Real estate agents warn prospective tenants to look out for rental scams

Scammers are targeting prospective tenants desperately searching for a rental property in Adelaide’s crowded market. Here’s how you can avoid them.

South Australians desperately searching for a rental property are being urged to keep a close eye out for fake listings.

Scammers posing as landlords have been trying to con people into paying hundreds of dollars in bond or a few weeks’ rent for months, with some people falling victim to the rackets.

But real estate agents say the warning has become more urgent in the state’s current market, with demand for rentals across Adelaide the highest it’s been in a decade.

Turner Real Estate chief executive Emma Slape said the scammers were targeting vulnerable people mostly on Gumtree and Facebook marketplace.

“It’s been ongoing for ages, I think people are just becoming more desperate (for rentals) and scammers are aware of that,” she said.

“The anxiety in the market place is bringing the issue to a head.”

The scammers usually rip photos off real estate websites, tell people they are either busy or live interstate and could not hand over the keys in person so would post them or leave them somewhere safe to pick up if the victims transferred bond or a few weeks’ rent.

Ouwens Casserly property management director Adam Blight said the issue hadn’t subsided since a spike was reported in July last year.

Both Mr Blight and Ms Slape urged people never to transfer money without seeing a property and filling out the proper paperwork first.

According to the Australian Competition and Consumer Commission, ScamWatch has received 71 reports of rental scams across the country so far this year, with over $33,000 in reported losses.

Of those, three were reported in SA, with $1500 in reported losses.

Last year there were 350 reports and more than $203,000 in reported losses – 13 of which were reported in SA with $3037 in reported losses.

A Gumtree spokesman said the safety and security of its users was its main priority.

“Our Help Section on real estate provides tips on how to have a safe and successful experience, and reminds our community to be vigilant when using any online marketplace,” they said.

“It’s important that tenants take precautions and we encourage our community to always avoid paying bond or rent for a property before it has been viewed, and check that the real estate or landlord is legitimate before sending any money.

“We work on a report and take-down process, and encourage users to report any suspicious listings that contravene our policy guidelines via the ‘Report Ad’ function, so that we can help keep the community safe for everyone.”

A SA Police spokesman said they were aware of multiple reports in the last six months of such scams relating to both residential and holiday rental accommodation.

They said warning signs included a comparatively low rental price and a short deadline for application.

“This technique is used to rush people into parting with their money before they have an opportunity to take a step back and realise it is a scam,” they said.

“Scammers will also often make excuses to avoid meeting in person, often citing medical grounds, family issues and recently, COVID-19.

“South Australia Police recommend using reputable real estate websites when looking for properties to rent and where possible, view the property in person before parting ways with any money.”

A Consumer and Business Services spokesman said while it had not received any complaints recently, it urged consumers to be vigilant.

The scammers usually rip photos off real estate websites, tell people they are either busy or live interstate and could not hand over the keys in person so would post them or leave them somewhere safe to pick up if the victims transferred bond or a few weeks’ rent.

HOW TO AVOID BEING SCAMMED

– Always view a property before you submit an application.

– When applying for a property, consider whether you are applying through a reputable portal or through a structured application form.

– Choose to rent through an agent – as part of agency practices, the agent should be checking the ownership documentation of a property.

– Be wary of anyone asking you simply for your bank account details – a tenancy application should include a range of things such as details of employment, bank statements and formal ID documentation.

– If you’re not sure, don’t transfer funds. Do more research such as googling the property to see if it’s advertised online somewhere else.

– Keep copies of any correspondence.

For more prevention advice and information on current scams and cybercrimes affecting South Australians, visit www.police.sa.gov.au/scams

Tenants can always contact Consumer and Business Services on 131 882 for further advice on residential tenancy issues.

If you have fallen victim to one of these scams, contact the ACCC via the ScamWatch website atwww.scamwatch.gov.au

Originally published as Real estate agents warn prospective tenants to look out for rental scams