BBC Panorama investigates criminal tenant fraud

Landlords can face months of legal action and heavy costs when criminals secure their properties using false identities and references, a BBC investigation will reveal tonight.

The Panorama investigation examines how gangs have obtained homes through reputable letting agencies before using them for a drugs factory, a brothel or unlawful subletting.

Panorama: There’s a Gangster in My Flat, presented by reporter Hazel Martin, speaks to landlords who believed standard tenancy checks had been carried out before handing over the keys.

In one case, a home was turned into a drugs factory.

Another was used as a brothel, while a third property was illegally sublet and ransacked.

The programme also considers why those responsible can avoid prosecution even when there appears to be evidence that a property is being used for criminal activity.

Dealing with rental fraud

Landlords may then be left to pursue possession through the civil courts, a process which can take months and add substantial legal costs.

Paul Shamplina, founder of Landlord Action, supplied case studies for the investigation and appears in the programme as an expert contributor.

He said: “These are not simply cases of tenants falling into arrears or breaching the terms of a tenancy.

“Rental fraud can involve fake tenants using false documents to secure properties, as well as people posing as landlords or letting agents to collect rent and deposits for properties they do not own.”

Mr Shamplina added: “We also see professional rogue tenants moving from one property to another, using false identities and references and leaving landlords with significant rent arrears and legal costs.”

Criminal accessing landlord homes

He continued: “The cases featured in this programme show the devastating consequences landlords can face when criminals gain access to rental properties.

“When the truth emerges, the landlord can find themselves caught between the criminal justice system and the civil possession process.

“In my experience, reports of suspected rental fraud are not always acted upon, with some treated as civil disputes.”

Mr Shamplina said: “Meanwhile, the landlord can still face months of legal proceedings before they are able to take back control.”

He went on to warn that tenant referencing could not remove every danger and said landlords and agents needed to remain watchful after a tenancy had begun.

Landlords must be alert

Mr Shamplina said: “Referencing alone cannot eliminate every risk. Landlords and agents must remain alert throughout the tenancy and act quickly if they suspect a property is being sublet or used for criminal purposes.

“Once criminals have gained control of a property, recovering it can be an extremely difficult, lengthy and costly process.”

He added: “Panorama shines an important light on what is happening and the devastating impact it can have on the property owners involved.”

Mr Shamplina will also appear on TalkTV at 3.30pm today to discuss tenant fraud and the risks facing property owners and agents.

Panorama: There’s a Gangster in My Flat will be shown at 8pm on BBC One and will also be available on BBC iPlayer.

For help and advice about tenant eviction and collecting arrears, then Landlord Action may be able to help: