How to Avoid Rental Scams

As in most industries, there are scams.  Scams take advantage of vulnerable people, or people in a desperate situation, with the need to move fast and where there is an element of risk.  

When a tenant finds a property that they like, they have to move fast. There could be a desperate need to move into that place otherwise the months of searching continue at the risk of being homeless or spending money in expensive hotels whilst finding somewhere to live. There is an element of risk, since other people could get the property that you want, other companies could be marketing the property, the customer does not always know who is working the property and the risk of losing it bears heavy on their mind.  

These elements can be a feeding ground for scammers.

Renting a place is a challenging experience, with concerns about facilities, budget, extra fees, and accessibility against the time factor of having to move quickly and be secure in the knowledge that you have a roof over your head. You may stumble over an apartment listing that has everything, but in your enthusiasm, you may overlook some of the red flags.

There are stories everywhere of cons and scams perpetrated on unsuspecting people.  A couple was conned out of £800 in 2020 after discovering what they believed was a decent apartment on Gumtree, that turned out to be in an apartment owned by someone that had no idea it was being advertised for rent. Furthermore, three quarters (74%) of rental scam instances submitted to Action Fraud between November 2020 and December 2021 were submitted by young individuals. Rental scam occurs when victims are scammed into paying upfront fees to secure property by posing landlords and leasing agents. In addition, 4,800 rental scams for a total of £7 million were recorded by the public in 2021, according to the BBC Radio 4 programme You and Yours. 

In today’s online world, rental frauds and bogus listings might seem to be the genuine thing until you examine deeper. So, always be cautious when you are entering a transaction, not just for a property but for almost everything that involves money and exchange of sensitive information.

How to Avoid Rental Scams? 

Let us dive into a few red flags of rental scam schemes so you can avoid them. 

1. They say they can’t meet in person or make phone calls. 
2. Rent is a lot less than the market price.
3. Paying a landlord in an untraceable way. A landlord’s intention to remain anonymous should be taken as a warning sign.
4. They want you to move in right away, even if you haven’t inspected the property. For most rental scams, the seller marketing the property does not have entry to the interior of the house.
5. The landlord is not listed through any tenancy deposit scheme. Every landlord in the United Kingdom must partake in a registered tenancy deposit scheme.
6. The contract does not look official, or has not been prepared by a solicitor
7. There are extra fees that keep appearing and money in advance is demanded.
8. There could be offshore transactions.