The cost of renting to a rogue tenant is just shy £35,000 when you take into account lost rent, the cost of fixing damages and legal fees, identity verification checks provider Credas Technologies warned.
This will of course rise and fall depending on the price of rent, as in London for example the overall cost of a rogue tenant comes an estimated £41,000.
Rogue tenants typically occupy a property for up to nine months, costing landlords just under £10,000 in lost rental income, while legal fees around the eviction process amount to around £1,750.
If agents are involved they have to worry about reputational damage and loss of business if they make such a hash of selecting a tenant.
Tim Barnett, chief executive of Credas Technologies, said: “There is not a letting agent in the country who wants to let a rogue tenant occupy their client’s property and it remains one of the most time consuming, stress inducing and costly mishaps one can make.
“Unfortunately, we’re not talking about the occasional bad apple who refuses to pay their rent, we’re talking about professional criminal organisations. Organisations who utilise a property as a base for their own financial gain and criminal activity, while often leaving a wake of destruction in their path.
“Such organisations have constantly evolved to ensure they appear as legitimate as possible, with forged identities, references and financial histories and these fraudulent personas can be extremely hard to detect for those not professionally trained to flag them.
“While customer due diligence may be treated as a legally required box ticking exercise for some agents, it plays a vital role in the war against this illegal rental underworld and can prevent agents from incurring serious financial and reputational damage.”