PICTURE: PEXELS/ HOUSE
The rental market in South Africa is currently navigating a treacherous landscape filled with fraudulent property scams that are ensnaring both tenants and landlords in their deceptive web.
With the rise of digital platforms, numerous scams have emerged, exploiting the vulnerabilities of unsuspecting individuals desperate for housing.
According to a recent industry report, online rental scams are among the most prevalent forms of property fraud, costing hundreds of South Africans their hard-earned money every year.
As the economic climate continues to squeeze both landlords and tenants, falling victim to such scams can yield devastating financial consequences.
“Fraudsters are getting more creative, and it’s easier than ever to be tricked into paying a deposit for a rental property that doesn’t even exist,” warned Pearl Scheltema, CEO of Fitzanne Estates.
“It’s not just tenants who are at risk; landlords are also being targeted by scammers posing as trustworthy tenants, only to default on payments and disappear.”
Pearl further warns that many of the fraudulent rental schemes follow a similar playbook and one common tactic sees swindlers advertising non-existent or already-occupied properties online at irresistibly low rates to lure in unsuspecting tenants.
“Once potential victims express interest, they are pressured into paying deposits and advance rent before even stepping foot inside the property. Only later do they discover that the listing was a mirage.
“Other scams are even more insidious. In these instances, criminals impersonate legitimate estate agents, utilising professional-looking emails and counterfeit credentials to create a façade of authenticity. Some even go so far as to arrange property viewings using stolen keys or secure short-term accommodation, further intoxicating their web of deceit,” Pearl said.
Pearl further added that landlords aren’t spared from this epidemic either. “Some fraudsters masquerade as prospective tenants, providing fake proof of income and references to secure rental agreements. After gaining entry, they default on rent and vanish, leaving landlords grappling with costly eviction processes.
“Alarmingly, some criminals resort to subletting the property to multiple tenants, simultaneously collecting rents from unsuspecting individuals before disappearing altogether.
“To evade such scams, tenants should opt for rental agencies that offer a structured, legally compliant, and fraud-proof rental experience,” Pearl advised.
Pearl added that rental agencies play a pivotal role in helping landlords navigate the legal complexities of property leasing, ensuring that lease agreements are robust enough to protect their interests.
“In the event of a dispute, these agencies provide valuable expertise on eviction procedures and conflict resolution,” she said.
By acting as intermediaries between tenants and landlords, rental agencies can also eliminate common risks, such as:
- Fake listings: All properties are verified before being listed.
- Fraudulent deposits: Payments are securely managed through legitimate trust accounts.
- Unvetted tenants: Background checks are conducted to ensure tenants are responsible and financially stable.
First published by Cape {town} Etc
Compiled by Sibuliso Duba
Also see: Homeownership: Renting and buying property
