Searching for a new home online can be quite convenient; however, it also allows for rental scams to abound. These swindlers put their victims in a catch-22: Both landlords and tenants are potential targets. They trick you out of your deposits or then steal their personal information. Stay ahead of the criminals with this guide on common property scams, so you do not lose your money.
Free-Listing Website Rental Scam
This generalised rental scam targets people looking for homes from afar.
Scammers would place free classified listing sites, append bogus credentials to appear professionally, and ask for a deposit before the prospective renter even made the trip. Upon arriving at the designated address, they would find lessor missing and lessor brother property to be rented.
How to stay safe
Do not pay a rental deposit before conducting a legitimate private or trusted virtual viewing.
If possible, verify the identity of the advertiser through various official channels such as property records before transferring any money.
Fake Property Viewing Rental Scam
This dreadful-pitch fake-property scam steps a notch higher; the criminals will gain access to an empty building, show it to an unsuspecting tenant, and then collect deposits from him or her. By the day the victim was supposed to move in, the real owner or another occupant would have already been there.
Protective measures
- The con calls for immediate payment from a so-called landlord-therefore beware.
- Ensure that you cross-check ownership of the property using an official land-registry search.
Unsatisfactory References Scam
When it comes to the tenant deposit scam, everything would appear to be perfectly genuine until reference checks are done. For example, in the rental agreement, it may say that should the references fail to check out, only part of the deposit would be returned. The scammer deliberately never accepts your references and thus holds on to a large "reference fee."
Protection against such scams:
An abnormally high "reference fee" should be rejected.
Have an interested party check out the contract.
Guarantor Exploitation Rental Scam
Some of those stupid landlords skip the deposit and instead ask for a guarantor. At the termination of the lease, they send bogus charges for repairs to the guarantor, thus victimizing him.
Safety steps
Always request a full check-in and check-out inventory.
Make sure the guarantor agreement limits liability to genuine damages.
Illegal Charges and Hidden Fees
Unprincipled or crooked landowners at times might add illegal tenancy charges in the contract or add it at a later stage. If you sign this without reviewing, you would be agreeing to pay charges that are in fact illegal.
Avoid this swindle:
Read every clause carefully, and research if a fee can legally be charged.
Remember: if it's not in the signed agreement, you don't have to pay.
Overpayment Scam Against Landlords
Landlords scams happen too. One might have a "tenant" who purposely sends a fraudulent bank deposit: he will "accidentally" deposit more than the agreed amount, and later demand the extra back. Then the original deposit would bounce, leaving the landlord on the hook.
Tips to prevent this
Refuse to give back a refund until the first payment has cleared in entirety.
Ask for payments to be made via secure and traceable means.
Key Warning Signs of a Rental Scam
Some warning signs to look for in any rental listing include
- Free classified ads with little to no verification
- Multiple ads using the same photos or slightly different descriptions
- Bad grammar or strange descriptions of “perfect, trustworthy landlord” stuff
- Leasing prices that are unbelievably cheap compared with similar properties
- Some pressurized action to get you to wire the deposit transfer
- Photos that appear to be fake or do not match the property
- Requests for money before you even see the property]
Final Word on Avoiding Rental Scams
Rental scams will trap even those being cautious tenants and landlords; awareness is your best defence.
Require a proper viewing always, make sure you verify identity, and read through every line of the contract.
If it smells of something suspicious, you better walk away. Your dream property is never worth losing all your savings.
