Scammers are taking advantage of the tight rental market to steal from prospective tenants, peak body warns
The Real Estate Institute of Western Australia is warning renters to be on the lookout for a potential scam.
With the rental market tight, scammers looking to take advantage of the situation are targeting tenants, REIWA said.
REIWA members have reported seeing some of their listings advertised on lesser-known websites, the peak body said. While the details of the listing appear legitimate and include open-home times, the agent’s details may be missing, and tenants are instructed to contact the property’s purported owner after they’ve viewed the home.
“Potential tenants may then be asked to pay upfront to secure the property and end up without a home and out of pocket,” REIWA said.
REIWA said that prospective tenants who attend an agency’s home open should also make an application through that agent.
“It can be very tempting to try and take a shortcut to get a foot in the door, but it may not be legitimate and is likely to be expensive,” REIWA said.
In a related scam, properties are advertised on lesser-known websites or through social media with prospective tenants instructed to email or DM the “owner.” Once they do, they are pressured into transferring bond money or rent before even seeing the property or receiving a lease agreement.
So far this year, WA ScamNet at Consumer Protection has fielded 40 reports of rental scams, with 21 victims being taken for a total of $41,000, REIWA reported. In 2021, there were 48 reports, with 18 victims being cheated out of $32,320.
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REIWA recommended using real estate portals and licensed agencies to avoid scams.
“Searching for a rental through a real estate agency means you are dealing with real people face to face,” REIWA said. “A licensed agent will abide by residential tenancy laws and can actively help you find a rental by keeping you in mind when listings become available. That is why it is worth approaching your local real estate agencies and letting them know you are searching for a rental.”
Real estate agents are also legally obligated to follow a code of conduct, giving tenants even more protection, REIWA said.
Scammers target all age groups, preying on economic uncertainty to defraud young adults and exploiting a lack of cyber literacy to cheat the elderly, according to a recent Bankwest report.
The COVID housing boom created a fertile field for scammers, with fraudsters stealing millions in property-related scams, according to a recent report from the Real Estate Institute of New South Wales.
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