Rental scams on the rise

Prospective tenants desperate to crack into Geraldton’s tight rental market have again been targeted by scammers, who are trying to make off with their cash through fake property listings. Geraldton’s Activewest Real Estate principal licensee Phil Sorgiovanni said the company recently became aware one of its listings had been duplicated on to the online trading site Gumtree. He said in this case, and many others, a real property was advertised for below the actual asking price, making it look like an attractive option for those looking to rent in the area. “With the tight rental situation at the moment, people have been desperate to secure a property and scammers appear to be taking advantage of that,” he said. “It has no impact on us as a business but we are concerned for our clients and the general public. “It’s very difficult for us to track every platform where these listings may be posted because there are so many out there, so we do rely on the public to report these instances.” WA’s rental market plunged into crisis late last year, with the Real Estate Institute WA reporting listings across the State had fallen to below one per cent for the first time in 40 years, while Geraldton’s dropped to 1.2 per cent in December. Scammers have been targeting the city’s property market since at least November, when the Department of Mines, Industry, Regulation and Safety was alerted to a scam in which someone claiming to be an engineer who had moved overseas said they were looking to rent out their Geraldton home for just $150 a week. Geraldton’s median unit rental price per week is $200. The scam message was accompanied by photos which, on later investigation, appeared to have been copied from a legitimate listing with a local real estate agent. The scammer asked how much rent the would-be tenant was willing to pay in advance, which a Consumer Protection spokesperson said made consumers desperately looking for somewhere to live in a tough market vulnerable. DMIRS was aware of 38 victims across WA who have lost $37,560 to rental scams last year, an 83 per cent rise on 2019’s figures when four victims lost $6440 in the whole 12-month period. Prospective tenants can protect themselves by being wary of properties being offered for well below current rental value; only dealing with landlords they can meet face-to-face or with a licensed real estate agent; and always inspecting the property before signing a lease agreement. A Gumtree spokes person said the safety and security of its users was its main priority and they encouraged users to take precautions when trading online. “It’s important that tenants take precautions and we encourage our community to always avoid paying bond or rent for a property before it has been viewed, and check that the real estate or landlord is legitimate before sending any money,” they said. “We work on a report and take-down process, and encourage users to report any suspicious listings that contravene our policy guidelines via the ‘Report Ad’ function, so that we can help keep the community safe for everyone. “Our help section on real estate provides tips on how to have a safe and successful experience, and reminds our community to be vigilant when using any online marketplace.”