As a landlord, you want to ensure that your property is in safe hands. However, manually verifying tenant identities can leave you vulnerable to fraud and compliance fines. Here’s how our referencing agency, Goodlord’s Identity Document Validation Technology (IDVT) can protect you.
The Rising Threat of Tenancy Fraud
Landlords in the UK are facing a double threat: rising tenancy fraud and stricter compliance rules. Fraudulent rental applications shot up by 140% last year, with forged documents becoming so sophisticated they’re almost impossible to spot by sight. Miss just one, and you risk placing an unreliable tenant in your property. And with the Renters’ Right Bill set to cause serious eviction delays, removing them won’t be easy.
At the same time, the pressure to stay compliant is mounting. Fines for right to rent breaches surged by 577% in early 2024, with penalties reaching up to £10,000 per occupier, even for first-time offences.
What is IDVT?
Government-approved Identity Document Validation Technology (IDVT) digitally verifies tenant ID. IDVT uses a range of advanced digital checks to detect fraud and ensure authenticity, including:
- Biometric checks: Using facial recognition to verify that a tenant’s features match their identity documents.
- Digital right to rent checks: Allowing prospective tenants to complete checks remotely.
- Visual analysis and liveness checks: Ensuring that the person completing the check is real and present.
- Amberhill check: Cross-referencing with the national police database to flag stolen, lost, or fraudulent documents.
- NFC checks: Reading passport chip data via a mobile to instantly confirm the document’s authenticity.
By combining these technologies, IDVT offers a faster, safer, and more reliable way to verify a tenant’s identity, helping you stay compliant while offering a smoother experience for tenants.
Manual Checks vs IDVT: What’s the Difference?
Manual checks rely heavily on an “eye test,” placing responsibility on agents/landlords to decide whether an ID is legitimate. This method is prone to human error, lacks real-time verification, and increases administrative burdens. In contrast, IDVT automates the validation of identity documents, reducing the risk of fraud and ensuring compliance with legal requirements.
Where Does IDVT Fit into the Tenant Referencing Process?
While IDVT automatically verifies tenants’ identity documents, it’s only one part of the tenant referencing process. To properly assess a tenant’s suitability, you need to carry out a full range of referencing checks, including:
- Identity verification: Confirming that the applicant is who they say they are.
- Credit checks: Reviewing a tenant’s financial history.
- Residential checks: Gathering feedback from previous landlords.
- Income verification: Confirming the tenant’s employment and earnings.
- Sanctions checks: Screening tenants against the government-imposed sanctions list.
Choosing Your IDVT Provider
When selecting an IDVT provider, consider the following:
- Understand Your Needs: Determine whether you need technology for right to rent verification or full tenant referencing.
- Confirm Certification: Ensure your provider is certified under the government’s Digital Identity and Attributes Trust Framework (DIATF).
- Get Transparent Pricing: Ask for a detailed cost breakdown and check for hidden fees.
- Check Customer Support: Ensure the provider offers reliable UK-based support.
Conclusion: Going Beyond IDVT with Homefinders
At Homefinders, we offer more than just ID verification. Our tenant referencing service is seamless and end-to-end, including identity, credit, residential history, and income checks. Partnered with a government-certified IDSP, we ensure secure and compliant referencing, backed by our referencing company, Goodlord.