Renters beware: Scam artists are building a house of cards in the real estate market!

In the quest for a new place to call home, Australians are navigating a challenging rental market, where the demand often outstrips supply.

This has led to a surge in rental scams, with two families recently falling victim to a sophisticated con that left them both homeless, and $10,000 poorer.


The scam operates by exploiting the desperation of potential tenants, and creating fake property ads, often by copying legitimate listings from real estate websites, or using outdated ones.

They then entice eager renters with these too-good-to-be-true offers, pushing them to sign forged tenancy agreements and hand over substantial sums for bonds.


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Australians were warned against social media ads that might be part of a rental scam after two families lost $10,000 each to scammers. Credits: Shutterstock


Real estate agent Caleb Reis shared the unfortunate tale of two families who were duped by this scam.

‘They, unfortunately, paid for the property, bond, and the holding deposit, and accepted the property sight unseen. [They’d] signed what they thought was a legitimate lease agreement, came to move-in day, rocked up to the property and there were other occupants,’ Reis explained.

Reis highlighted that this type of scam has become more prevalent in the last six months; not just in Australia, but also in the US, where the Federal Bureau of Investigation (FBI) reported over 11,000 real-estate-related complaints in 2022, with losses exceeding $396 million.


The current rental crisis has created a fertile ground for such scams, and it's essential to approach rental ads, especially those on social media, with a healthy dose of scepticism.

It is advised that before committing to a property, insist on seeing it in person or request a video walk-through to verify that the property matches the images advertised online.

Renters are also discouraged from submitting a bond or paying advanced rent until they've confirmed the legitimacy of the property.

Additionally, it is suggested to conduct an online search to confirm the legitimacy of the listing, and reach out directly to the real estate company to validate the information provided.


During the COVID-19 pandemic, scammers preyed on vulnerable Australians seeking property, leading to over 500 reports of rental scams, and more than $300,000 stolen between January and September 2020.

The Australian Competition and Consumer Commission (ACCC) Deputy Commissioner Delia Rickard warned that these scams could result in the loss of more than just people’s money.

‘The loss of personal information through rental scams is becoming more common, with scammers requesting copies of identity documents such as passports, bank statements or payslips,’ Rickard cautioned.

‘Once a scammer has your personal information, you are at risk of being targeted by further scams or identity theft.’


According to the ACCC, a staggering $3.1 billion was lost to scammers in Australia in 2023, marking an 80 per cent increase from the previous year.

Scamwatch advised to be cautious of scenarios where you're asked to pay a bond or advanced rent before confirming the property's authenticity.

If you suspect you've been scammed, it's crucial to act quickly:
  1. Contact your bank immediately to halt transactions, and prevent further monetary loss.
  2. Report the scam to Scamwatch, and file an official police complaint.
  3. Be wary of follow-up scams, particularly those claiming they can recover your lost funds. Scamwatch notes that one in three scam victims are targeted again.
  4. Seek support for yourself. Financial counsellors, BeyondBlue on 1300 22 4636, and Lifeline on 13 11 14, offer resources and crisis support to help you cope with the aftermath of a scam.
For identity protection and recovery assistance, IDCARE offers services to mitigate the damage caused by the misuse of personal information.


In the wake of recent scams targeting renters, it's crucial for individuals to stay vigilant when seeking rental accommodations.

These scams, as evidenced by the unfortunate experience of a couple losing a huge amount of money to this sophisticated rental scam, serve as a stark reminder for renters to verify the legitimacy of rental properties before making any financial commitments.

As the prevalence of such scams continues to pose risks to renters, it's essential to remain informed and proactive in safeguarding against fraudulent schemes.
Key Takeaways
  • Australians seeking rental properties were warned about social media ads that might be part of a scam, following incidents where families lost $10,000 each.
  • Scammers are using the current rental crisis to lure victims with fraudulent advertisements, convincing them to pay bonds and fees for properties they haven't seen yet.
  • Real estate agent Caleb Reis highlighted that these scams have increased over the last six months, and urged potential tenants to verify property ads and avoid paying without proper validation.
  • People were encouraged to report scams to authorities, stop any ongoing transactions, and seek support if they have been victimised, with Scamwatch and other organisations providing assistance.
Have you or someone you know encountered a rental scam? What are your tips on how to avoid or protect yourself from them? Share your experiences and suggestions in the comments below!
 
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Given there is very little information on this article to validate said claim(s). ie. no indication of what State or any comments about the 'victim' sighting the property. I think it's a made up story. Absolutely no doubt about scammers being out there. But, this is a story straight off book of A Current Affair so called 'journalism'. I do miss the days of the The Truth 'newspaper' where these types of stories were just made up by a round table of what can we say happened this week and the gullible readers will just believe it's true. Only thing missing was the Go Fund Me reference.
 
This is definitely happening, just had friends looking for a rental. Upon enquiring about a property (that had previously been advertised ), friend informed the poster that she thought this was a scam. The poster said, wasn't their property and was acting as a go between. Yes, was reported! The scammer also advertised the house at a slightly cheaper rate then the official ad, house had also been leased a couple of weeks prior.
 
Why would you pay a bond and rent in advance for a property you haven't seen.
I understand people are desperate, but that would be utter stupidity
Maybe an interstate rental. My son and his family will be moving states soon and will be looking for a rental that they will probably be renting sight unseen
 
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Reactions: barbaranne
Why do people still fall for these scams? With all the publicity about these and other frauds, I don't see how people are still falling for them.
 
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Reactions: Ashmenou and Jennie
what happened to physical seeing the property. When I trying to leave an abusive partner, it was very hard to look and not let him know I was leaving. There was a property I want to see but the times to view wasn't acceptable. I ask for them (real estate) to speak to the owners about my problem, told no. I said I take it unseen's as I need get out, No. I ask if my father could look, again no. I had to physical walk thru the property, and this was over 20 years ago.
 

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