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As renters across the country are pushed to their limits amid the rental crisis, authorities in Victoria are grappling with an alarming increase in reports of rental scams where non-existent properties for rent are dangled to desperate tenants through deceptive online ads.
There have been over 61 reported cases of rental scams in Victoria during the first four months of 2023, costing Victorians a total of $125,819, according to detectives from the state’s Police Cybercrime Squad.
Despite the alarming figures, authorities believe that the true extent of the financial damage may be significantly higher, as rental scams are known to be underreported.
“Often, matters of this nature are underreported and that can be for a range of reasons, including fear or embarrassment, and sometimes feeling unsure if an offence has occurred,” Detective Sergeant John Cheyne said.
Young adults aged between 18 and 29 have been particularly vulnerable to rental scams, with over 40 of the 61 reported victims falling within this age range.
The 30 to 39 age bracket accounted for 11 of the reports, while the 40 to 49 and 50 to 59 age brackets had four reports each. One report was received from an individual aged 60 to 69, while another had no age recorded.
According to the Victoria Police, scammers lure victims in with offers of cheap rent for a purportedly available online rental listing.
In order to gain the trust of their potential victims, rental scammers will reportedly often go to great lengths to make their fraudulent listings appear legitimate, including sending photos and videos of a property, copies of land titles, and sometimes even scans of passports, which they claim to be their own.
The grifters will then urge the victim to act quickly to pay a deposit on a bond and one month’s rent upfront.
To create that sense of urgency, Victoria’s police cited reports where offenders would say the property won’t be available for much longer or that they have other people waiting to put down a deposit.
Scammers have also reportedly told victims that they are interstate or overseas, and consequently, the property is unavailable for viewing.
But the ruse doesn’t stop there. Scammers have also been using the identification documents they request from victims, including copies of drivers’ licenses, Medicare cards and passports, to then commit identity fraud and scam others.
Detective Sergeant Cheyne said the scammers are taking advantage of Victorians’ desperation amid the shortage of rental properties.
“An opportunistic scam like this one can end up hitting everyday Victorians where it really hurts, particularly during a shortage of rental properties and a cost-of-living crisis,” he said.
The latest data from Domain showed national vacancy rate remains at its lowest point on record in April, for the fourth successive month, at 0.8 per cent with the vacancy rate in Melbourne at just 0.9 per cent.
“People and families who are simply looking for a place to call home or the vulnerable in our community are being preyed upon and it can have devastating consequences for them,” he added.
Sergeant Cheyne warned people to never sign a lease agreement or make any kind of payment before having inspected the property.
“If something seems too good to be true and the rent seems much too low for the area, it probably is. You should always inspect a property in person, or if that’s not possible, send someone on your behalf,” he advised.
To avoid rental scams, Sergeant Cheyne recommended tenants to do their own research and double-check the property information provided in ads.
“Speak to the person over the phone and arrange a meeting in person if you feel comfortable to do so. You should also consider using a reputable accommodation website that offers added protection.
“If you suspect you’ve been the victim of a rental scam, call your bank immediately and let them know, before reporting the matter via ReportCyber. You should also contact the platform on which you were scammed to inform them of their circumstances.
While the Cybercrime Squad is actively investigating reports of rental scams in Victoria, no offenders have been arrested yet in relation to the scam.
In late 2022, a similar scheme was also brought into the spotlight by WA ScamNet at Consumer Protection, with landlords, property managers and real estate agents in Western Australia advised to take measures to protect photos of their rental home ads to avoid being used for rental scams.
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