10-fold rise in tenancy fraud triggers new guarantor service

A PropTech provider has launched a renter guarantor service after claiming there’s been a 10-fold rise in tenancy fraud in the past year alone.

Homeppl says tenancy fraud and the demand for guarantees from letting agents, landlords and Build to Rent properties has dramatically increased, driven largely by an increased need to rent due to rising house prices and shortage of housing. 

The latest data from Homeppl claims a sharp rise in tenancy fraud from 2020 and particularly at the start of this year with a 75 per cent increase in tenancy fraud from January to February. 

The two most common types of tenancy fraud include creating fake financial documents and falsifying employment references. 

Homeppl says it developed its new product to use a blend of Open Banking, Machine Learning, instant decision engine, fraud detection tools and behavioural analysis, to offer rental guarantees.

It claims its Guarantid product offers instant payout for rent in default. For letting agents, landlords and BTR properties, the service offers same day payments and covers any rent amount.

Homeppl chief executive Alexander Siedes says: “After the success of our consumer service, it became abundantly clear there was an increasingly acute need for a product of its type for businesses as growing fraud makes it harder to onboard tenants.

“By giving both consumers and businesses the ability to rent, when they may otherwise have struggled to, we’re well on our way to achieving our mission of creating financial inclusion for all.

“And at the same time, we’ve made the crucial step of bringing our two brands - Homeppl and Guarantid - together to underscore this mission. This will see both the brands merging to come under one umbrella of Homeppl.”

Homeppl previously focused on preventing rental fraud and qualifying tenants, working with letting agencies, online marketplaces and Build to Rent Companies, while Guarantid licensed Homeppl’s technology to offer rental guarantees to people who require guarantors. Now, the two offerings will both fall under the Homeppl brand.