Rental property scams are becoming increasingly sophisticated in South Africa, with scammers exploiting urgency and various digital platforms to target and steal from unsuspecting would-be tenants. From fake listings and impersonated agents to requests for upfront payments before viewings, these schemes can be difficult to spot without the right knowledge. The CSi Property Group has put together a list of the common scams to be avoided and a playbook on how to rent property safely.
Scam 1: Phantom property listings
Scammers create attractive property listings using sophisticated pictures that they have acquired or created elsewhere online. These fake properties are advertised at low prices to lure in victims who may be struggling to find an affordable home. Once a prospective tenant makes contact with the scammer, they will be asked to pay a deposit, admin fee or first-month’s rent upfront. They will typically tell people that there has been lots of interest in the property and that they need to pay now to avoid missing out. In other words, they will create a sense of urgency and encourage you to pay quickly. Once this payment has been received, the fake property practitioner will disappear.
Scam 2: Fake rental listings and agencies courtesy of AI
The evolution of artificial intelligence has unfortunately given scammers a new weapon. Thanks to websites like ChatGPT, scammers can generate realistic property photos, fake documents, deepfake videos and cloned voices to impersonate owners or agents. This makes it harder to tell who and what is real without careful verification. Another point to note is that scammers are increasingly using WhatsApp with fake business profiles to contact prospective tenants. They may pose as legitimate agents or clone real agent identities. If you are at all unsure about anything, phone your property practitioner’s office using the phone number listed on their website.
Scam 3: Hijacked listings
In these cases, scammers copy photos and details from legitimate rental adverts, but replace the contact information with their own. Prospective tenants are then misled into believing that they are dealing with the real property owner or practitioner. As is the case with phantom property listings, communication will quickly cease once the deposit has been paid.
Scam 4: Scams targeting landlords
In the scams we hear about most often, prospective tenants are the victims. However, landlords also need to be on their guard. There have been cases of fraudsters posing as tenants, providing fake proof of income and references to secure a lease. After moving in, they fail to pay the rent and then vanish, leaving landlords to manage costly eviction processes. Another modus operandi is to sublet the property to multiple unsuspecting tenants, collecting rent from various parties before disappearing.
Top 5 tips for protecting yourself from rental property scams
- Make sure you’re dealing with a legitimate property practitioner. Check the contact details on their website and use only the phone numbers and email addresses you find there.
- When paying deposits, verify the agency’s banking details on the phone. Make a payment of R100 first. Once the agency verifies telephonically that they have received the funds, pay the balance of the deposit.
- Always view the property before sending any kind of payment. If payment is demanded upfront, you’re dealing with a scammer.
- Do not ever pay a property rental deposit via wire transfer or cryptocurrency. Reputable real estate agencies will require payment via electronic funds transfer (EFT).
- We’ve saved the best for last. Rent a property only through a recognised and registered real estate company. Avoid responding to private adverts you see on social media – especially if the price seems too good to be true.
If you’re looking for a property to rent in Gauteng, get in touch with the CSi Property Group. We specialise in property rentals and we’re here to offer you a safe way to find your ideal home.
