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Rental scam tricking Victorian tenants and costing them thousands: REIV

Desperate renters are losing thousands to fake landlords and dodgy listings. Victoria’s top real estate industry group has flagged the warning signs to know before its too late.

Victorian renters are being targetted by scammers trying to trick them out of thousands of dollars.
Victorian renters are being targetted by scammers trying to trick them out of thousands of dollars.

Scammers posing as landlords are preying Victorian renters, tricking them into handing over thousands of dollars for fake rental properties as the housing crisis worsens.

Fake ads on online listings sites are being used to lure desperate renters into transferring deposits before they’ve even stepped inside a property.

Once the money is sent, the scammers disappear.

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Renters who spoke to the Herald Sun said they feel the scammers are deliberating targeting international students and young women, with scammers using high-pressure tactics to force them into making payments before they even step inside a property.

Last year, The Herald Sun reported four Monash University students were left homeless and $2,400 out of pocket after falling victim to a fraudster using the alias Samantha Khat, who showed them a rental home, took their deposit, and vanished.

“It really affected our mental health,” one of the students said.

REIV chief executive Kelly Ryan calls for tougher measures to stop rental scams.
REIV chief executive Kelly Ryan calls for tougher measures to stop rental scams.

REIV chief executive Kelly Ryan acknowledged that young women, families, and international students searching for a home could be vulnerable to rental scams, especially in a competitive rental market.

“With such intense pressure to secure a rental they may feel rushed into making decisions, which can leave them more exposed to scams,” Ms Kelly said.

“Fake rental scams have exploded in recent months, with scammers using stolen listing photos and fake agent details to deceive renters.

“We’ve received a noticeable increase in calls over the past week regarding rental scams, which indicates that scammers are becoming more sophisticated,” Ms Ryan said.

Ms Ryan is calling for a dedicated rental scam reporting platform, similar to the eSafety Commission, to give tenants a fast-tracked way to report fraud and hold scammers accountable.

“Having a dedicated platform where renters can report scams directly to authorities would be beneficial,” she said.

International students are among the top targets in Victoria’s growing rental scam crisis.
International students are among the top targets in Victoria’s growing rental scam crisis.

Melbourne renter Kathryn Whiteley was almost scammed after a dodgy listing pressured her to pay a deposit upfront.

“The listing looked fine in the photos, but when I went to check it out in person, the reality was completely different,” Ms Whiteley said.

Rental scammers use Facebook Marketplace to trick tenants into fake listings. Picture: Facebook
Rental scammers use Facebook Marketplace to trick tenants into fake listings. Picture: Facebook

“There was mould everywhere — on the ceilings, in the bathroom, even in the kitchen cupboards – the place was falling apart.”

Ms Whiteley said the person running the listing tried to get her to pay a deposit upfront before she inspected it.

“They were really pushy about it, saying things like, ‘It’s in high demand, you should lock it in now before someone else takes it.’,” she said.

“But something felt off, so I refused – looking back, it was 100 per cent a scam.”

Dodgy landlords use stolen listings to trick desperate tenants into paying.
Dodgy landlords use stolen listings to trick desperate tenants into paying.

Victoria Police Cybercrime Squad Detective Sergeant John Cheyne said rental scams are robbing people of their savings and making the housing crisis even worse.

“An opportunistic scam like this can end up hitting everyday Victorians where it really hurts, particularly during a shortage of rental properties and a cost-of-living crisis,” Mr Cheyne said.

Renters and Housing Union Australia general secretary Harry Millward said the issue isn’t just scammers — it’s ‘a symptom of a much bigger problem’.

“The core issue isn’t just scams — it’s housing insecurity,” Mr Millward said.

Desperate renters are being preyed on by scammers across Victoria with fake ads
Desperate renters are being preyed on by scammers across Victoria with fake ads

“Until we address the root causes — rental instability, lack of public housing investment, and regulatory loopholes — these problems will persist.”

Mr Millward also believed stronger protections are needed to stop renters from being forced into desperate situations where they fall for scams.

“With fewer properties available for long-term rent, renters are becoming more desperate, which makes them more susceptible to scams, unsafe living conditions, and even coercive rental agreements,” he said.

Dodgy wiring at a house that the tenant allegedly found. Source: shitrentals.org
Dodgy wiring at a house that the tenant allegedly found. Source: shitrentals.org

Data from the Australian Bureau of Statistics (ABS) shows that 514,300 Australians fell victim to scams in 2022-23, with those aged 35 to 44 the most affected.

Victoria accounted for 26 per cent of all cybercrime reports in Australia, making it one of the worst-hit states for fraud.

Authorities are warning renters to never transfer money before seeing a property, and to verify agents through REIV, Consumer Affairs Victoria, or major platforms like realestate.com.au.

REIV chief executive Kelly Ryan said more needs to be done to stop scammers infiltrating rental platforms.

“We’ll be alerting major listing platforms about this emerging pattern,” Ms Ryan said.

“While these platforms already have verification measures in place, preventing scammers from copying and pasting listing details would be another layer of protection.”

Anyone who suspects they’ve been scammed should report the matter to police via ReportCyber and contact their bank immediately.


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david.bonaddio@news.com.au

Originally published as Rental scam tricking Victorian tenants and costing them thousands: REIV

Read related topics:Melbourne

Original URL: https://www.news.com.au/finance/real-estate/rental-scam-tricking-victorian-tenants-and-costing-them-thousands-reiv/news-story/0fb7d3bd17e2845760b19ae1993b598b