1 in 5 Landlords Experienced Fake References

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10,000 landlords being surveyed in a new research by Letting Protection Service (LPS) reported that almost 1 in 5 landlords had experienced or received fake references from all age of tenants.

It is believed that older tenants are more trustable than other age groups. However, Letting Protection Service (LPS), offering specialist insurance, referencing and protection products and services for landlords, reported that older tenants are not necessarily more honest. A new research done by LPS surveyed 10,000 landlords revealed 21% of them had received fake tenant references from prospective tenants aged 60 and above. It has emerged that a total of 43% landlords experienced this similar problem from tenants aged over 50 (see figures below).

landlord-experiencedSource: “Tenant Survey – Full Results” on www.lettingprotection.com

In comparison, 10,000 interviewed landlords reported that 42% similar incidence had occurred with prospective tenants of the group aged 17 to 29 and 40% of them encountered this problem with tenants aged 30 to 50, the most financial independent group. Even though the figures seem to be similar for all age groups, the chart above clearly removed the stereotypes of older tenants being more honest in the property market.

Research showed that tenants in any age groups would still try to fake their own references. And as a landlord, you do not want to intake dishonest tenants. In respond to this, it is essential for landlords to purchase rent guarantee insurance, with official tenant referencing being carried out, especially under this economic situation. This will provide landlords with better security and be protected safely to minimise the risk of rental arrears.

29th April 2009