Renters, be aware of these scams during your search
Category General News
On the rental property search, you've found one that has you screaming "jackpot". The images are popping. The features tick every box, all within your budget. And the person you've contacted is only too happy to take your deposit. But, there's a lingering feeling that something just isn't quite right. Trust your instincts!
A growing rental property market and tough economic climate are bringing more rental scammers out of the woodwork. As an enthusiastic renter, you are more susceptible to fraudulent activity. Here are some common rental scams and ways to avoid falling for a slick one. Instead, you can ensure your property journey is a pleasant one that ends with a happy story and not a Carte Blanche special.
Watch out for these rental scams
In a competitive real estate market, scammers have become more innovative and determined to take advantage of aspiring tenants. Here are some situations to be wary of:
Bogus property practitioner: This individual will present themselves as a property practitioner but set off warning signals they are anything but. They may avoid showing you properties physically, skip meeting you in person, and try to secure a deposit without doing a screening.
Fake online listing: The scamming website or practitioner will intrigue you with images of a beautiful property and description with an offer-you-can't-miss type pricing. However, these are often taken from legitimate websites. Sometimes the listings may even be cobbled together poorly with spelling and factual errors.
Fake property: You visit a property and are prompted to sign a lease agreement quickly as there's a lot of interest in the property. You sign on the dotted line and pay your rental deposit only to find the 'practitioner' has disappeared without a trace.
Disappearing deposit: After securing your dream rental, you sign a private lease agreement. Your landlord asks for you to pay your deposit in cash. After taking it, they spend it. And when you move out, they don't refund your money and insist this was never paid.
How to avoid rental scams
Although rental scammers have become smarter, there are plenty of ways to help you catch on and prevent you from falling victim to their tricks.
Browse trusted agency websites: Websites like RentUncle have made the news for scamming home-seekers. You should google new websites to see what people are saying about them. Scammers can also use legitimate property portal sites, so do your homework. If the price seems too good to be true, it probably is. To identify a false listing, check other properties in the area to see what the general price should be.
Verify your practitioner: Legitimate and registered property practitioners all have a fidelity fund certificate number you can access on the Property Practitioners Regulatory Authority's website. Also, watch out for warning signals such as a personal email address (versus a company email address), requests for upfront payments (especially in cash), and pressure placed on you to make quick decisions or lose out on the property.
Double-check your landlord: You should request the utility bill to see who the registered homeowner is and even see if all the utilities have been paid up to date. This ensures you won't have to deal with cuts from the municipality for non-payments on the accounts. If there is hesitation to provide this information, it's another warning sign you might be dealing with a scammer. Alternatively, you can also check in with the neighbours to confirm the landlord as well as the neighbourhood's appeal in general.
Know the correct process: If your practitioner or landlord expects you to pay a deposit based on website images or an exterior viewing of the property, these are signs of a scam. Scammers will also overlook important parts of the tenant screening process such as doing a credit check and calling your references to ensure you are a good tenant. Instead, they will focus on securing a speedy payment.
Think before you ink: Before signing a lease agreement, have a legal representative look over the contract. Signs of grammatical errors and copied-and-pasted legalese can be easy to spot in a fake lease agreement.
Work with an agency you trust
Above all, you can protect yourself by partnering with a business that has a respected name in the industry. Kellaprince Properties takes pride in helping those on the rental search find homes safely and quickly. All our property practitioners are registered with the PPRA and abide by codes of conduct to ensure you have a smooth real estate journey. View our properties to let and reach out at your convenience.
Author: Kellaprince Properties