Tenancy fraud can be a problem in the property industry, particularly when it comes to issues around subletting. As a landlord, the only way to protect yourself is to be vigilant and to use a letting agent that you know is inspecting the property regularly and is in regular touch with the tenants.
Property Expert Series: Tracy Wardle from from Abode Property Management
- Part 1: Introducing Tracy Wardle from Abode Lettings
- Part 2: Successes and Mistakes
- Part 3: What Are the Best Rental Areas in Greater Manchester?
- Part 4: What Questions do Landlords Need to Ask Their Letting Agents?
- Part 5: Tenancy Fraud – Possible Problems for Landlords
- Part 6: How has Manchester’s Rental Market Changed in the Last Few Years?
- Part 7: What Is a Letting Agent?
Amy: Tracy, do you know much about tenancy fraud? This is something which, I think, is a hot topic, online. Have you ever encountered tenancy fraud, before?
Tracy: No, I think the most that we have had is subletting and the chap did, actually, get prosecuted.
Amy: I think this is something that is happening more and more now, with rent-to-rents and lease-options and people who are trying to put these, quite creative agreements, together. But they’re not always aware of all of the boxes they should be ticking, in order to do that.
So, you may do a lease-option with a landlord but that landlord has a mortgage on the property and that mortgage is not going to allow you to do certain things with the property, which you intended to do.
As you just demonstrated, these things can be taken further, they can be taken to court. You can get substantial fines, for them.
Tracy: Luckily, we nipped it in the bud. We saw the signs. It was a company-let and the company would put up all their employees there but over-and-above what they should have had, numbers-wise.
On an inspection… “There are too many people here. Too many beds”. There was a mattress under the stairs.
And one of the ladies stated that she was paying this chap the rent on Friday, so we, obviously, had to report that.
Amy: But again, that is the beauty of employing an agent that is vigilant and is doing regular inspections and is in good contact with tenants. You will pick up on those types of problems and nip them in the bud before they get out of hand.
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