Finding a new property can be both stressful and challenging. There are many reasons why people chose to rent a property. Short term commitment is suitable for many young couples and sharers, who may not be capable of keeping up with hefty mortgage payments, in the current economic climate. Property rental is a competitive market and it is not uncommon for individuals to feel pressured to secure the perfect property.

1. 1 © www.frontlinemagazine.co.uk Scam Alerts 2014
Frontline Magazine Scam Alert Service
Avoid Getting Stung by Rental Scams
Finding a new property can be both stressful and challenging. There are many reasons why people chose
to rent a property. Short term commitment is suitable for many young couples and sharers, who may
not be capable of keeping up with hefty mortgage payments, in the current economic climate. Property
rental is a competitive market and it is not uncommon for individuals to feel pressured to secure the
perfect property.
"These scammers hope people will cut corners and be willing to pay up-front to secure a property. If
you've seen three flats and been pipped at the post each time, you might just do it," said a spokesman
from Pimlico Flats a lettings agency based in London.
Fraudsters commonly try to swindle tenants who are eager to put down a deposit with a generous sum
of cash. Cons of this kind are particularly rife in cities and by and large, most will advertise online and
solely communicate with victims by email.Typically, scammers will push people into transferring sums of
money via websites that offer zero purchase protection such as Western Union and MoneyGram.
Usually, the money must exchange hands before a move in date can be scheduled. After this, it is in
most cases found, that there is no property or many other individuals have also been promised the keys
to the perfect flat or house.
There is a general trend of an increasing number of cases regarding these sophisticated scams. In 2010
alone, the Property Ombudsman received 5000 complaints. The majority of deals were appearing in
London and North-East England and three quarters of complaints were mainly filed by students and a
high number of foreign people. Housing Charity Shelter has conducted a survey to identify the scale of
the problem and uncovered that around 1 million people have been affected by rental trickery whilst
only 487 rogue landlords were prosecuted in 2013.

2. 2 © www.frontlinemagazine.co.uk Scam Alerts 2014
Frontline Magazine Scam Alert Service
Harry Harris and his friends were recent graduates and after a lengthy search process, spotted a
property listed on Gumtree.com. After replying to the ad, a Nigerian man contacted the prospective
tenant exclaiming that he could not attend a viewing in person and would send photos of the property.
He requested that the money for the deposit was transferred immediately. The boys were alarmed at
this proposition and were hesitant to pursue the property any further.
Following this the graduates were contacted by a man who claimed to be in possession of a suitable
property within Central London. A viewing was arranged and two of the group attended to inspect the
premises.
“The man seemed entirely plausible and the place seemed fantastic. Then we all met a woman who said
she was the estate agent. These people were grade-A actors," stated Harris.
Keen to move in as soon as possible, the boys agreed to pay typical fees of a deposit and one month
rent, which had been requested in cash. Once the cash had exchanged hands and keys were obtained, it
was discovered that the keys did not fit the locks. After some research, the property was found to be
listed with an established estate agent, with much higher rental fees. In total £1,600 was taken unjustly
from the prospective tenants.
On another occasion, a human resource manager Madeline Cox had found a flat which was determined
as very cheap for its location. Corresponding with the ‘landlord’ on Gumtree.com, she spoke with a man
who said he was currently residing in Estonia and would need someone to rent the flat out whilst he was
away. Nonetheless, the ad looked completely genuine and Miss Cox was enthused to view the property.
In order for this to go ahead, the scammer then demanded £300 to cover a flight and attend a viewing.
"He was aggressive, saying he'd had a wasted journey the previous month to show around a prospective
tenant who hadn't turned up. He wanted the £300 as a gesture of good faith," says Cox.
It was again later realised that the property listing was a duplicate of a legitimate estate agent, with a
higher rental charge. Luckily, Miss Cox had chosen not to proceed with the transaction.
More recent rip-offs relating to rental have involved the landlord demanding proof of income or
affordability, before a viewing is possible.Tenants will send a payment either to themselves, a friend or a
family member and as instructed provide evidence of the transfer in the form of a receipt. The landlord
reassures them that the money is secure but when an effort is made to retrieve the money,it has
disappeared.Phantom property is often a common factor in these types of scams.
One student lost £1,800 after being asked to transfer it to a friend. When the sum was found to be
absent, she contacted the organisation who had performed the transfer on her behalf. The so called
‘landlord’ had showed up in person to collect the money with the correct transfer code and
corresponding identification. When the student appealed for help, Police investigations could not go
ahead as there was inadequate information supplied regarding the collection of the payment. Speaking
with the transfer agency a second time, it was made clear to the victim that data protection would

3. 3 © www.frontlinemagazine.co.uk Scam Alerts 2014
Frontline Magazine Scam Alert Service
prevent the release of such information and that a crime reference number would have to be obtained
in order to bypass security procedures.
Provision of receipts to anyone is as risky as handing over your PIN number to a stranger and therefore,
anyone who does so will find it extremely difficult to recover funds. Transferring money is often an
instant and simple process which allows funds to be moved worldwide and can be easily manipulated by
preying individuals.
Rental scams have presented themselves in many forms in the past. After already securing a deposit,
people have also been cheated by claims that they would only be able to move in subject to
‘satisfactory’ references. Some scammers have excelled in contacting employers and asking intrusive
questions. When the victim becomes suspicious, on occasion, a partial refund is issued whilst offenders
protest that the remaining sum is for referencing fees and telephone calls. In other cases, the
referencing process was failed with no apparent cause.
In a legal sense, the contracts created with the former individuals do not break the law; a partial refund
of the deposit could be proven as reasonable. Although, the amount deducted must reflect the amount
of time spent checking references and landlords would have to provide evidence of this activity, if legal
action was instigated. Those receiving partial refunds have consulted the local police only to be told that
it is a ‘civil matter’ and the police were not willing to investigate any further.
"Money transfer, used in any situation other than to send money to someone you know, is not secure. It
should never be used as a way of proving funds or as a method of payment to someone you don't
know," cautions Citizens Advice consumer affairs policy officer Susan Marks.
In the past, victims of such crimes have reported landlords to the appropriate websites and the
advertisement has been successfully removed from the internet. But personal ad websites, inundated
with millions of users, do not have the capability to prevent repetition of these scams and need to be
notified in order to crack down.
“Gumtree.com is very much a community-based website. As such, we rely on the feedback of our users
to keep it as safe as possible,” said a Gumtree representative.
In order to protect yourself from rental rip-offs you may find the following hints useful;
1. Never pay a deposit upfront without viewing the property first and meeting the landlord or
estate agent.
2. Do not provide transfer details or proof of transfer to anyone.
3. Do not agree to transfer money to prove your income.
4. Obtain references from employers or previous landlords as it may be possible to avoid fees.
5. Refrain from paying any money until a contract is provided and you are happy with the terms.
Always read the small print.
6. Check the Land Registry to find out who owns the building, you can do so at
www.landregistry.gov.uk

4. 4 © www.frontlinemagazine.co.uk Scam Alerts 2014
Frontline Magazine Scam Alert Service
7. All registered landlords participate in deposit protection schemes, these are designed to help
tenants recover a deposit providing that they meet the terms of the tenancy, pay rent and bills
on time and the property is not damaged.
8. When moving in, create an inventory of the state of the property and take photo evidence if
necessary. This will ensure that you are not charged for any damage that was not as a result of
your residency. The evidence can then be referred to in case of a dispute, when the tenancy
ends.
9. If you do consider making a transfer, details of company credentials are displayed on the
Financial Conduct Authority website.
10. If renting privately, check your landlord is accredited with your local council. This means that
they have met a specified standard in the service and property that they provide. To achieve this
status, initially the property will have been inspected by the appropriate local authority or
landlord scheme.
Over 100 local councils have showed their support in Shelters ‘Evict Rogue Landlords’ Campaign to raise
awareness of Rogue landlords. A List of participants can be found on the Shelter website. There is even
an option for those who feel strongly about the issue to represent their own council, if it is not listed.
Individuals can do so by signing a statement of support. Positive action has been made since the
campaign was initiated, there is now a government team dedicated to investigating rental scammers.
Also, 6.6 million pounds has been distributed to councils to alleviate the problem and the cap on fines to
perpetrators has been lifted.

5. 5 © www.frontlinemagazine.co.uk Scam Alerts 2014
Frontline Magazine Scam Alert Service
Overall, finding a new rental property is often a tedious process. Tenants should resist temptation to cut
corners, as they may find themselves vulnerable to rental scams and rip-offs. Phantom properties,
untraceable transfers and overseas landlords are the tricks used in this fraudulent trade. By exercising
caution and following the guidance provided, it is possible to avoid such an attack. Fundamentally, if a
property seems too good to be true, it almost certainly is.
Frontline Magazine and its online blog contains a large amount of key information and stories about
current criminal behaviour. Frontline is also a useful point of reference for the authorities, they are kept
abreast of current criminal activity.
Follow us for Stay Safe: