With low stock and high demand, the UK rental market is currently highly competitive. As if tenants didn’t have enough to contend with when seeking a new home, rental scams are unfortunately becoming more prevalent. These deceptive schemes can leave unsuspecting home hunting tenants out of pocket, homeless and with a sense of violation that can be tough to shake off. To help you navigate this increasingly treacherous landscape, we’ve put together some crucial advice on how to avoid falling victim to a rental scam in the UK.
Firstly, it’s essential to understand what rental fraud entails. This type of scam typically involves a fraudster posing as a landlord or letting agent, who tricks prospective tenants into paying upfront fees, deposits, or rent for properties that either don’t exist, aren’t available, or aren’t theirs to rent out.
Watch Out For Red Flags
One of the most common red flags of a rental scam is an offer that seems too good to be true. In a competitive market, a property listed at a significantly lower price than similar properties in the same area is a potential sign of a scam. This tactic is used to draw in numerous potential tenants and secure multiple advance payments for the same property.
Another tell-tale sign of a rental scam is a landlord or agent who rushes you into making a decision. They may try to pressure you into making an upfront payment without viewing the property or signing a contract. Always be wary of this high-pressure tactic. A legitimate landlord or agent will understand that renting a property is a significant decision and allow you sufficient time to consider your options.
Scammers may also be reluctant to meet in person, often providing a range of excuses. They may claim to be abroad, too busy, or unable to meet due to illness. While these reasons may seem plausible, it’s essential to verify the legitimacy of the landlord or agent before handing over any money.
Another warning sign is a request for cash or wire transfer payments. These methods make it challenging to trace or recoup your money if you become a victim of a scam. Genuine landlords and letting agents will typically use a secure payment method and provide a receipt.
Protecting Yourself from Rental Scams
So, how can you protect yourself from rental scams? Here are some actionable steps:
- Do your homework: Check the average rental prices in the area and be suspicious of any listings significantly below this. Research the landlord or letting agency – established businesses should have a verifiable online presence. Check reviews and ratings where available. Once found online call the landline number advertised and ask to speak to the person you have been dealing with, just to make sure they are based at that office.
- Always view the property: Virtual viewings have become commonplace. However, if possible, insist on a physical viewing before making any commitments.
- Verify ownership: Check that the person you’re dealing with owns the property. This information can be found through the Land Registry for a small fee. Alternatively, ask for a copy of the tenancy agreement and safety certificates such as Gas or Electricity.
- Use a reputable letting agent: Letting agents must be a member of a property redress scheme by law. Check their membership and ensure they’re following the correct procedures.
- Be cautious with payment: Avoid paying by cash or wire transfer. Use a credit card or bank transfer instead, which can provide some level of protection if things go wrong.
- Trust your gut: If something feels off, it probably is. Don’t let the pressure of finding a place to live push you into a hasty decision that you may regret.
What To Do If You Have Experienced Rental Fraud
If you believe you’ve fallen victim to rental fraud, it’s important to report it immediately to Action Fraud, the UK’s national reporting centre for fraud and cybercrime. They have a dedicated page for rental fraud (https://www.actionfraud.police.uk/a-z-of-fraud/rental-fraud), which provides advice and allows you to report the crime.
Whilst the rise in rental scams is a worrying trend, being well-informed can significantly reduce the risk of falling victim to it. Remember, if a rental opportunity seems too good to be true, it probably is. Always do your research, ask for proof, and never feel pressured to make quick decisions or payments.
Stay safe and happy house hunting!
