How rental scams work

Rental scams prey on individuals searching for rental accommodation, including holiday rentals. One common method involves advertising "phantom rentals" – fake properties showcased with photos and descriptions lifted from legitimate listings. These listings often entice victims with attractive rental prices, desirable locations, or exclusive amenities.

Another tactic involves hijacking legitimate rental listings from reputable websites or platforms and reposting them with altered contact information or photos. This diverts inquiries and payments to the scammer, tricking unsuspecting tenants into believing they're interacting with the real property owner or manager.

Scammers also frequently pressure victims into making immediate upfront payments via untraceable methods like wire transfers or cryptocurrency, often claiming it is necessary to secure the rental.

Furthermore, under the pretence of conducting background checks, scammers may request sensitive personal information, such as bank account details or copies of identification documents. This stolen information is then exploited for identity theft or other fraudulent activities.

Rental scam indicators

By being alert to the telltale signs of a rental scam, you can protect yourself. Here are some red flags to be aware of:

• An ad for a rental seems too good to be true: the price is low, little information is requested, and it is available soon.
• You find a duplicate ad for the same property with different contact details on a trusted site.
• The ‘landlord’ uses high-pressure tactics or a sense of urgency to get the renter to make immediate decisions or payments before they ‘lose the property to someone else’.
• The landlord or property manager is unavailable for in-person meetings or property viewings due to various reasons. There will always be an excuse for them not to meet.
• Requests for funds to be sent via methods that are difficult to trace, such as wire transfers, prepaid cards, or cryptocurrency.

• There is a lack of documentation, with no formal rental agreements, no receipts for payment, or refusal to provide any verifiable information about the property or landlord.

How to avoid rental scams

Do your own research first: search on trusted sites, don’t click unsolicited links, and never send money or personal information without verifying the legitimacy of both the landlord and the property. Use online resources to check reviews, verify contact information, and confirm the property's legitimacy.

Whenever possible, schedule an in-person viewing of the property before committing to any payments. This allows you to confirm its existence and condition.

Insist on a written lease agreement and meticulously review its terms before signing, and exercise caution when encountering high-pressure tactics or requests for unusual payment methods, such as wire transfers or cryptocurrency.

How to report a rental scam

If you encounter a suspected rental scam, report it to us if you have provided any payment or identification information.

Even if you've managed to avoid losing money, reporting is still crucial to help prevent further fraud and assist other potential victims – report the scam to National Anti-Scam Centre (NASC) - Scamwatch.