What should you do if a tenant provides a false payslip?

When letting out a property, it is only natural to want to ensure that the tenant will be able to pay the rent. This is why landlords often request proof of income. But what happens if the tenant provides a forged document?

Choosing a ‘solvent’ tenant

As a landlord, you have the right to choose your tenant, provided that you comply with certain rules (particularly those prohibiting discrimination). You may request proof of income, such as payslips, financial statements or any other evidence, to assess whether the applicant will be able to afford the rent. This remains lawful as long as it is done with due regard for privacy and is not excessive.

What if the payslip is forged?

A tenant may forge a payslip to appear more solvent. This is a genuine risk and, unfortunately, some landlords only discover the fraud later, when rent goes unpaid.

Fortunately, the courts recognise this type of conduct as “fraudulent misrepresentation” (in other words, deliberate deception). This means that the tenancy agreement was entered into on the basis of false information, which may allow it to be annulled.

What the case law says

A justice of the peace recently confirmed that providing a forged payslip could result in the tenancy agreement being annulled, even if the tenant has not yet accrued significant rent arrears. In other words, you do not have to wait for months of unpaid rent before taking action. The mere fact that you were deceived may be sufficient to ask a judge to terminate the tenancy agreement.

In practice: what should you do if you discover fraud?

1. Gather evidence: If you discover or suspect forgery, try to obtain confirmation from the employer or a competent authority.
2. Contact a lawyer or property professional: They can help you submit a claim to the court correctly.
3. Act quickly: Proceedings may be initiated even if the rent is still being paid, at least in part.
   

Advice for landlords

Although the situation is frustrating, it is important to follow the proper legal process. Providing a forged document is a serious matter, but only a judge can annul a tenancy agreement on this basis. In this type of case, it is better to prove the deception from the outset than to endure months of unpaid rent.

Key takeaway:

Providing a forged payslip constitutes fraud. As a landlord, you may seek to have the tenancy agreement annulled, even if the tenant is still “up to date” with their payments. This could save you a great deal of trouble.