Renting safely: how to spot a rental scam

The golden rule

Never pay a deposit, rent or “holding fee” before you have viewed the property in person and signed a lease. Almost every rental scam depends on getting money from you before you have seen the place or met the person. If you hold to this one rule, most scams cannot touch you.

How rental scams usually work

A scammer copies the photos and description of a real property, often from a genuine listing, and advertises it at an attractive rent. When you make contact, there is a reason you cannot view it yet, and a reason you must pay now to secure it. Once you have paid, the “landlord” disappears.

A newer version targets genuine deals: a criminal intercepts the email conversation between a tenant and a real agent and sends “updated” banking details. The tenant pays the right amount to the wrong account.

Warning signs

• The rent is well below what similar homes in the area cost.
• The “owner” is overseas, working away or otherwise cannot meet you, and offers to courier the keys after you pay.
• You are pressured to pay quickly because “many people are interested”.
• You are asked to pay into a personal bank account, by e-wallet or cash send, or in cash to someone you have not verified.
• The person will not give a full name, an ID or proof of ownership, or the agency cannot be found.
• The same photos appear in another listing under a different address or name. A reverse image search can show this.
• Banking details change by email or WhatsApp after you have agreed terms.

Check the agent

Anyone who rents out property for others in South Africa for reward must be registered with the Property Practitioners Regulatory Authority (PPRA) and hold a valid Fidelity Fund Certificate. You can check an agent and agency on the PPRA’s website at theppra.org.za. A registered agency must keep tenants’ deposits in a trust account, and the Fidelity Fund exists to protect the public against theft of trust money by registered practitioners.

Call the agency on a number you found yourself, such as on its own website, not the number in the advert or the email, and confirm that the person works there and that the property is on their books.

Check the owner

If you deal directly with a private landlord, ask to see their ID and a recent municipal rates account for the property in their name. Ownership is recorded at the Deeds Office, and a deeds search, which conveyancers and several online services can do for a small fee, shows who the registered owner is. Meet at the property, and make sure the person can let you in.

Paying safely

When you have viewed the property and signed the lease, pay by bank transfer into an account in the name of the registered agency or the owner, so there is a record. Before paying, confirm the banking details by phone with someone you have met or a number you have verified, especially if the details arrived by email. Keep every receipt and message.

If you have been scammed

Contact your bank immediately; the sooner they know, the better the chance of stopping or tracing the payment. Open a case at your local police station and keep the case number. If the person claimed to be an agent, report them to the PPRA. If you saw the advert on My Plekkie, tell us so we can remove it and warn others.

This is general information, not legal advice. Start your search with listings from agencies you can check, and take your time.