Beware of these common rental scams!
Category Rental Tips
The property scene is a forever-evolving beast that becomes even more competitive when the market lies squarely in the buyer's favour. This is especially true in the rental market, where many are simply tempted to sign the bottom line when they find the perfect spot.
Yet with an influx of renters clamming to find the right property, scammers and unsavoury individuals quickly take advantage of unsuspecting first-time applicants. We look closely at some more common scam types to prepare applicants against property scams.
New development scams
Known as the Development Dodge, this particular scam sees potential tenants arriving at the scene of a newly developed estate to inspect their completed units. The "agent" in question will come but claim the keys have been misplaced, so the only way to see the property is through the windows or to visit a similar unit still under construction.
You become excited by what you see and enter into a transfer process where you pay the deposit, pack your stuff and arrive at the property expecting to move in. But you discover that the unit was never available, and the "agent" with your deposit has simply vanished.
This scam is usually exclusive to new developments, so always be cautious when renting this type of property. One can easily claim to be from a reputable agency so call the google listed office number (not the one listed on their email) to clarify if they work there. Never sign the dotted line on property you haven't seen in person, and always double-check your property practitioner's credentials.
Property practitioners who fake their credentials
The scenario mentioned above may seem ridiculous to someone experienced in buying and selling property. We are always put at ease when we see official branding. However, it has become easier for scammers to fake their credentials and the agency they claim to represent.
Scammers want you to sign as quickly as possible. Potential homeowners may often be handed a pristine application form bearing the letterhead of a reputable agency and may remain non the wiser to a likely scam attempt. Be sure to look for possible signs where the so-called "agent" may claim that the property is in high demand, so you must act quickly.
The fact is that documentation and branded letterheads are no longer enough to confirm legitimacy. As stated before, ALWAYS double-check with the listed agency that the credentials given match agents on their system. If you suspect fraud, always use third-party sources to verify that the details are accurate and that you are calling the agency and not just another scammer.
Short-term rental scams
Dubbed The (un)Happy Holiday, short-term rental scams are frequent because they rely on the fact that you won't see the property until you arrive. You'll search for the property online, get in touch with the listed property practitioner, pay your deposit, and then arrive to see at least five or six other families booked in for the same property.
These scams are harder to recognise because most of the interactions are online. This means that doing your homework and double-checking is paramount. You'll want to find reviews of the listed property and as above, be sure to confirm all the details for the property with the listed agency.
Banking your deposit
Sometimes first-time renters will make the mistake of bypassing professional property practitioners and going straight to the landlord to sign a lease. You will sign a private lease and move in, but once the lease expires, you will find that the landlord has taken AND spent your deposit.
You may find no legal route to receive your deposit without the proper backing and paperwork. This is why seeking the professional guidance of a property practitioner registered with the PPRA is crucial. They have the legal obligation to ensure proper compensation should a landlord fail to meet their obligations.
This isn't only important to avoid scams but also to ensure that legitimate landlords meet every obligation stated in the lease and allows you the option of third-party arbitration should something go awry.
Homes of Distinction agents will always ensure that your legal rights are met. If you believe you are being scammed or a property practitioner is engaging in unethical conduct, get in touch with the Property Practitioner's Regulatory Authority.
Thinking of renting within Johannesburg's prestigious Northern Suburbs? Our doors are always open! Visit our website https://www.homesofdistinction.co.za/agents/ or pop by our offices for a chat. Our friendly property practitioners are always available to assist in any regard.
Homes of Distinction CC holds a Fidelity Fund Certificate issued by the Property Practitioners Regulatory Authority.
Author: Bryce Anderson
