Hundreds of letting agents have reported finding ‘ghost tenants’ living in
rented properties when inspections have been carried out and a leading insurer
believes that there could be as many as 3.3 million unauthorised people living
in buy to let homes without landlords’ knowledge.
Where Do Ghost Tenants Come From?
Ghost tenants fall into many different categories. They are often friends who
come to stay and then don’t move out, particularly in the case of student
lets. Another scenario is when a relationship becomes more serious and the
tenant invites his or her lover to move in, only they don’t bother letting the
landlord know. Unfortunately, extra tenants can cause all kinds of problems,
legal and otherwise.
Problems Caused by Ghost Tenants
There are many issues created when ghost tenants take up residence in a rental
property.
- Changed legal status – extra tenants living in a rental property covering three or more floors could inadvertently turn it into an HMO, which may require a landlord to apply for an HMO license.
- Invalid insurance – ghost tenants not listed on a tenancy agreement will invalidate a landlord’s insurance policy.
- Damage to property – extra tenants crammed into a small property will inevitably cause more wear and tear on the fixtures and fittings, particularly if rooms are converted into bedrooms without permission.
Make Regular Property Inspections
Always check your rental properties regularly and look out for signs of extra
tenants in occupation such as mattresses on the floor or complaints from the
neighbours about extra people coming and going from the property. It is also
advisable to insert a ‘no sub-letting’ clause into your tenancy agreements.
