Tech uncovers tenant’s attempt to cheat £ 164,000 to rent luxury apartment
Proptech Homeppl saved a buy-sell customer (BTR) over £ 160,000 after foiling a fraudulent rental application for a luxury apartment in London.
The tenant due diligence and guarantee company reports that its client was targeted by a potential tenant in the United States who applied for a 24-month lease for a three-bedroom apartment in east London with a value contract total of almost £ 164,000.
But Homeppl’s proprietary technology identified gaps in the app by scanning numerous data points and documents, which raised red flags. Further investigations found that the same person had previously been convicted of fraud outside the UK.
The company says illegal subletting and other financial crimes in the BTR industry are rife, with a 364% increase in fraudulent rental applications reported in the past six months. Premium properties are an easy target as they don’t require a deposit and – due to the existing SEO process of many BTR owners – applicants only need to go through one identity verification before being approved. .
Samantha byars, Account Manager at Homeppl, says customers know it is absolutely essential that they put in place strong and rigorous measures to identify this activity and prevent fraudsters from gaining access to their apartments, not only to protect the business against huge losses, but also to protect their value and honest tenants.
CEO Alexander Siedes (photo) adds: “The sector is increasingly targeted, which means that high-end BTR apartments in the capital are extremely attractive to fraudsters looking for an apartment in which they can under – illegally renting out or carrying out illegal activities. Companies dealing with these developments should ensure that they have procedures in place to identify these issues and stop them. “