Rental scams are on rising with every passing day. If you are looking for a rental house, please be sure that you don’t fall into these scam traps. It is getting increasingly common that potential renters are getting victims of scams that result in financial loss as well as mental trauma. Following are the few points to take into consideration while hunting for a rental property.
- House-Hunting through a renowned letting agent: Securing a property deal with a private landlord in an unknown city always comes with a great risk especially if the private landlord is a stranger to you. If you are new to the city and don’t have any family or friends in that city then it is advisable to search for a property through a letting agency instead of reaching out to an unknown private landlord. Letting agencies are often registered and established companies with some form of earned credibility over the years. Doing property deals with those established agencies is a safer option as compared to dealing with an unknown property landlord. Nothing against private rentals but if you don’t know them personally then there is always going to be some trust deficit. Having said this, sometimes you can get a better deal through private rentals but it is advisable to choose a safer option especially if you are new to the city and don’t hold any prior experience of renting a property. You can approach a letting agency either by visiting their office and letting them know your requirements. Optionally, you can search online property portals such as Rightmove.com or letting agencies websites and search properties based on the area you have shortlisted. In case something goes wrong you at least know whom to approach.
- Be aware of fake property listings: While searching rental properties online, be aware of the phishing trap as all the glitters are not gold. You may come across various property listings that look too good to believe. Many times, it happens that people advertise online properties which are not real with fake but attractive property pictures to lure potential rentals to connect with them. They generally ask to deposit token money to arrange a property viewing which off course once deposited never return. Outstation people who cannot come down to see the property in person can very easily become victims of such scams. Sometimes the listed property doesn’t exist at all, or is not available for rent or maybe already rented to someone else. These people ask for a holding amount to book a property by drawing a picture of high demand and after receiving the money they just vanish to be never found again. The key thing is that if the property deal sounds too good to be true then there is a possibility of a potential scam.
- Finalize rental property after personal viewing only: In an ideal world, you should get a property the way it is advertised. It is of great significance to see the property by your own eyes to understand that the property is indeed what it is been described. Never finalise the rental property without personal viewing. By visiting personally, you can be sure about the area, neighbourhood, condition of the property. If it is not possible for you to visit the property personally then you can at least request your friend or someone who you trust to do the property viewing on your behalf before taking the final decision.
- Research the running market price: Do you research property prices in the areas you are aspiring to find the rental property. Before falling for the low price trap please do your homework. Search about the current market rate of rental homes in the area you are searching the house. If somebody is offering a rental house at a very low rent then please approach cautiously to avoid falling for a low price trap and ending up in the rental scam. People in the property rental business don’t run a charity shop and hence try to understand the real reason behind a low rental price than the market trend as there could be some hidden things that are not very apparent.
- Avoid cash transactions: All cash transactions have no money trail behind them and hence it is difficult to prove that such transactions have had happened. Wherever possible, avoid paying renting agencies or a private landlord in cash. If you need to pay anything always pay online or pay by debit/credit card. By doing so at least you have the record of the payment. If anything goes wrong then you have the proof about the payment made. If the landlord asks for a holding deposit, never pay in cash. The same thing goes for deposit money. While paying the deposit amount never pay in cash. Always pay by a card or through an online payment.
- Insist for Tenancy Agreement: Verbal promises may sound good but hold little to no value when dealing in the rental property business. You may want to make sure that everything that was promised to you makes its way into the Tenancy agreement in writing. Whatever terms and conditions are agreed upon should be part of the tenancy agreement. A tenancy agreement is a legal document that both tenant and landlord have to abide by. It could come in very handy during any disputes between the tenant and the landlord. Never trust a landlord who is not willing to do a Tenancy agreement in writing.
- Meet your landlord before finalising the rental home: It is important that you must know who the owner of the property is. Even if you are going through a letting agent, it is a good idea to meet your landlord personally so that you can rest assured about the real owner of the property. This way you will get a chance to know your landlord and try to gauge his nature. This may help you to decide on whether to finalize the deal or not. If possible, try to talk with the tenants who are currently living in the property about the overall living experience in the property and the landlord. These actions should give you enough confidence to take the final decision.
- Renting without a background check trap: It is a very common practice for landlords to carry out a background check of the tenant. If you come across a landlord who is ready to rent a house without a background check then that should sound a big alert to you. There is no real reason why any landlord would oppose a background check of a tenant as it is done for their assurance. Generally, after the background and credit checks, only the landlord decides on renting a house to a potential renter. If the landlord doesn’t know you personally and is still ready to rent you his property without verifying your background then it must be a fraudulent case.
it is impossible to list down every possible way to avoid rental scams as there are always new ways to target potential renters into scams. However, the above points should give you a good starting point to make yourself aware of a few common ways people fall into rental scams.
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