If you haven’t been a victim of a scam it’s probably easy to say you’d never fall for one – but scammers are very skilled at taking advantage of people, especially those who find themselves desperately looking for a rental home.
A very common scam happening on platforms such as marketplace and rental groups – Scammers using legitimate photos of rental properties listed by estate agencies to trick unknowing tenants into paying them large sums of money as security deposits & upfront rental.
Scammers even go as far as posing as owners of properties which are currently available through agencies, sending prospective tenants to view the properties during open viewings hosted by the agencies with the instructions of not informing the property managers that they’re talking to the supposed owner. Once the prospective tenant has viewed the property the scammer says they’ll rent it out directly to the tenant at a reduced price because there’s no commission involved. So on the surface it all makes sense and sounds genuine – there’s a property available, you as a prospective tenant has viewed it, there’s a landlord who’s being a bit cheeky by trying to go around the property manager, but you may think that it’s ok as you’re getting a reduced rental and saving money by renting directly with the landlord, so you pay the bond and upfront rental over to the landlord, potentially even give notice at your current rental – only to find out a few days or weeks later that you’ve been scammed for thousands and you and your family have to move out because you’ve given notice at your current rental.
This will likely cause any victim severe financial harm, so hopefully this short article will shed some light on these scams and potentially save you from falling for one.
Here are a few Red Flags to look for on marketplace adverts and the poster themselves:
This is almost certainly a scam. The scammer could be anywhere in the world which could significantly reduce your chances of getting your money back. Making payments to a local bank account where the account number and details can be tracked is safer (Although this still does not guarantee it’s not a scam).
Scammers will often use pressure tactics and try get you to make payment before you have a chance to think about the situation. They will say things like “There is a lot of interest in the property” & “The first person who pays the deposit will secure it”. Don’t fall for this, always take enough time to evaluate the situation and look for other signs to determine if it may be a scam.
Take a moment to have a look at who’s listing the property and their other listings.
Does the account look genuine or is it a new account or an account with very few details? Have a look at other listings they may have posted, often scammers will post multiple properties for rent and in various areas far away from each other.
These signs should raise red flags as the odds are low that a genuine person having multiple properties to rent in various far away locations.
Another sign to look out for is when they tell you to not inform the property manager that you’re talking to them. Even if there was a small chance that you are talking with the real owner, it’s also an unethical thing for them to be doing. If an owner is willing to do the property manager out of their fees, chances are they may also be willing to take advantage of you as a tenant – so protect yourself and your money by going through the correct channels if the property is listed with an agency.
Reputable Agencies generally don’t advertise on marketplace. So when viewing a property, inform the property manager that you’ve seen it on marketplace and let the property manager advise you accordingly. Don’t feel shy or intimidated to speak with the property manager, a good manager will be willing to provide you with a professional service and shouldn’t get annoyed with you.
Besides, what’s worse – a slightly annoyed property manager or being scammed out of a lot of money?
I hope this has been informative and provided you with some insight on how to identify some scams and how to avoid falling victim to one. Remember, good property professionals are there to help you with your property needs, even if there’s no business in it, so don’t hesitate to reach out to your trusted property advisor for help. And if you don’t already have one, feel free to reach out to me.
Licensed REAA 2008 Real Estate Salesperson at Barfoot & Thompson Ellerslie.
Thank you for reading my article.
If you're in the Auckland area and would like to seek real estate advice or discuss your real estate needs, please feel free to get in touch with me today.
Thank you for reading my article.
If you're in the Auckland area and would like to seek real estate advice or discuss your real estate needs, please feel free to get in touch with me today.
Owning a home is a keystone of wealth… both financial affluence and emotional security.
Suze Orman