July, 2025
Tenant fraud is a growing concern in the private rental sector. While most tenants are honest and reliable, some individuals apply for rental properties using false information, fake documents, or misleading intentions. The results can be financially and legally devastating for landlords.
At Arlington Park, we treat tenant referencing as a critical part of the letting process. We don’t cut corners. Instead, we combine experience, technology, and thorough checks to make sure every tenancy starts on solid ground.
In this article, we share two real-life examples of tenancy fraud and explain what landlords can do to protect themselves.
In one case, a woman applied for a tenancy claiming to be in urgent need of secure housing. She presented herself as vulnerable and offered to pay six months’ rent upfront in cash. The application appeared genuine, and the payment created a sense of confidence that this would be a smooth tenancy.
However, once the tenancy began, communication stopped. The tenant became unreachable and refused access for inspections. Eventually, forced entry revealed the property had been converted into a cannabis farm. She had never lived there.
The financial and structural damage to the property was significant. The legal process to regain possession was long and complex. The upfront payment, which initially seemed like a sign of reliability, had in fact been used to bypass checks and create a false sense of trust.
While rent paid in advance can sometimes be a genuine offer from an honest tenant, in cases like this it is used as a tactic to avoid scrutiny. A large upfront payment should never replace proper referencing. It should always be treated as part of the wider vetting process, not a shortcut around it.
Another example involved a central London flat let to an international student. She provided a passport, visa, and university enrolment documents, which appeared to be in order. However, no formal referencing was carried out. The agent did not verify a UK guarantor, check financial records, or confirm address history.
Again, a large upfront payment was made, this time covering an entire year’s rent. The tenant delayed inspections repeatedly and insisted she still lived there. Eventually, access was granted, and it became clear she had never lived in the property at all.
Instead, the flat had been sublet to multiple unrelated occupants. It had been converted into an unlicensed HMO. The new residents had signed tenancy agreements that appeared to be genuine and included the name of a reputable law firm as managing agent. The law firm had no idea their name was being used.
This left the landlord responsible for evicting innocent tenants and facing the legal implications of operating an unlicensed HMO. It also revealed just how sophisticated and convincing tenant fraud can be.
These cases show that skipping vital checks can expose landlords to major risks. Fraud tends to succeed when referencing is rushed or reduced to a formality. A credit score alone is not enough to spot a scam.
Tenant referencing should include identity verification, address history checks, employer and landlord references, document authentication, and financial assessments through open banking. It should not rely solely on what a tenant provides but be backed by independent data and insight.
At Arlington Park, our referencing process includes a full Know Your Customer report and open banking checks to verify income and spending patterns. We look for red flags and inconsistencies that might be missed by a basic referencing service.
It is important to understand that paying rent in advance is not always a sign of fraud. Many genuine tenants offer to pay several months up front for valid reasons. They may be moving to the UK without a credit history, between jobs, or trying to strengthen their application in a competitive market.
The difference lies in how the payment is presented. A trustworthy tenant will be open about their situation, happy to be fully referenced, and in no rush to sign the agreement. A fraudster may offer money quickly, avoid questions, discourage checks, or push for early access. These behaviours are warning signs.
As long as rent in advance remains legally permitted, landlords must continue to carry out full referencing on every applicant. Whether rent is paid monthly or annually, the process should not change.
The Renters’ Reform Bill, once passed into law, may bring changes that affect how landlords handle rent in advance. Until that point, upfront payments are still legal, but they should never be used to justify skipping proper checks.
Landlords need to be cautious and consistent in how they approach all tenancies. Each one should begin with the same level of care and attention.
Tenant fraud thrives in situations where landlords or agents feel rushed. The desire to fill a vacancy quickly can sometimes lead to shortcuts, but these shortcuts often come at a much higher cost later on.
At Arlington Park, we take the time to get it right. Our referencing system is designed to uncover risks early and protect your investment from the very beginning. Whether we are verifying documents, cross-checking employment details, or spotting patterns in income, we give landlords peace of mind through a detailed, human-led process supported by advanced technology.
If you are a landlord and want to avoid tenancy fraud, speak to our team at Arlington Park. We are here to help you protect your property and secure trustworthy tenants.
