Renting a property is a significant milestone for many reasons. But, while finding the perfect rental is exciting, it’s essential to remain vigilant against potential scams that target unsuspecting tenants.
The demand for rental properties has been fierce in recent years. As a result, rental property scams have become increasingly common, preying on the emotions, trust, and eagerness of those searching for their new home. Understanding scammers' tactics and identifying red flags can help renters protect themselves from falling victim to fraudulent schemes.
According to Jaime Pratt, Head of PM at VPM, one of the most common rental scams involves fake online or social media listings. “Scammers often use stolen photos and property details to create convincing listings for properties that don’t exist or are unavailable for rent,” she explains. “Unsuspecting renters may be enticed by the attractive features and very low rent prices, only to discover that the property is non-existent or already occupied by legitimate tenants.”
Another scam targets renters who cannot physically view the property due to distance, timing or travel restrictions. Scammers posing as landlords or property managers may claim to be overseas or out of town and will say the renter can secure the rental by making remote transactions, such as wire transfers or online payments. By not conducting a thorough background check or viewing the property in person, renters risk sending money to fraudulent individuals and losing it without any recourse.
Jaime explains that other rental scams involve identity theft. “Scammers pose as legitimate landlords and request sensitive personal information from prospective tenants, such as copies of driver's licences, passports or bank account details. This information can then be used for identity fraud and financial theft, putting renters at risk of significant harm and financial loss.”
To protect yourself from falling victim to rental property scams, you must exercise caution and conduct due diligence when searching for a rental property. Here are some tips to help you avoid rental scams:
Thoroughly research the property
Jaime advises verifying the legitimacy of the rental listing by researching the property address, contacting local real estate agencies, or visiting the neighbourhood in person. You can also enter the address into an online map search and check the web results to see if the property actually exists.
Insist on viewing the property in person
Always view the property first-hand before committing to a rental agreement. Jaime says you should always be wary of landlords or property managers who refuse to allow physical inspections or provide vague or repeated excuses as to why you can’t view the property in person. “A legitimate property manager will always insist on a physical viewing, so find a friend who can visit on your behalf if you can’t get there, or see if you can arrange a live virtual inspection.”
Verify the Landlord’s identity
Before sharing personal information or making any payments, ask the landlord or property manager for proof of identity and ownership. Be cautious of individuals who are unwilling to provide verifiable credentials.
Avoid making any remote financial transactions
Only send money or make payments for a rental property after first viewing it and meeting the landlord or property manager in person. Also, be sceptical of requests for wire transfers or online payments, especially from individuals claiming to be overseas.
Trust your instincts
It goes without saying that if something seems too good to be true, it generally is. “If you feel uncomfortable with the rental arrangement, trust your instincts and proceed cautiously,” Jaime warns. “Don’t hesitate to walk away from any transaction that raises any suspicions or doubts. There will always be another property.”
As a renter, if you remain on guard and proactively verify the legitimacy of rental listings and landlords, you can protect yourself from falling victim to rental property scams. A little caution goes a long way in ensuring a safe and secure rental experience. If you’re considering renting a property and would like some validation, touch base with one of our expert property managers, who can put your mind at ease before it’s too late.
