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How to spot a rental scam
If someone asks you to pay a deposit before you have seen the home, walk away. That is the most common rental scam, and it works because good rentals are hard to find and people feel pressed to act quickly. The signs below help you spot a fake listing before you lose money.
Red flags in the advert
Scammers copy photos and descriptions from real listings and post them at a low price. Watch for these signs:
- A rent far below similar homes nearby. Compare the advert with other listings in the same area. A big gap needs an explanation.
- No exact address. The advert gives only a suburb, or gives an address that does not match the photos.
- Poor or inconsistent photos. You see photos that look professionally taken but have no view of the street, or the same photos appear under a different address. A reverse image search on a photo can show whether it is used elsewhere.
- Odd wording. Messages that seem copied, urgent or full of promises should make you cautious.
Red flags in how they behave
A genuine landlord or agent wants you to see the place, because they want a tenant who is happy to stay. A scammer wants your money before you look closely. Be suspicious when someone:
- Says they are out of town and will post or courier the keys.
- Refuses to meet you or show you inside.
- Asks for a deposit or a “holding fee” before you have viewed.
- Says other people are ready to pay, so you must pay today.
- Asks you to pay into a personal account, in cash, or by an unusual route such as a gift voucher.
- Wants payment but cannot show you any proof they own or manage the home.
Check who you are dealing with
If an agent is involved, ask for their name and agency, and ask to see their Fidelity Fund Certificate. A property practitioner needs a valid one to do business, and cannot claim payment for work done without one. You can check with the Property Practitioners Regulatory Authority (the PPRA). Ask for the agency’s address and visit it if you can.
If you deal directly with an owner, ask to see proof that the person owns the home or has the right to let it. A copy of their ID and a municipal account in the same name are a start. You can compare the name with the person’s bank account name when you pay. A mismatch is a reason to stop.
Agents also have duties that a scammer will skip. An agent may not take a letting mandate without the owner’s signed disclosure form, and must give you a copy before you make an offer or sign. Ask for it. A genuine agent will have it.
Know what a normal deal looks like
A landlord may ask for a deposit, and the Act sets no cap on the amount. A deposit must be put in an interest-bearing account, and you receive the interest. If an agent holds it, it goes into the agent’s trust account. Before you move in, you and the landlord must inspect the home together. A landlord who skips these steps, or who wants the deposit in a personal wallet, is not following the usual process.
Ask for the lease in writing. A lease does not have to be written, but the landlord must put it in writing if you ask. Read it before you pay. A refusal to give you anything in writing is a warning.
If you think you have been scammed
- Stop all further payments.
- Contact your bank straight away and ask whether the payment can be traced or recalled.
- Keep every message, advert, screenshot and proof of payment.
- Report it to the police and open a case, and give them your evidence.
- Report the advert to the site where you saw it so others are not caught.
- If an agent was involved, report that agent to the PPRA.
What to do next
Always view the home in person, take someone with you, and do not pay anything until you have a lease you have read. Our guide on what to check when renting gives you a checklist for the viewing, and rental deposits: the rules shows what a proper deposit process looks like. You can also compare the rent against owning with the rent vs buy calculator.
This article is general information for South African readers, not legal, financial or tax advice. Rules and rates change, so check your own situation with an attorney, your bank or a tax practitioner. Our property calculators can help you work out the numbers.