FRAUDSTERS TARGETING TENANTS: STAY SAFE

Fraudsters Targeting Tenants: Stay Safe

Given the number of changes and regulations in the lettings industry of late, it is no surprise that many people have been left confused or uncertain as to what is happening or what they should do next. Many landlords have been left annoyed or frustrated by changing regulations, so it is no surprise that many tenants have been left bewildered as to what they should do for the best,

Sadly, this confusion creates opportunities for opportunist thieves and Action Fraud have issued a warning to tenants that some crooks are posing as landlords and asking for deposit payments to be made up front.

There has been a lot of media focus on the upcoming tenant fees ban, which comes into effect in June of 2019. This will see landlords limited in the fees they can charge their tenants and there will also be a cap placed on the size of deposit a landlord can request. With so much focus on changes and deposits, it cannot be surprising that some tenants have been caught out with requests.

A lot of money has been lost by prospective tenants

Action Fraud has said they received 28 reports, in a few months, where tenants have been asked to pay a deposit up-front. The total amount of money that has been lost in this fraud amounts to nearly £20,000. Given the cost of renting and the pressure, many of us are feeling in financial terms these days, it is fair to say that most people cannot afford to lose money in this manner.

Be on guard if you are looking to rent

The premise of the fraud sees crooks contacting prospective tenants demanding a deposit is paid and some of these crooks are also asking for a month’s rent in advance. This happens before a property is viewed in some cases. Once the money has been transferred to the crook, an email is sent to the tenant saying that the deposit money has been received. The email is set up to look as though it has been sent from the Tenancy Deposit Scheme, an official body in the UK.

Sadly, this money has been taken by fraudsters leaving the would-be tenant out of pocket.

Pauline Smith is the director of Action Fraud and she said; “Devious fraudsters are targeting a whole host of victims, from university students to professionals, for their own selfish gain. Falling victim to rental fraud can have a huge impact on your finances at a crucial time where every penny counts. This is why it’s so important to follow our advice to protect yourself. If you think you have been a victim, report it to us.”

Quick tips for tenants to avoid being scammed like this include:

  • Only deal with reputable agents or landlords and view the property with them
  • Don’t allow yourself to be pressurised into sending money
  • Visit the TDS website to check on the validity of your payment
  • Contact Action Fraud to receive support in making a claim if you have been a victim of fraud

Steve Harriott is the Chief Executive of the Tenancy Deposit Scheme and he said; “If anyone has any queries or isn't sure about whether or not the process they're being asked to follow is correct, they can contact TDS who will be more than happy to guide them. Deposits on rental properties must be protected in a government-approved scheme or through an insurance policy. If they are not, a tenant is entitled to compensation and the return of the deposit, even if it has not been lost or withheld.”

As Stockport property specialists, we want to ensure you stay in touch with the latest property news. If you are looking for assistance in this area, give Spencer Harvey a call on 0161 480 8888 or send us an email at info@spencerharvey.co.uk. For a free valuation please visit: https://www.spencerharvey.co.uk/valuation-enquiry.html

 



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