Renter scam: Aussies struggling to find property targeted by fake landlords

Heartless scam targets renters struggling to find a place to live – these are the warning signs to watch out for

  • Scammers are posting fake properties online
  • Tenants asked for a deposit before inspection
  • Scam has cost Victorians more than $125,000

Australian renters struggling to find a home are the targets of a callous new scam involving scammers posing as property owners.

Scammers use popular online property websites and marketplaces to list fake properties, losing tenants in more than $125,000 in one state.

The offers encourage potential renters desperate for a home to put down a sizable down payment to secure the rent.

Desperate Aussie renters are targets of vicious new fake property listing scams, with scammers urging potential renters to pay a down payment without inspecting a home (pictured shows potential renters queuing at an open house)

Implying a sense of urgency, scammers demand prepayment of security deposits for the fake properties – and even ask for identity documents.

The scam stole more than $125,000 from tenants in Victoria in the first four months of 2023.

Detective Sergeant John Cheyne of the Victoria Police Cybercrime Unit said rental scams are on the rise online, giving ‘false hope’ to Aussies looking for a place to live.

“Scammers post ads on popular sites like Facebook, Flatmates, Realestate.com and Airbnb and advertise rental properties,” he told Sunrise.

“They are often at reduced rates or below market value and then imply a sense of urgency in these tenant hopefuls to secure.”

“It gives false hope to a desperate renter looking for a house. Meanwhile, it takes their down payment, steals it, and then steals their identity as well.”

It comes after a Sydneysider warned fellow tenants about the scam after making inquiries about a residence in Rosebery, Sydney’s east.

Cihan Kenar came across a property in his area that was advertised for $400 a week – a price Mr. Kenar thought was too good to be true.

“This seemed very odd, it was a three bedroom detached house… This is way below market value.” Mr. Kenar told 7 News.

Mr Kenar said the initial exchange was like any other inquiry they had done with questions about the house and an appointment to inspect it.

He said the property seemed ideal as it was only seven minutes away.

The ‘landlord’ replied to Mr Kenar claiming he had been inundated with messages about the property and that he was very busy.

“He asked if I could put down a deposit to secure the property,” Mr Kenar said.

Cihan Kenar inquired about a property in Rosebery, Sydney’s east, and was told by the scammer, posing as a landlord, to pay a fully refundable deposit (pictured)

Sergeant Cheyne warns tenants to remain vigilant as rental scams are ‘becoming quite widespread at the moment’ (stock image)

He said the message set off alarm bells and he decided to confront the man before blocking his number.

“Are you fucking serious?” Mr Kenar wrote.

“You lure me with a cheap rent and ask for a deposit?”

Sergeant Cheyne warns tenants to remain vigilant as rental scams are “becoming quite widespread at this point.”

“Google the phone numbers or address to see if there’s another listing for a possibly higher price than advertised,” he said.

“Be very careful before providing identity to someone you haven’t met for a property you haven’t physically visited.”

Australian Competition and Consumer Commission (ACCC) ScamWatch claims that if an advertised rental property looks too good to be true, ‘it probably is’.

The government agency encourages renters to do their due diligence by searching the listing’s description online to see if it appears in another listing.

Tenants are urged to deal with a licensed real estate agent and not to send money or provide personal information without inspecting the property.

ScamWatch advises those who believe they have been scammed to contact their bank, report the scam to the ACCC and notify the relevant website of the scammer’s profile name and details.

PROTECT YOURSELF FROM RENTAL SCAM

– Do not send money or give personal information to a potential landlord before you have inspected the property you intend to rent

– Scammers often reuse descriptions and images for rental ads, so search the web for the exact wording and reverse search for images.

– Check other sites to see if the property is advertised in multiple places but with different contact details.

– If you are dealing with an agent, make sure they are licensed. Independently search for a phone number and speak to the property manager over the phone or arrange a face-to-face meeting.

– If you have provided your bank details or paid money to someone you suspect is a scammer, please contact your bank immediately.

– Report scams to the ACCC via the Scamwatch report a scam page.

– Contact the relevant website to let them know the scammer’s profile name and other details that can help them avoid scamming others.

Source: ScamWatch

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