Too many people are falling victim to rental scams on a daily basis. These scammers pose as reputable agents working for big name agencies to create a sense of false security. There are many red flags that you can look out for and if you see one or more of these then you should proceed with caution. The following primarily applies to the nationally established Estate Agencies; the bigger brands, who are often the target of such scams.
Marketing on 3rd party websites such as Gumtree or Facebook Marketplace
It is uncommon for Seeff to market properties To Let or For Sale on third party websites. Our primary platform is Seeff.com. The Seeff website can be verified by visiting Seeff website in a web browser. This web address will never change. You can also look for a symbol of a closed lock next to the web address in your browser which indicates that the website is secure. Our listings are then duplicated to Property24 and Private Property. If you are not comfortable using these portals then stick to Seeff.com for added safety. Our agents are listed on this site with a photo so that you can verify their identity and contact information. You can also view their Fidelity Fund Certificate here.
Prices that seem too good to be true
If the price is too good to be true then it probably isn't. You should do market research on areas you wish to live in to get an idea of what the average rental prices are. The fake listings are usually marketed at an unrealistically low price to attract desperate tenants. The scammers take advantage of your desperation to lease such a "well priced" property.
Missing problems from your Credit Report
A few blemishes on a Credit Report are very common. Only a few people have a perfect credit rating. Therefore, if you know that you have some red marks on your credit report, such as a late payment once or twice, or a month you paid rent late, then then this should be discovered by the agent/agency during the credit check. The agent/agency is likely to ask you follow up questions in this regard. If no comments come back from your application, then there is a chance that an actual credit check was not done. Don't be afraid of your credit report and think that keeping quiet on problems will hide them from the agent, especially if the agent does not report back on these problems. A proper credit check will reveal all to an agent, even things you did not disclose in the application.
Signing a rental agreement without seeing the property
There are certainly times when viewing a property is difficult or not possible. Usually when you, the applicant, are moving from another town and it is impractical to drive or fly to see the property. If you can physically view the property then it is strongly encouraged that you do so, for many reasons. If there seems to be many trivial excuses as to why you cannot view the property, then perhaps move on to something else. We recommend a virtual viewing with the agent over a video call if you are unable to do an in-person viewing.
Waiving of / or no Damage Deposit or other fees.
It is very unlikely that the damage deposit or other lease fees will be waived. The deposit is a security held over the property for damages. Whether you are paying rent in advance or negotiating a lower rental amount, the deposit will always be required. Additionally, the agency will charge an admin and/or lease fee.
The Agent as the Landlord
No Estate Agent may be listed on a lease agreement as The Landlord, unless that Agent holds a Power Of Attorney (POA). A lease agreement is a contract between a tenant and a landlord. The Landlord must be listed on the lease agreement as he/she is the registered owner of the property. Unless the agent can produce a signed POA, then the agent may not enter into any agreement on the landlord's behalf.
Banking Details and Trust Accounts
Any Estate Agency that collects and processes rental payments are required by law to receive rental payments into their Trust Account. The Trust Account is specific to Estate Agencies and are opened under the provision of Section 32 of the Estate Agency Affairs Act [EAAA]. You can and should request an Account Confirmation letter from the agency, which must include a reference to Section 32 of the Act. Do note that as from 1 February 2022 the Property Practitioners Act [PPA] replaced the EAAA. Bank letters generated after this date will now reference Section 54 of the PPA.
With a few exceptions it is not to say that the above listed red flags means that you are being scammed, these are merely indicators of a potential scam. Lastly the best indictor of a scam is your gut feeling. If you have the slightest feeling or inclination that things do not feel right about the lease then take action. Go to Seeff, Find a Branch/Agent, and contact the office directly to validate the details of your lease or the banking details.
