Just 31% of letting agents are completely confident their tenant onboarding processes protect them against tenancy fraud, according to research from Propoly.
The study reveals 54% of agents have concerns about tenant fraud during onboarding, while 29% identify preventing fraud and verifying information as their biggest challenge.
An equal proportion say chasing prospective tenants for information and documentation presents the greatest difficulty.
The findings come as agents attempt to balance increasingly important identity and fraud checks with pressure from landlords and tenants to complete the onboarding process quickly.
REFERENCING CAUSES BIGGEST DELAYS
Tenant referencing emerges as the biggest source of delays, cited by 43% of letting agents surveyed.
Fewer than a third (31%) of agents complete the entire tenant onboarding process within three days.
Another 31% typically take between four and seven days, while 29% say onboarding takes between one and two weeks. For 6%, the process stretches beyond a fortnight.
Propoly says fragmented processes can increase administration as agents gather documentation, verify identities, conduct referencing and assess potential fraud risks across different systems.
TENANCY FRAUD CONCERNS GROW
The research comes against a backdrop of increasing concerns about fraud in the rental sector.
Separate figures reported in July show the estimated annual cost associated with tenancy fraud more than doubled between 2021 and 2025, rising from £7.2m to £14.5m.
Sim Sekhon (main picture, inset), Group CEO at Propoly, says: “Tenant onboarding has become a difficult balancing act for letting agents.
“They need to move quickly, because delays can frustrate landlords, tenants and agents alike, but they also need to be confident that the person they are onboarding is who they say they are and that the information they’ve provided can be trusted.
“The answer isn’t to choose between speed and security. Agents need a process that delivers both. If referencing, identity checks, fraud prevention and document collection are fragmented across different systems and rely heavily on chasing tenants, it’s inevitable that the process becomes slower and more difficult to manage.”
TECHNOLOGY ROLE
Propoly’s platform combines AI-based fraud document detection and identity checks with tenant referencing, open banking and payslip automation through connections to HMRC.
Sekhon adds: “Technology has a significant role to play here. At Propoly, we’ve built our onboarding process around making these essential checks faster and simpler, without compromising on the safeguards agents need.
“Fast AI anti-fraud and ID checks, combined with referencing, can give agents greater confidence while helping them get tenants through the process more efficiently.
“For agents, a good onboarding experience should ultimately mean less administration, fewer delays and greater certainty that the tenancy is progressing with the right tenant.”
