Scams Affecting Rental Properties: What to Know and Do

Staying vigilant and informed is your best protection against fraud and we wanted to alert you to a common listing scam impacting accommodation seekers in Stellenbosch.

Fraudsters often exploit the high demand for student accommodation by unlawfully using listing information from reputable real estate agencies, including photographs and property details, to create fake rental listings. These fake listings typically appear on popular social media platforms, such as Facebook groups for student rentals or Facebook Marketplace.

Understanding the Listing Scam

In our experience, the scam works like this: the fraudster unlawfully utilises a real estate agency’s professional photography, logo and property details but posts the listing under a different or even fake name, including their own contact information. Posing as an agent from a reputable real estate brand, they deceive potential tenants or their parents into believing they are dealing with a legitimate property practitioner.

Given the scarcity of accommodation in Stellenbosch, the fraudster creates a sense of urgency, claiming that the property will be rented to the first person who pays the deposit. In their desperation to secure accommodation, many unsuspecting victims transfer money into the fraudster’s personal bank account, without ever viewing the property or concluding a lease.

In some cases, the fraudster may go as far as arranging a viewing, Typically they would contact the legitimate agent from whom the listing information has been taken and set up an appointment between the potential tenant and the real listing agent. After the viewing, the fraudster pressures the potential tenant to pay the deposit immediately to secure the rental, continuing their deception.

Many students and parents have fallen prey to these scamsters and suffered financial loss, regardless of whether they actually viewed the property. We have included some information to consider when renting a property that may assist to avoid being scammed.

• Do not pay a deposit to anyone unless you have concluded an official lease agreement facilitated by a reputable real estate agency.
• Verify the agent’s identity: Use services like Truecaller to confirm that the mobile number listed in the advertisement that you are responding to belongs to a certified property practitioner.
• Contact the agency directly: Google the real estate agency’s office number and call them to verify the agent’s contact details and that the agent actually works for the agency.
• Confirm payment details: Always verify banking details with the agent by speaking to them directly via the agency’s official phone number, which you can find on their Google Business page or website. Do not rely on WhatsApp or SMS messages for this information.
• Check the agent’s credentials: Ensure that the agent is registered with the Property Practitioners Regulatory Authority (PPRA) and holds a valid Fidelity Fund Certificate (FFC)
• Assess the social media profile: If the ad is posted on social media, click through to the poster’s profile page. Review their photos and content to determine whether they appear to be a legitimate agent.
• Other factors which may indicate that you dealing with a scamster/fake listing: spelling errors, large advertised pricing differential when compared to similar listings, reluctance to meet or arrange a viewing, no credit information requested or checks performed, you are not provided with a signed Mandatory Disclosure Form, etc.

Disclaimer: The information and content (collectively “information”) contained herein is not to be construed as professional legal advice and is provided as general information. Pam Golding Properties does not guarantee the suitability or potential value of any information. The content is for informational purposes only and you should not construe any such information or other material as legal, investment, financial, or other advice. Before making any decision or taking any action to rent a property, you should consult a certified property practitioner.

Posted by The Know - Pam Golding Properties