18 and 29 accounted for 48% of all reported rental fraud cases in England, Wales, and Northern Ireland last year.**

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.

Fortunately, there are steps renters can take to protect themselves and avoid becoming part of these statistics.

Ian Wilson, renters insurance expert and Managing Director at Tiger.co.uk 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’s research on renting red flags should help renters prepare and be on alert for any suspicious activity. Renters or contents insurance can also help – by adding tenant’s liability to the policy, it covers accidental damage to the landlord’s property, adding an extra layer of protection that may reduce the risk of disputes over unjustified charges.”

Five red flags to watch out for when looking to rent:

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 viewing 

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.

Tiger.co.uk gives customers the tools to help them compare and find saving on all sorts of property insurance, such as renters or contents, landlord and home insurance.

References:

*https://landlordsportal.co.uk/when-is-the-best-time-to-rent-out-property/#:~:text=Summer%2C%20from%20July%20to%20September%2C%20is%20the%20peak%20for%20renting,Tenant%20Leave:%20UK%20Landlord%20Guide

**https://www.gov.uk/government/news/young-people-urged-to-think-fraud-over-rent-offers

***https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/indexofprivatehousingrentalprices/january2024

This article is intended as generic information only and is not intended to apply to anybody’s specific circumstances, demands or needs. The views expressed are not intended to provide any financial service or to give any recommendation or advice. Products and services are only mentioned for illustrative rather than promotional purposes.