The thrill of moving into your new home is incomparable. You’ve finally found the ideal place to live after conducting an extensive online search. It has the right number of bedrooms, is in a desirable neighbourhood, and is within your budget.
You are now ready to transfer the necessary funds to move in (rent and deposit).
It’s a win-win situation for everyone.
Right?
Wrong!
Many things can go wrong, including becoming a victim of a rental scam.
The Internet has made it easier to find a rental, but it has also become a haven for scammers. Rental scams can cost you a lot of money, and just because it hasn’t happened to you yet doesn’t mean it won’t happen to you in the future.
Here are some of the most common rental scams and how to avoid them to make your rental experience better.
So, how do you know if a rental is a scam?
1. You Become Entangled in the Bait-And-Switch Rental Scam
Yes, I used the word entangled!
The bait and switch scam is a common one in the rental industry. This is when you receive a bogus listing, most likely online, for a home that the alleged agent wishes to rent or lease. These agents are unlikely to rent or lease out the property because they do not manage it.
Warning Signs of Bait and Switch
To successfully recognize a bait-and-switch scam, look for the following red signals.:
- If an agent starts asking for payment information before you’ve fully understood the rental terms.
- When a rental property is advertised at a deep discount with no down payment or deposit required.
- Poor communication occurs when the agent is unwilling to deliver precise information or dismisses your concerns.
2. Forever Vacant Rental Scam
This is when you come across an online ad for an empty, nice-looking rental that has everything you need. The rental is reasonably priced for the location and space you require.
You end up paying cash to the agent because they take advantage of your fear of losing out (FOMO). This is when he insists that if you do not pay the rent deposit immediately, the rental may be occupied.
When you pay rent in the forever vacant scam, the agent blocks your phone number and moves on to the next victim.
3. They Want You to Move in Immediately, Without Ever Seeing the Property
Most of the time, these scams go hand in hand with the forever unoccupied fraud. However, in this case, the agent insists on you moving in without first inspecting the apartment.
The realtor will then either defraud you or present you with a rental that is nothing like the one you saw earlier.
You wind yourself paying rent for a rental that is in poor condition when you could have secured a fantastic place for the same price.
4. They Ask for Rent or a Security Deposit Before Signing a Lease
The payment of rent or a security deposit should always be made after the signing of a lease or rental contract. Never before.
You should be cautious if an agent insists on you paying a deposit or rent before without a documented legal contract.
Read More: Should You Rent Or Will You Buy?
How Do I Avoid a Rental Scam?
Now that you know how to avoid being scammed, here are a few pointers to assist you reduce your risk.
Never Make a Transaction in Cash
Receiving untraceable payments is a problem in almost every scam operation. A tenant should avoid paying rent in cash. This is especially true with a security deposit and the first month’s rent.
We should be wary of any attempt by a landlord or agent to stay anonymous as a red flag. Even in the best-case scenario, if repairs are required, locating this person may be challenging.
Insist on a Signed Lease
Oral leases may be legal, but they are inconvenient. To prevent fraud and to layout the parties’ rights and duties, the rental agreement should still be in writing.
A tenant should seek not just a written lease, but also a copy of the lease that the landlord has signed.
Never Rent Without Seeing the Rental First
So many terrible rental situations start with a tenant signing a lease without viewing the place. Before signing a lease or transferring payments, the tenant, or a friend or family member of the tenant, must see the flat in person.
Viewing an apartment serves to prevent fraud and ensures that the tenant is informed of the unit’s condition, which is rarely rectified prior to move-in.
Conduct Basic Research
When considering an apartment, take some time to do a search. Google the name of the management company, and check out their catalogue. It will let you know if the agency is legit or not.
When you can, visit the rental and speak with the current tenants. This will let you speak to the current tenants outside of the presence of the landlord to find out how the landlord/ agent treats their tenants.
Using a Licensed Real Estate Agent
Licensed real estate agents manage many rentals in Kenya, and it is usual for landlords to have their own agent, particularly in high-rent areas.
Working with a qualified agent will help you reduce your chances of getting scammed. Furthermore, if you are duped, you can always hold the agent accountable.
Use our services at Continuum Favour Properties before signing that rental contract to ensure everything is in order for you.
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