Is my landlord reputable?
Finding private student accommodation in the UK can be difficult at the best of times, but with recent increases in tenancy fraud, finding a property is becoming even more difficult for students. 4,800 rental scams were reported by the public in 2021, costing the public £7million. It is more important than ever to protect yourself against rental fraudsters. Follow our guide to learn the most common types of student rental scams in the UK. As well as learning the right questions to ask to prevent yourself from falling victim to a scam, and to find out what to do if you are involved in a scam.
What to do if you think you’ve been scammed
The first thing to do if you’re worried you’ve been scammed is to keep communicating with your landlord. If there is a dispute regarding deposits or occupancy numbers, you may be able to solve this between the two of you first without engaging any legal bodies.
If you cannot solve the dispute, you can take action against the landlord through the small claims court, by complaining to the housing ombudsman or via legal action. Advice as to which action should be taken can be found at Shelter.
If you have been a victim of fraud through a rental scam, such as paying for a fake property, you can report the crime through ActionFraud, where you can find support and advice on how to proceed.
What kind of scams are happening to student renters?
Sadly, there are many ways in which rental scammers will target students, with new schemes coming to light all the time. Some of these common scams include:
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Fake landlords/properties
– in these rental scams, someone will pose as a landlord and sell you a property which they do not own. These scams have been exacerbated by Covid-19. This is due to it becoming commonplace for letting agents to offer virtual tours rather than in person viewings, which makes it easier for scammers to sell properties which they don’t have access to. Scammers may also offer tours of properties they do not own; in Edinburgh, scammers defrauded students of thousands by offering tours of a ‘rental property’, which in reality was an Airbnb. This shows the importance on really trusting if that accommodation is legit or not.
Deposit fraud
– this involves a landlord asking for more deposit than they are legally entitled to, not protecting the tenant’s deposit in a tenancy deposit scheme, or refusing to repay the deposit even if no damage to the property has been sustained. These rental scams often occur in a high-pressure environment, where students are pressured to transfer money without having time to properly review the necessary, legally-binding paperwork.
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Illegal subletting
– illegal subletting occurs when a tenant lets their room to another person without their landlord’s permission and in breach of their tenancy contract. For example, you might see a room advertised to let for just one month. It is important to ensure that the landlord is aware of the change in occupier, or else you could face difficulties such as eviction.
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Illegal letting and overcrowding
– this is where landlords rent rooms when they are not properly licensed to do so. For example, they may rent out a room which is legally too small to be classed as a separate dwelling and may not be covered in a licence (e.g. renting out six bedrooms in a house which can only legally be occupied by five individuals).
Questions to ask the landlord, and yourself
Signing a rental contract with a private landlord can be extremely daunting as you’ll be bombarded with paperwork and payment requests.
The most important tips for securing student accommodation are to take your time and trust your intuition – if something doesn’t feel right, it probably isn’t. Don’t feel rushed into making a decision; scammers like to do deals in high pressure environments to prevent you from making informed decisions.
Although student lettings are competitive, a reputable landlord should give you ample time to consider before signing a contract and transferring money.
1. Check the market rate and compare prices
The old adage states that if something seems too good to be true, it probably is. Check the rent on similar properties – scammers like to offer what looks like an amazing deal to attract more interest. If a property seems much too cheap, this could be an early warning sign.
2. View the property
Ask to view the property. This should help you to establish whether the property actually exists, and that the landlord has access to it. If you get the opportunity, speak to the current tenants and ask them for their experience of the landlord. This will give you an invaluable insight into the property and help you determine if the landlord is legitimate.
Property viewings were difficult during the pandemic, with many letting agents only providing photos and virtual tours for you to base your decision to rent off of. However, most agents are now returning to in person viewings.
Even if the landlord doesn’t formally provide an in-person viewing, you can still go and visit the property yourself to get a feel for location and condition, and possibly speak to the current tenants.
3. Land registry checks
You can also check that the person you are communicating with is the legal owner of the property through the government land registry.
This enables you to search for the property and identify the owner, so that you can check if your information matches up.
4. HMO Licence
Properties let to more than three tenants who share communal spaces require an HMO licence (House of Multiple Occupancy Licence). You can search your local council’s register of HMO licences, which provide details of the number of legal occupants for a property as well as the name of the landlord.
5. Check the deposit amount
Check that the landlord is not overcharging you for your deposit.
In the UK, landlords can legally only charge up to one week’s rent for a holding deposit, and five weeks rent for the damage deposit (up to six weeks if annual rent is over £50,000). If the landlord is asking for an illegally high deposit, this could be a sign of a scam.
6. Deposit protection
All landlords must enrol deposits in a government backed protection scheme.
These include ‘Deposit Protection Service’, ‘MyDeposits’ and ‘Tenancy Deposit Scheme’. These schemes are in place to make sure that contracts are upheld, and tenants are able to get their deposits back once the tenancy ends.
You can ask the landlord which scheme they will be enrolling your deposit in and can ask for proof of documentation when they have done so.
7. Don’t make payments in cash
Make sure that all payments to the landlord or letting agency are traceable, so if things do turn for the worst, you will have receipt of your payments which will improve your chances of recovering your money.
8. View the contract
Never settle for a verbal contract – all contracts must be written and signed by both the landlord and tenants. If the landlord fails to produce a contract, or gives you a contract full of mistakes, this may indicate that they do not have access to proper information about the property. Most student letting contracts are Assured Shorthold Tenancies, but the landlord may offer you a joint tenancy.
9. Check if your landlord/agent is part of a trade body
Landlords and letting agents who are members of a trade body agree to a set of working practices and standards. This may help you to identify more reputable and reliable organisations. Many landlords are members of the National Landlord Association (NLA) or Residential Landlord Association (RLA).
What to do if you think you’ve been scammed
The first thing to do if you’re worried you’ve been scammed is to keep communicating with your landlord. If there is a dispute regarding deposits or occupancy numbers, you may be able to solve this between the two of you first without engaging any legal bodies.
If you cannot solve the dispute, you can take action against the landlord through the small claims court, by complaining to the housing ombudsman or via legal action. Advice as to which action should be taken can be found at Shelter.
If you have been a victim of fraud through a rental scam, such as paying for a fake property, you can report the crime through ActionFraud, where you can find support and advice on how to proceed.
Be sure to check out Roome’s other blogs here too.