Beware of residential housing scammers. Stay safe!

Renting a flat is not always a matter of finding a home that is comfy and affordable but also a matter entailing a great deal of potential risks. Rents are quite hefty, thus the industry is an attractive area of activity for criminals that are after your money.

There are new fraud schemes appearing all the time. And every year, more and more people fall prey to scammers. By staying informed, you stay secure, so best practices stipulate that you should educate yourself on the most common fraud schemes in order to be sure to avoid them in the future. Even an experienced fraudster may be detected, if you are cautious enough.

Common Fraud Schemes

The most widespread scheme is when a fraudster rents a flat per day (or for a duration of a couple of days), photographs the interior, and puts the photos up onto an online ad platform, rents it out long term as soon as he can, and vanishes with your money in his pocket. Being in a hurry is the key element here. People may explain their haste by referring to a wide variety of explanations. Some fraudsters argue that they are just about to leave the country for a long time (hence the low rate); others claim they are in dire need of cash; yet another variety of ‘landlords’ allege that the demand in the market is very high, thus you should hurry up. You sign the documents without due diligence, ‘on the fly’, pay the money for the first month, and move in — only to encounter the actual landlord as he visits your flat the subsequent day, surprised to see you for the first time in his life.

Another scheme involves the actual owner — or the owners, to be precise. The tenant pays the rent ahead, and then another co-owner of the flat shows up: a spouse, a sibling, a child, or a parent. The other co-owner objects to the lease, forcing the tenant to move out urgently — and lose his money. Yet another fraud scheme is when the rent is abruptly raised after the first month. But these are pretty ‘lightweight’ schemes and a properly worded and composed agreement will easily fend you from them.

Another fraud option is advance payment. Sometimes you are requested or demanded to deposit a payment towards ‘booking’, for ‘viewing expenditures’, or due to any other reason. Next, the potential tenant proceeds to see his new potential home—only to find out that no such flat exists, or that you should first pay a visit to a shady office or industrial building before you see the actual flat. The scammer takes your money and runs away.

Telltale Signs of a Fraud

Detecting a fraud in the course of tenancy arrangements is a challenge indeed; there are, however, certain recommendations that will allow you to steer clear of scammers. Specifically:

• Scammers never wish to conclude a rent agreement in the written form —particularly when the agreement is not a generic one, prepared by someone else — or, when and if you are accompanied by your lawyer.
• As they place ads on the online ad platforms (or in printed newspapers), scammers tend to include as few details about themselves as possible.
• Most of the scammers have no in-depth knowledge of the district you intend to rent a flat in, they know nothing about the infrastructure, nearest shops, bus/tram stops, local sightseeing landmarks, and other nuances which they should have been aware of, had they been the actual owners.
• If you ask a fraudster what about the neighbours, what kind of people they are, is it possible to get acquainted with them — he will hardly agree to go and meet them and will hardly be able to tell just about anything about them.
• Quite often, scammers offer a rate that is way below the average market rate.
• If your ‘landlord’ cannot tell you when the flat was last refurbished or repaired, where the utility lines are located, how to operate the household appliances and what about the plumbing and the bathroom fitments, then most likely you are dealing with a fraudster.
• Bear in mind the fact that scammers are skilful and talented manipulators: they know how to appear friendly, pleasant, and outgoing, they react in an emotional manner, and dodge all of the tricky issues in the course of your negotiations.

Be sure to verify all of the documents pertaining to the flat, and always read the rent agreement (small print in particular), do test your entrance keys, do not jump at an unusually low rent rate, and never pay any money in advance without any assurances provided. If a flat is the property of multiple owners, then you must obtain a consent from each and every one of them, in writing. Use Google Image Search to check the photos of the flats from ads, do google the address, and try to look the landlord up on social networks. Do not pay money in advance. Do not be afraid to ask questions and seek legal advice when you feel you need it.

Comfort Realty Company is happy to offer you its services to find long term flat rentals and house rentals in Lviv, at affordable rates. We have a database of verified landlords, and our experienced real estate agents and lawyers are here to help you throughout the negotiations, preparation, and finalisation of the rent agreement. We care about your comfort and safety.