The rise in rents and a shortage of affordable property have led to a buoyant, but often illegal sub-letting market, according to LetRisks.

As part of a drive to crack down on tenancy fraud Oxford Council recently warned council tenants who were illegally subletting their homes, to hand back the keys to the properties during a two month-long amnesty, or risk prosecution for fraud.

Michael Portman, Managing Director of LetRisks said: “Although the problem is more prevalent in the social housing sector, it is a risk for private landlords. When there is multiple occupancy in a property, the wear and tear and damage is dramatically accelerated, which is a big problem for landlords and agents. Very often, the obvious damage to the property are iron burns on carpets; cigarette burns; heat damage to polished wooden furniture; scuffs, marks and dents to walls; stiletto heel imprints on wooden floors and vinyl. 

“There can also be considerably more mould and condensation with more occupants.  Landlords can also face expensive repairs for damage and redecoration costs, to bring the property up to the standard it was at check-in.

“Illegal subletting falls under tenant fraud and it’s undoubtedly a growing problem. Renting a property makes landlords vulnerable to fraud. Hence it is vital that landlords and agents carry out thorough pre-letting checks. The purpose of referencing a tenant is threefold - to check the person is who they say they are; that they can afford the rent; and that they have honoured past commitments. Information collected on the tenancy application can be used to trace them, should they abscond, or leave owing money. In addition, should the applicant make false statements, this document provides evidence for eviction.”

LetRisks has put together some tips on what evidence to look for if you are suspicious that a tenant is subletting:

• Remember it pays to make regular checks on the property – every 3-6 months is advisable
• The tenants will be hiding evidence of extra tenants, so look out for additional clothing and shoes; excessive rubbish for the number of registered tenants; additional bedding like sleeping bags and pillows; suitcases and rucksacks; and extra toothbrushes
• Before taking on a new tenant, make sure you carry out a thorough reference to ensure you know who your tenant is