Today in France, according to EasyFileIn France, almost 1 in 2 people say they are prepared to falsify their rental application in order to obtain accommodation. The property market is tight and tenants are not hesitating to use false documents to increase their chances of getting a tenancy. How does tenancy file fraud work? What can be done about it? We'll give you the answers in this article.
What is tenancy fraud?
Tenancy file fraud is becoming increasingly widespread and has now become a scourge that estate agents must combat. What is tenancy file fraud?
When a candidate applies for a lease, they must submit a complete file including the following documents proof of identity but also its work situation and its revenues.
One of the main reasons why fraud is on the increase these days is digitisation. In the past, applications were submitted when the property was visited. Today, with widespread use of digital technologyAs a result, documents are now transmitted electronically rather than by hand.
Although copies of physical documents can also be subject to falsification, it is nonetheless important to be aware of the risks involved. easier to commit fraud directly onlineusing IT tools.
👀 Good to know :
THE government has set up a service, Easy Filewhich helps applicants put together their rental file by uploading the necessary supporting documents:
Identity document Proof of employment status Proof of accommodation Proof of income Tax notice
3 tips to avoid rental file fraud
Tip 1: Check the consistency of documents
To avoid being duped by a tenant, you need to check their creditworthiness. How do you do this? You need to ensure that the tenant's income is sufficient to rent the property and that all the documents provided are consistent. We'll tell you more in the rest of this article.
Monitoring the tenant's income
Tenants who falsify their rental application are often tempted to change their income. It is therefore essential to check that the amounts declared correlate, particularly on payslips.
To help you, here are a few points to pay particular attention to:
- Check that the cumulative salaries over the last three months is logical
- Keep an eye on the consistency between gross monthly income and gross annual income. To check this, multiply the gross monthly income by the total number of months, i.e. 12.
- Make sure that the amounts shown on the pay slip are consistent with those shown on the tax notice
What about the tax notice?
French people's tax notices are managed impots.gouv.fr.
To detect fraud in your rental file, you can consult the matching tax number present on the tax notice provided by the tenant and the one registered with the tax authorities.
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You can also find external databases. These provide data relating to the corporate identity of companies, such as their articles of association.
Tip 2: Ask the tenant directly
Although often not used due to lack of time, call the previous owner or the applicant's employer can be a good idea.
By contacting the former landlord, you can make sure that the candidate pays the rent on time and regularly. As far as the employer is concerned, it is quite possible to check that the candidate is actually employed by the company.
Tip 3: Use an anti-document fraud solution
The use of an antidocument fraud to combat fraud in rental files can be very interesting and even necessary.
Anti-fraud solutions are specially designed to detect forged documents, whether they be falsified pay slips, forged tax notices or other fraudulent supporting documents. They make it possible to save time and D'optimise controls !
They can also help you comply with legal requirements for checking tenants' documents.
At Finovox, we provide you with an anti-fraud solution, available in SaaS or API format.
This solution enables companies to spot andto analyse various forms of document fraud. Based on artificial intelligence, it analyses data structure, metadata and the consistency of information extracted from documents for precise and effective detection!
Interested? Contact our experts, they'll be delighted to help.
FAQs on rental file fraud
What risks do tenants face if they submit falsified documents?
French law severely punishes the transfer of falsified documents.
The fraudster runs the risk of being convicted of forgery. This entails a sentence imprisonment ranging from up to three years and a fine that can rise to around €45,000.
If the fraudster is prosecuted for fraud, the penalties are even more severe.
What is the estate agent's liability in the case of tenancy fraud?
In law, estate agents are said to act as drafters of deeds: they must ensure legal effectiveness. This also means that real estate agents can be held liable for professional negligence.
To do this, it must check :
- the quality and the capacity the various parties (vendor, lessor)
- There legal status of the property (consistency, essential characteristics, etc.)
- The consistency of property diagnostics (DPE, termites, etc.)
- There the tenant's solvency
Estate agents must prove that they have done everything possible to carry out their duties. To prove this, they must check the authenticity of the documents provided.
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