Rental Scams: How to Protect Yourself Before You Pay
The Property Perspective is a weekly radio show on 919 FM, airing every Tuesday at 4:15 PM with Al and Lesedi on The Drive Train.
Episode 25 | The Property Perspective with Etchells & Young
Rental scams are becoming increasingly sophisticated, and simply viewing a property in person is no longer always enough to confirm that the person you are dealing with is legitimate.
In Episode 25 of The Property Perspective on 919 FM, Harry looks at the different ways tenants and landlords can be targeted, from cloned listings and fake agents to intercepted payment details and fraudulent tenant applications.
Most importantly, he explains the checks you should make before transferring any money.
In This Episode
Harry looks at how rental scams have evolved and why independently verifying the property, practitioner and payment details has become increasingly important.
Harry discusses:
How scammers clone legitimate rental listings
A scam involving a genuine agent and genuine property viewing
Why viewing the property is no longer enough
How to verify a property practitioner independently
Payment diversion and fraudulent bank details
The warning signs of pressure and artificial urgency
How landlords can be targeted by fraudulent tenants
Three checks to make before paying any money
Watch Episode 25
The Property Perspective airs weekly on 919 FM.
Rental Scams Are Becoming More Sophisticated
Rental scams are no longer limited to obviously fake listings or someone asking for money for a property that does not exist.
Criminals can copy legitimate property advertisements, reproduce company branding and create convincing social media and WhatsApp profiles.
This means that something can appear professional and legitimate while still being part of a carefully organised scam.
Even a Genuine Property Viewing Can Be Part of a Scam
Harry shares a recent example involving a legitimate Etchells & Young rental listing.
The scammer copied the property advertisement and attracted a prospective tenant through a fraudulent social media profile.
The scammer then posed as the tenant when communicating with the genuine Etchells & Young practitioner, while simultaneously pretending to be the practitioner when communicating with the real tenant.
A legitimate viewing was arranged and the genuine practitioner showed the tenant through the property.
After the viewing, the scammer contacted the tenant, claimed that the application had been approved and instructed him to pay the deposit, administration fee and first month's rent into a fraudulent bank account.
The tenant lost R51,000.
Viewing the Property Is Not Enough
Traditionally, physically viewing a property was one of the strongest ways to confirm that a rental advertisement was legitimate.
That remains important, but the scam described in this episode shows why it cannot be your only check.
When you meet the practitioner, confirm the telephone number you have been using and make sure it is actually theirs.
The practitioner should also confirm your contact details.
If the numbers do not match, stop the process and investigate before sending information or making any payment.
Other Rental Scams to Look Out For
Another common scam involves intercepted email communication.
Criminals identify that a property transaction is taking place and send convincing payment instructions containing their own bank details.
In other cases, scammers simply copy a legitimate property listing and replace the genuine practitioner's contact details with their own.
They may even arrange for prospective tenants to access the property through security or another third party so that the viewing appears legitimate.
Once the tenant is satisfied with the property, the scammer requests payment directly.
Be Careful When You Are Being Rushed
Artificial urgency is one of the warning signs discussed in the episode.
You may be told that several other people are interested, that your application has been approved and that whoever pays first will secure the property.
Do not allow pressure to replace proper verification.
A legitimate transaction should withstand reasonable checks before you transfer a deposit or first month's rental.
Verify the Practitioner Independently
Do not rely only on the telephone number or profile supplied in a social media advertisement.
Find the property company's official website independently and use the contact details published there.
Call the office and confirm that the practitioner actually works for the company and is dealing with the property you have viewed.
Property practitioners and property firms can also be checked through the Property Practitioners Regulatory Authority.
If the person claiming to be an agent cannot be independently verified, do not proceed.
Verify the Bank Account Before You Pay
A deposit and first month's rent can amount to tens of thousands of rand.
Before transferring that money, independently confirm the banking details.
Do not assume that an invoice is legitimate simply because the company logo, names and property information look correct.
Where possible, use your bank's account verification tools and confirm payment instructions directly with the agency using independently sourced contact details.
If banking details suddenly change during the transaction, verify them before making another payment.
Landlords Can Be Scammed Too
Rental fraud does not only affect tenants.
A fraudulent tenant may provide false employment records, income information, bank statements or proof of payment in order to gain access to a property.
In some cases, the scammer may pay the initial deposit and first month's rent, take occupation and then stop paying.
The property may even be unlawfully rented out to another person, allowing the original scammer to collect deposits and rent from someone else.
Proper Tenant Screening Matters
Harry explains that landlords managing their own rental properties can be attractive targets when scammers believe proper screening is unlikely to take place.
Effective screening goes further than simply accepting the documents a prospective tenant provides.
Identity, bank account, employment and income information should be verified independently.
References should also be checked rather than relying only on the contact details supplied by the applicant.
Three Rules Before You Pay
Kerry Baldwin joins the discussion with three simple rules for anyone preparing to pay money towards a rental property.
1. Verify independently.
Confirm the listing, the practitioner and the payment details through sources you have found yourself.
2. Don't be rushed.
Urgency is a warning sign. A legitimate rental transaction should allow enough time for sensible checks.
3. If you are unsure, stop.
Make an independent phone call before transferring any money.
Five minutes spent checking could prevent the loss of tens of thousands of rand.
A Key Takeaway
The answer is not to distrust everyone involved in a property transaction.
It is to verify independently.
Confirm the property, confirm the practitioner and confirm the banking details before you submit sensitive information or transfer any money.
The more convincing rental scams become, the more important those extra checks are.
What Is The Property Perspective?
The Property Perspective is Etchells & Young's weekly property segment on 919 FM.
Each episode explores a different aspect of property - from rentals and property management to buying, selling, legislation, sectional title living and the everyday questions property owners and tenants face.
Follow the series as we unpack more of the issues that matter to Johannesburg property owners, buyers, sellers, landlords and tenants.
Looking for a Rental Property?
Whether you are looking for a home to rent or need a reliable tenant for your investment property, make sure you are dealing with a registered property practitioner and following a proper rental process.
Speak to the Etchells & Young team for assistance with rentals, tenant placement and professional rental management across Johannesburg's northern suburbs.
