Identity Fraud
Identity Fraud: Relevance to Landlords and Steps to Take to Avoid Becoming a Victim
Landlords are particularly susceptible to identity fraud both from tenants with a false identity and tenants who are looking to steal the identity of the landlord or previous tenants.
What can you do as a landlord to reduce the likelihood of becoming an identity fraud victim?
Landlord issues
Below are some steps you can take to protect yourself.
- Register your title to the property at the Land Registry with a current address for service.
- Register a restriction on your property title if you feel at risk.
- Ensure all financial information and other personal documentation is addressed to your current home rather your rental property.
- Following a void period ensure utility bills are put into tenants’ names and remove all post at the rental property which is addressed to you.
- Remove all personal documentation and belongings from the property prior to showing prospective tenants around.
- Check bank statements and credit card bills regularly, and investigate and report unusual entries.
- Use a shredder to destroy personal documentation which you no longer require.
- Arrange for your post to be redirected from the rental property.
- Store personal documents, passwords and usernames in a secure place.
- Obtain a credit rating every six months and be alert to false credit applications made in your name.
- Register with a mailing preference service so your name is removed from direct mailing lists.
Tenant issues
Knowing your tenant really is who he or she says she is is essential. The following steps should not only enable you to check out your tenants’ backgrounds but could also protect your tenants from identity fraud.
- Use a comprehensive tenant application form.
- Verify the identity of all new tenants with original documents, at least one having a photograph (for example, driver’s licence, passport, bank statements, utility bills, birth certificate, marriage certificate, national insurance document, benefits book, HMRC documentation, etc.).
- Carry out credit checks on all new tenants and be alert to tenants with financial problems and county court judgments.
- Follow up references for all tenants, including previous landlords and employers.
- Fit secure individual post boxes for tenants living in shared properties.
- Ensure tenants have their post redirected when they leave the property.
Consequences
The ramifications of being a victim of identity fraud are far-reaching.
- Financial – tenants will be intent on avoiding rent payments. They are also likely to evaporate into thin air with substantial rent arrears.
- Property – damage to your rental property is likely, leaving you footing the bill for repairs.
- Tenant v landlord protection – residents are generally protected regardless of identity and as a landlord it could take months to evict the tenant and obtain possession of your rental property.
- Time – you will need to spend hours preparing documents to prove you have been a victim of identity fraud and also to obtain a crime reference number from the police.
- County Court Judgment (CCJ) – you could end up with a CCJ against you if debts have accrued in your name. This will adversely affect your credit rating.
Guarding against identity fraud by taking the preventative steps listed above should go some way to ensuring that you as a landlord and your honest tenants do not have to suffer the wide-ranging damage that identity fraudsters leave behind.
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