Real Estate Investor Magazine South Africa November 2018 | Page 24

PROPERTY MANAGEMENT
Avoid falling victim to a
rental scam
F
or the prospective tenant, renting a property should be
a relatively easy task without hassle - provided you are
well-organised and informed. Once you have found a
property you wish to lease, saved up a deposit and have met the
minimum requirements, the agent or landlord is then entrust-
ed to see through the deal.
However, the emergence of social media and online
scamming has grown exponentially over recent years with so
called ‘hijacked ads’. In this scam, criminals make use of real
properties that have been listed on legitimate sites. The ad’s
contact information is modified and gets relisted, usually on
lesser known websites, where unsuspecting tenants fall victim
to rental scams.
Mark Burt, Rentals Manager of Greeff Rentals, advises
the tenant to only search for rental properties on well-known
property portals such as Property24, Private Property and IOL
Property. “These portals follow a stringent security process
wherein they are required to establish ownership of each
property before listing. Finding a property listed on one of
these websites is a good indicator of the validity of the rental.
Consider properties that are listed by a reputable agency. Find
a brand that you or someone that you know trust and contact
them about the property you are interested in.”
• Be suspicious if the agent or landlord does not ask to sign
a lease agreement due to a distorted verbal agreement.
Always insist on signing a lease agreement and going
through it thoroughly as well as keeping a copy for yourself.
• Be aware if your agent or landlord asks you to pay your
deposit or rent in cash. This is dangerous for many obvious
reasons and is important to have a paper trail.
  Burt advises on conducting the necessary due diligence
before entering into a potentially detrimental agreement.
“If you have taken the time to ask the right questions then
your risk is minimised accordingly. Don’t be afraid to have an
attorney investigate the validity of the owner and contract you
have been presented with, if you are not using an agent. This
will come at an extra cost but will give you peace of mind.”
Be aware of the following red flags: Always make the utmost effort to do your research and ensure
you have a paper trail to cover yourself. Deal with an agency
who is able to offer you all the security and property checks
you may need before you sign.
“Lastly, if after everything something still feels wrong with
the listing, the landlord’s story changes or something just
seems odd, then halt the process to revaluate,” Burt concludes.
• Be wary if an agent or landlord express enthusiasm or
insists on renting out a property without having done a SOURCE Greeff Properties; TPN; Private Property; Property24
Be cautious if the landlord or agent refuses to or cannot
meet you in person. An agent or landlord will always do their
utmost to meet you at your convenience.
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thorough background and credit check.
• Be cautious if you are asked to pay a deposit, portion
of a deposit or your rent without having signed a lease
agreement or having had a proper viewing of the property.
NOVEMBER/DECEMBER 2018 SA Real Estate Investor Magazine