Tenant fraud is no longer just a questionable payslip or a vague landlord reference. It has become more polished, more convincing and much harder to spot without proper checks. With Section 21 now gone under the Renters’ Rights Act, and more tenants competing for fewer available homes, landlords cannot afford to treat referencing as a formality. The real protection starts before the keys are handed over.

The market has changed

The private rented sector is under pressure.

Before the Renters’ Rights Act came into force, many landlords served Section 21 notices. Some wanted to sell. Others were dealing with arrears, poor conduct, breaches of tenancy or difficult tenancies that had become too risky to continue.

Now Section 21 has gone, possession is more evidence-led and process-driven. Once the wrong tenant is in occupation, getting the property back can take time, money and paperwork.

That means tenant selection is now one of the most important decisions a landlord makes.

Not just the rent.
Not just the move-in date.
The applicant.

 

More applicants does not mean lower risk

With fewer rental homes available, we are now seeing around eight tenants competing for every property in some areas.

On the surface, that sounds positive for landlords. More demand should mean more choice.

But high demand does not automatically mean high-quality applicants.

When tenants are desperate to secure a home and landlords are keen to avoid voids, the temptation is to move too quickly. That is where mistakes happen.

A busy inbox is not a substitute for proper referencing.

If several people want the property, the key question is not “who can move fastest?” It is:

• Who can be properly verified?
• Who can genuinely afford the rent?
• Who passes robust referencing?
• Who is suitable for rent guarantee and legal expenses cover?
• Who is consistent across the whole application?

That is the difference between filling a property and protecting an investment.

Tenant fraud is harder to spot

Years ago, a weak application was usually more obvious: missing paperwork, vague employment details, poor references or unexplained gaps.

Now it is different.

Technology has made it easier to create documents that look credible. Fake payslips, altered bank statements, false employer references and misleading landlord references can all appear convincing at first glance.

That is why “the paperwork looks fine” is not enough.

The question is: has it been properly verified?

 

Why basic referencing is no longer enough

Referencing is not admin. It is risk management.

A proper tenant assessment should include:

• ID verification
• Right to Rent checks
• full affordability assessment
• employment verification
• credit history
• previous landlord reference
• bank account behaviour
• guarantor checks where needed
• rent protection eligibility

The strength is not in one document. It is in whether the whole application makes sense.

If the income, employment, bank activity and references do not line up, landlords should pause.

 

Open banking matters

Open banking has become an important part of modern referencing because it helps verify real financial behaviour.

It can show whether income is actually arriving, whether rent has been paid consistently, and whether the applicant’s financial picture supports what they are saying.

It is much harder to fake a pattern of banking activity than it is to produce a polished PDF.

An applicant refusing open banking checks without a sensible reason should be looked at carefully, especially if other parts of the application already raise questions.

Rent guarantee and legal expenses cover should be standard

In my view, rent guarantee and legal expenses cover should now be standard on every tenancy.

If a tenant stops paying or the tenancy goes badly wrong, landlords may face a slower and more expensive possession process. Rent protection helps protect income. Legal expenses cover can support the cost of dealing with possession or enforcement.

There is also another benefit: insurance-linked referencing adds discipline.

If an applicant cannot pass the referencing needed for rent guarantee cover, that does not automatically mean they are fraudulent — but it does mean the risk needs to be considered very carefully.

 

What recent fraud cases show us

The recent documentary “There’s a Gangster in My Flat” highlighted how serious things can become when criminals or professional rogue tenants gain access to rental property.

These are not ordinary tenant disputes. They can involve false identities, illegal occupation, criminal activity, serious damage and long battles to regain possession.

The lesson is simple: once the wrong person has the keys, the landlord’s position becomes much harder.

The screening stage is where landlords have the most control.

Direct-to-landlord platforms: convenience versus scrutiny

Online letting platforms can be useful, but landlords need to be realistic about the risk.

Where there is less professional scrutiny, fewer questions and no experienced third party checking the file, fraudsters may see an easier route in.

That does not mean every self-managed letting is unsafe. But if a landlord uses a direct platform and then cuts corners on referencing, the exposure is obvious.

Cheap letting is not cheap if it leads to arrears, fraud, damage or legal action.

 

Red flags landlords should not ignore

Watch carefully for:

• pressure to move in quickly
• incomplete documents
• vague employment details
• employer references from personal email addresses
• income that does not match the job role
• inconsistent bank statements
• unexplained large transfers
• refusal to complete open banking
• weak previous landlord references
• changing stories
• reluctance to provide a guarantor where affordability is tight

One red flag may have an explanation. Several together should slow everything down.

The Ashmore view: no keys until the file is clean

At Ashmore Residential, our view is simple: the tenancy file must be clean before the tenancy begins.

That means:

• referencing completed
• income verified
• ID checked
• Right to Rent completed
• landlord and employer references checked
• guarantor assessed where needed
• open banking reviewed where appropriate
• rent guarantee eligibility considered
• legal expenses cover considered
• tenancy paperwork properly issued

Only then should keys be released.

That may sound strict, but it is exactly the discipline landlords need now.

Final thoughts

Tenant fraud is becoming more sophisticated, and the legal landscape has changed.

Landlords can no longer rely on light checks, gut instinct or a friendly conversation. The stakes are too high.

The approach should be simple:

Reference properly.
Verify everything.
Use open banking where appropriate.
Insist on rent guarantee and legal expenses cover.
Do not rush the process.
Do not release keys until the file is complete.

This is not scaremongering. It is basic risk management.

 

Need help protecting your property before you hand over the keys?

If you are receiving strong interest on your rental property, that is the moment to be more selective — not more relaxed.

At Ashmore Residential, we help landlords separate strong applicants from risky ones using robust referencing, affordability checks, open banking where appropriate, rent guarantee options and legal expenses cover.

Before you hand over the keys, make sure the file is clean.

Call Ashmore Residential on 020 8366 9777 or email info@ashmoreresidential.com to arrange a landlord review.

For more landlord updates, short videos and practical property advice, follow what we are doing on social media:

Instagram: @ashmore.residential
Facebook: ashmoreresidential/oakwood