Gold Coast rental scams: Desperate people trying to find home ripped off $71k in past year

Cruel scammers are targeting Gold Coast renters struggling to find somewhere to live by tricking them into paying hefty bonds then disappearing. HOW THEY’RE DOING IT

Cruel scammers are targeting desperate Gold Coast renters struggling to find somewhere to live by tricking them into paying hefty bonds then disappearing.

The number of rental scams reported in Queensland has doubled in the last 12 months, with victims losing tens of thousands of dollars, figures obtained by the Bulletin show.

So far this year, 111 people have been scammed out of $74,000 – mostly for bonds – and never heard from their prospective landlord again.

The scam rise comes amid a dire shortage of properties, rising rents and cutthroat competition among tenants vying for places.

The scammers – often based abroad – advertise on online classified sites or send messages to people who make public appeals to help find rental properties.

However they do not own the properties they say they have available for rent.

“They are taking photos from real estate websites and advertising properties for rent privately,” one Gold Coast renter said.

“After getting you to sign the tenancy agreement and paying a bond they block you. Multiple families have lost money and hope.”

In all cases the scammers ask for deposits while making excuses for being unable to show off the property, or meet the desperate home-hunters.

In messages seen by the Bulletin, excuses used include being disabled or being forced to move interstate at short notice for work or family reasons.

One message sent to multiple prospective renters about a purportedly available rental says:

“It is available at the moment and good to move in. I’m currently out of the state. I’m disabled, just moved unplanned with family for a surgery and have been in hospital here for over three weeks now so I have to rent it out.

“All I want is someone neat and tidy who will always take care of my property just like their own because it is so much precious to me.”

If a renter shows interest, the scammer typically asks they transfer bond money, promising the keys would be sent by courier or available to pick up at the property.

“The guy claimed to be the homeowner but when it came to getting the keys he asked to cardless cash the bond,” one person said.

“He said he would give us a ‘code’ to get into the unit where the keys would be supposedly left.”

The Australian Competition and Consumer Commission (ACCC) said it had seen an upsurge in cases reported to its Scamwatch hotline.

From January 1 to the end of October, it said Scamwatch had received 111 reports of rental accommodation scams in Queensland – up from 58 for the whole of last year.

The total reported losses from the 111 scams were $74,761, a spokesperson said.

Scam reports peaked at 20 in April, with no fewer than six in any given month, the ACCC said.

“In 2020 we received 58 reports of rental accommodation scams in Queensland with reported losses of $34,800.”

The ACCC advised renters to never send money to a prospective landlord before inspecting a property.

Residential Tenancies Authority (RTA) Chief Executive Officer Jennifer Smith said prospective tenants should be wary if an advertiser urged them to sign a lease and hand over money as quickly as possible.

“Most agencies and managing parties will follow a thorough application and screening process which takes time,” Ms Smith said.

“Ask for a copy of the proposed tenancy agreement, which must be given to you before you pay any money. Check that the tenancy agreement is in the correct format and contains all the agreed details and read through the special terms for further information about your rights and responsibilities.

“Make sure you get a receipt from the property manager for any money you may pay to them.

“Remember, if it seems too good to be true – it quite possibly is.”

RTA tips for avoiding scams

• Research your rental property online. This could include looking for images or information about the rental property – including the rental history for the address – and identifying if the details match.
• Check that the person and the company listing on the ad are real. If they claim to be from an agency, look for more information such as the office number or location, check for other online listings, and explore their website and online profiles to ensure they are consistent and
  professional.
• Be cautious if the rental price seems lower or higher than what would be a reasonable market rent for that type of property and/or location.
• Where possible, inspect the property in person and don’t pay a bond until you have received a copy of the proposed tenancy agreement
• Lodge your rental bond securely online using RTA Web Services, or ensure you receive a receipt from the property owner/manager for any money paid.

The scams come as a new report last week revealed the cost of renting on the Gold Coast continues to rise at an “unprecedented” rate.

The annual Rental Affordability Index (RAI), released by a coalition of advocacy groups, showed affordability significantly decreasing in the Gold Coast, with areas such as Helensvale, Broadbeach and Robina now rated severely unaffordable.

Q Shelter executive director Fiona Caniglia said: “Decreasing rental affordability is unprecedented and is having devastating impact on peoples’ lives.”

SGS Economics & Planning partner Ellen Witte said the situation was “untenable” for low-income households.

“This report shows the most marked changes in rental affordability since we first released the RAI in 2015,” she said.

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Originally published as Gold Coast rental scams: Desperate people trying to find home ripped off $71k in past year