Property visits can protect landlords and agents from subletting scams
By |Published On: 21st November 2019|

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Property visits can protect landlords and agents from subletting scams

By |Published On: 21st November 2019|

This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.

Do you visit your property regularly? Regular visits can help to protect landlords and letting agents from the growing risk of subletting scams, according to No Letting Go.

The inventory provider service has stated that a professionally compiled inventory and commitment to the check-out process can also help to provide financial cover in the event of property damage.

Subletting scams are on the rise

No Letting Go has noticed a rise in the number of subletting scams in recent months. In particular, fraudsters have been using short-term let platforms to rent out their landlord’s properties without permission.

BBC One’s recent Inside Out programme, focused on lettings in London, saw a manging agent discover a family being checked into a rental property by the existing tenants.

The agent undertook further research, uncovering that this was a long-running subletting scam. There were over 70 reviews of the property left on Airbnb over the course of the tenancy.

The tenants were eventually evicted but not before they had cost the landlord a significant amount of stress and money in repairing the damage done to the property.

Nick Lyons, CEO and Founder of No Letting Go comments: “The growth of the short-term lets market heightens the risk of unlawful subletting as the available technology makes it easy for tenants to let properties quickly and easily without the knowledge of landlords and letting agents.

“If you don’t put the right steps in place, subletting could be taking place in your rental property for a long period before you are able to take any action.”

What problems can subletting pose?

When a tenant sublets a property unlawfully, this can create serious issues for landlords. It causes a heightened risk of property damage and abnormal levels of wear and tear. Illegal subletting could also invalidate a landlord’s insurance policy.

Subletting can also breach licensing schemes and a number of health and safety regulations which could cause a further headache for landlords and agents.

Lyons explains: “Subletting could cost landlords thousands of pounds of a long period of time. As well as the repair and maintenance costs to consider, there is also the increased chance of costly void periods while the property is being brought back to a lettable condition.

“What’s more, if you are forced to evict a tenant due to subletting, it could be costly and time-consuming to repossess the property through the courts. This issue could be further exacerbated by the government’s plans to scrap the Section 21 evictions process.”

How can property visits and inventories reduce risk?

The risk of subletting will never completely disappear and it has become easier for tenants to let properties with the rise of short-let platforms. However, there are steps that agents and landlords can take to minimise chances of falling victim to such a scam.

Lyon says: “Regular property visits and inspections can help to identify the tell-tale signs of subletting such as additional rubbish and the presence of people not named on the tenancy agreement.

“By scheduling regular visits, you will discourage tenants from subletting and in the event that they are carrying out unlawful activity, you can bring a stop to it as soon as possible.”

“Professional inventories and carrying out the check-out process properly can also offer additional protection.”

“If tenants have been subletting a property, the presence of an inventory can provide the required evidence for landlords to recoup some of the property damage and maintenance costs from the tenant’s security deposit.”

About the Author: Em Morley (she/they)

Em is the Content Marketing Manager for Just Landlords, with over five years of experience writing for insurance and property websites. Together with the knowledge and expertise of the Just Landlords underwriting team, Em aims to provide those in the property industry with helpful resources. When she’s not at her computer researching and writing property and insurance guides, you’ll find her exploring the British countryside, searching for geocaches.

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