Rental Scams: How to Stay Safe as a Renter

Online scams are on the rise, and property rentals are not exempt. The urgency and high-value transactions involved in renting a property make renters prime targets for scammers. This guide will help you recognize and avoid common rental scams, empowering you to make safer decisions.

Key Statistics

January to October 2024

Reported rental scams
430
Total losses
$2.7M
Average loss
$6,300

Source: CEA Rental Scams

These figures highlight the importance of staying vigilant and informed.

⚠️ Signs of rental scams

Scammers constantly come up with new methods of scamming. Therefore, it is important to learn about the general signs of a scam rather than individual scenarios. Here are common warning signs to watch out for:

1. A deal that is too good to be true

Who doesn't like a good deal? But, be cautious that these so-called “good deals” might be scams.

Scammers often lure victims with deals that seem too good to be true. While great deals exist, exercise caution if the offer seems unrealistic. Always compare the listing with similar properties in the area.

2. Pressure, Urgency, or Intimidation

A scammer's goal is to steal your money. To do so, they may use various psychological tricks designed to manipulate you into sending money to them. Creating a sense of urgency is a common tactic to push victims into making hasty decisions.

Examples include:

  • Claiming there is high demand for the listing and pressuring you to pay immediately to “secure” it.
  • Using guilt or intimidation, such as scolding you for questioning their legitimacy.

3. Something feels off

Scammers often act in ways that deviate from standard rental practices. If something feels off or doesn’t follow the usual process of renting a property, it’s worth investigating further.

Be cautious of:

  • Unusual payment methods. For example, asking you to pay through a link they gave
  • Refusal to meet or show the property in person
  • Deviation from the normal protocol. For example, you may be asked to pay a deposit without signing a proper rental agreement or before verifying the property and landlord's identity.

📝 How to avoid rental scams

Follow these tips to protect yourself:

  • Stay vigilant: report any suspicious activity to our team or local authorities immediately.
  • Avoid paying fees upfront: Never transfer money to secure a viewing or booking without verifying the property and owner.
  • Verify ownership: Request proof of ownership or residency if communicating with direct owners or outgoing tenants.
  • Research property agents: Search for their phone number on the CEA public register. You can also ask to meet them in person to verify their identity.
  • Take your time: If someone pressures you to act quickly, pause and evaluate the situation.

👮🏻‍♂️ What is Hozuko doing to combat rental scams?

A major factor enabling scams is the use of fake identities. Scammers thrive on anonymity, making it difficult to trace their actions.

To enhance safety, Hozuko offers optional identity verification for property owners using Singpass, Singapore's government-backed digital identity system. Listings by verified owners are marked prominently, allowing renters to identify safer options at a glance. While this is currently optional, we encourage all owners to verify their identities. We may require verification for all users in the future as needed.

Indicators for Verified vs Unverified listings

Verified listings

Verified
Owner verified their identity with Singpass

Unverified listings

Owner has not verified their identity with Singpass

What to do if you suspect a scam

If you believe you have encountered a rental scam:

  1. Stop all communication with the individual.
  2. Report the scam to Hozuko’s support team and relevant authorities.
  3. Retain all records, such as messages, emails, or payment receipts, as evidence.

Your vigilance helps protect yourself and others in the community.

If you have questions or need further assistance, don’t hesitate to contact our support team. Hozuko is committed to making rentals safer for everyone.