Key Points
- Scammers have infiltrated major property websites.
- Community groups say international students are most vulnerable to fall victims to rental scamming.
- The real estate industry is urging agents and tenants to be extra vigilant.
For Tasmanian couple Cody and Jaiden, the search for a place to call home has been nothing short of a struggle.
After countless inspections, application submissions, and rejections spanning almost two years, the couple thought they had finally secured a home - only to find out that was far from the truth.
Unable to reach the agent for a house listed on Realestate.com, Cody took his chance at contacting the supposed owner of the same property listed on Facebook.
"It was exactly the same description, exactly the same photos, it had the watermark in the photos from the agency, he requested documentation that would normally be requested for rentals," Cody said.
"He even did up an application form that looked fairly similar to other ones I've filled out before."
I guess in the desperation of it we were kind of oblivious to some red flags.Cody
After several message exchanges, the couple was delighted to be offered tenancy and was asked to pay bond and two weeks rent, more than $3,000 upfront, to seal the deal.
But it was only after the owner asked for an additional two weeks rent before the couple became suspicious of the listing's legitimacy – later finding out that they were indeed scammed.
"It's hard especially in the rising cost of living times to earn that money back, it's not just one pay cheque, it's almost two months' worth of pay cheques for us to set that aside again," Cody said.
The couple were scammed after contacting the supposed owner of a property listed on a rental site through Facebook. Source: SBS News / Kerrin Thomas
Professional scammers infiltrate into major property markets
The REA Group, owners of Realestate.com, confirmed a small number of ‘For Lease By Owner’ fraudulent listings have landed on their website and other property platforms.
A spokesperson from the group said it was "incredibly concerning" as security was "an absolute priority".
"We always act swiftly to remove any fraudulent listings that we identify, and alongside our customers, we proactively inform renters who may have unknowingly inquired on a fraudulent listing," the group said in a statement.
The president of the Real Estate Institute of Australia (REIA), Hayden Groves, said agents must make sure they’re fulfilling their obligations to ensure the person claiming to be the owner of a property is who they say they are.
"Real estate agents are on notice after this particular scam activity, making sure that they remain vigilant, and conduct themselves in a professional manner that mitigates the possible risk to the consumer and the remaining public," Groves said.
ID-CARE, a not-for-profit identity and cyber security service, said they’re handling over 700 cases of rental scamming, with a total of $117,143 lost since the beginning of the year.
International students vulnerable to rental scamming
Peter Doukas, chair of the Ethnic Communities’ Council of NSW, said it had noticed a surge in .
"I think it got worse after COVID, and now that housing is such a crisis, particularly in our large cities, that problem continues to worsen," Doukas said.
Asal, an international student from Uzbekistan said finding a place to live was extremely difficult, despite extensive research before arriving in Australia.
"It was really hard. I was looking through every single rental website, every available source, every day for several hours. I was scheduling many many inspections," she said.
Asal was lucky to catch on quickly that she was being scammed.
She spoke to the owner of a place in the city that looked really nice, for a good price and everything seemed legitimate.
"Since I was in the city, returning from university, I decided to try, go and see that place from the like outside the building check with that if it's real.
"I spoke with the concierge there and after several calls, it turned out to be that the owner of this place is not renting that place. This apartment is not for lease and it's all a scam."
Calls for more protection against rental scams
Doukas said several measures need to be implemented to tackle the issue.
"Providing students with their option in their own language to get them to a level playing field with Australian students that looking for rental accommodation," Doukas said.
He said considering the financial contribution these international students bring to Australia, educational institutions should invest in housing and explore opportunities to expand into the regions.
"The growth of rural and regional centres of learning is in my view significant and it also introduces international students to another part of Australia that they don't necessarily see on postcards," he said.
This would ultimately relieve housing pressures in , he added.
How to spot red flags
Experts are urging individuals to be extra vigilant as scams grow.
"You've got to make sure you're physically seeing the property before you make a commitment to lease or buy," Groves said.
Cody said you can pick up on clues by how the seller operates.
Cody and Jaiden have now been forced to consider alternative housing options, such as moving into a share house with another couple. Source: SBS News / Kerrin Thomas
With , high-priced rentals, and a rising cost of living crisis, Cody and Jaiden have now been forced to consider alternative housing options.
"We simply just do not have the finances to be able to afford another bond and rent straight up," Cody said.
"Unfortunately, we're now forced into exploring a share house option with another couple."
