A Landlord’s Practical Guide to Preventing Fraud

Fraud is a real threat in the property world  and for landlords navigating a fast-changing market, the financial and legal implications can be serious. From criminals impersonating landlords to fake agents and tenants with forged credentials, fraud tactics are growing more sophisticated every year.

At Personal Economy Lettings, we believe the best protection for your portfolio is awareness and good process. Below, we break down the most common types of fraud landlords face and practical steps you can take to reduce your risk. 

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Why Fraud Matters for Landlords

With major changes like the Renters’ Rights Act, Making Tax Digital, and new EPC requirements rolling out, landlords already have a lot to manage. But fraud doesn’t wait  and failing to spot it early can cost time, money, and peace of mind.

Criminals are using digital tools and identity theft to target landlords directly, from clever impersonation to property hijacking and even genuine tenants can be caught up in scams. 

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1. Property Ownership / “Hijacking” Fraud

What It Is

Sometimes called “property hijacking,” this occurs when someone impersonates the owner of a property and tries to sell it, remortgage it, or transfer the title without permission. 

This risk is higher if a property’s registered title lists the rental address rather than the landlord’s home or company address because identity checks can be weaker when the owner’s contact details aren’t clear. 

How to Reduce the Risk

• Update your address for service:
Ensure the title uses your actual contact details or your company’s registered office, not the property address. It’s a simple change that can make a big difference. 

• Sign up for Property Alerts:
HM Land Registry’s free alert service notifies you if changes are lodged against a property. 

• Add a title restriction:
A restriction stops sales or mortgages being registered unless proper identity checks are completed, including by a solicitor. 

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2. Rental Service / Letting Agent Fraud

What It Is

Rental fraud can happen when criminals pose as legitimate letting agents or landlords. They might advertise properties that aren’t theirs, take deposits and rent upfront, and then disappear — leaving tenants out of pocket and landlords exposed. The Mortgage Works

Landlords can also fall victim by engaging with fake or rogue agents, handing over keys without the proper protections like deposit schemes or contractual safeguards. The Mortgage Works

How to Reduce the Risk

• Research the agent:
Check company details (including Companies House), website domain names, and whether contact details are corporate rather than generic (like Gmail). 

• Check industry registrations:
Genuine agents will belong to recognised redress schemes (e.g., The Property Ombudsman or Property Redress Scheme) and hold valid Client Money Protection (CMP). 

• Visit in person:
A legitimate agent should be happy to meet you at a professional office address. 

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3. Tenant Identity & Reference Fraud

What It Is

Professional fraudsters can use fake identities, forged payslips, and invented rental references to secure tenancies. Some go further, orchestrating criminal activity or misusing properties once inside. 

How to Reduce the Risk

• Use professional referencing services:
These use tools like Open Banking to verify income and rental history directly, which makes it much harder to fake crucial information. 

• Don’t rely on PDFs:
Bank statements and documents saved as PDFs can be manipulated. Whenever possible, verify directly with the source. 

• Speak to referees directly:
If you contact referees yourself, especially previous landlords, you have a better chance of spotting inconsistencies. 

• Meet tenants in person:
Seeing someone face-to-face and asking direct questions creates a psychological barrier that many fraudsters avoid. 

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Final Thoughts: Verify Before You Trust

Fraud thrives where people take things at face value. The most effective defence isn’t fear it’s professionalism and process. Whether you manage one property or a large portfolio, adding a layer of verification and thoughtful checks will help keep your investment safe. 

If you’re ever unsure about a document, identity, agent, or prospective tenant, take your time, ask for additional proof, and when needed, seek professional advice. Prevention is always better than dealing with the fallout of fraud later.

If you’d like support putting the right checks and processes in place, we’re here to help calmly, clearly, and proactively.

Book a call with one of our team https://personaleconomypartners.com/landing/book-a-clarity-call

 

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