Nov

Regular property visits protect landlords from subletting scams

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Property Visits:

Leading
independent inventory provider, No
Letting Go, Says that
regular property visits are vital to protect landlords and
letting agents from various activities that tenants can get up to,
including the growing risk of subletting scams and cannabis growing.

Stressing the
importance of an independent and professionally compiled inventory to
protect the landlord’s interests, the UK’s largest provider of
inventory services also says that a commitment to the check-out
process helps to provide financial cover in the event of property
damage.

Reporting the
increasing incidence of subletting scams’ No Letting Go says
this occurs particularly when it comes to fraudsters with short-term
lets using popular on-line platforms to rent out their landlord’s
properties without permission.

Quoting a recent
example, which featured on BBC One’s Inside Out programme, the
company says that the programme saw a managing agent discover a
family being checked into a rental property by the existing tenants.
Further research into the matter uncovered a long-running subletting
scam going on with over 70 reviews of the landlord’s property left
on Airbnb.

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

Nick Lyons, CEO and
Founder of No Letting Go says:

“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?

Tenants subletting a
property unlawfully can cause serious issues for landlords. Not only
is there a heightened risk of property damage and abnormal levels of
wear and tear, but illegal subletting could 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.

Nick 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?

While the risk of
subletting will never completely disappear and has grown as it has
become easier for tenants to let properties via short-lets online
platforms, there are steps agents and landlords can take to minimise
the chances of falling victim to one of these scams.

“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,” adds Lyons.

“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,” Nick Lyons concludes.

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