How To Spot And Avoid Rental Scams

Posted on August 16th, 2024

With property owners exploring new ways to find the perfect tenant, there are growing opportunities for property rental scams, where people can lose money in the form of deposits or bonds to deceptive or fraudulent listings. At GrannyFlat Rental, we do our best to prevent advertising these unethical listings, but all renters should be aware of this advice. Read our warning signs of scamming behaviour and our tips to safely secure your tenancy. Tips 1 and 2 are the surest ways to stay safe from property scams.

Warning signs

Be particularly wary of a listing if:

• the landlord or property manager is avoiding phone calls or meeting in person with excuses like being out of the country
• the bond requested is significantly more than a months’ rent
• you’re asked to pay in cash or to share your credit card information
• you’re rushed or pressured to pay bond to secure the lease before another prospect tenant does
• the property has been on the market for an unusually long time in comparison to other properties the same price
• your asked to transfer to bank account details that belong to someone other than who you have been in communication with
• you’re not questioned about your work or rental history. The market is competitive, so property managers and owners are in a position to make sure they are renting to the most reliable and trustworthy tenant, and it is unusual to be approved an application without having a credit check run

Tips

• Don’t pay a deposit without inspecting a property first. A drive-by isn’t sufficient; walk inside the property if possible, or have a friend or family member inspect if you’re unable to.
• Request to pay a bond through your state’s relevant governmental service:
• NSW Rental Bonds Online
• WA BondsOnline
• QLD Online Bond Lodgement
• VIC Residential Tenancy Bond Authority
• SA Residential Bonds Online
• TAS My Bond
• ACT Rental Bonds Office
• NT Northern Territory Government The Northern Territory doesn’t currently have a Bond platform, so read and follow lodgement directions carefully
• Search the property address on the internet. Compare any previous advertisement of it with the details you’ve been given. Checking Google Maps street view to see if the outside of the property matches the inside images.
• Research the person your in contact with on the internet and social media. This may not always be conclusive but can reveal some warning signals, for instance if a private owner advertises several listings across different platforms, or if a real estate agent has no online presence.
• Download or screenshot the property photos and use Google’s reverse image search to find the source of the image and check if they’ve been taken from another advertised property. (Even if you can’t find the image source or it matches the address given, the rental may still be illegitimate and you should inspect before making a payment)
• Copy and paste the property description into a search engine to see if it was taken from another listing. This would be abnormally lazy for a legitimate listing.
• Call the landlord or property manager. It’s always advised to have a real conversation with this person before moving into a rental, as this relationship will continue throughout your tenancy and you should be aware of who you’re renting from, and sense if your values align.
• Always review the lease agreement.
• If you’re still concerned, request to see proof of ownership.
• Don’t share personal information such as your driver’s license, passport or bank details directly to a landlord.

What to do if you think you’ve been scammed

• Seek advice from the Australian Cyber Safety Centre to keep your private details safe
• Report the listing to whatever service you have found it on - help keep others safe and let the platform that you found the property on know that you think you’ve been scammed
• Report the scam to ScamWatch
• Contact your local police

Stay safe, renters!

Author and posted by Alysha de Ruyter