Real Estate Investor Magazine South Africa May/June 2015 | Page 33

SCAM ALERT

Rental
Scams

Beware The Phantom Landlord
BY DEXTER LEITE

C

onsumers are cautioned to be aware of what
may be termed the ‘phantom’ landlord. There
are an increasing number of scams or potential
scams perpetrated on aspirant tenants.
This is not only to the detriment of the potential
tenant, who is then significantly out of pocket, but also
damaging to the legitimate rental property industry.
‘Ghost’ rental agents or agencies advertise rental
properties via websites or print media. These are
usually pegged at well below market-related rentals,
with the units situated in popular apartment blocks
or schemes. This has the result of inducing potential
tenants to pay so-called deposits and rentals, and sign
bogus lease agreements quickly - on the basis that the
tenant believes that they are competing with a number
of other tenants for the same property.
Having signed the lease, the tenant returns it to
the bogus agent, who ostensibly has it, signed by a
‘phantom’ landlord, upon which event the tenant parts
with their money, never to hear from the ‘agent’ again.
The tenant thus has not secured any r