The short term rental of properties that overlook desirable events such as the New Year fireworks in Sydney and the Australian Grand Prix in Melbourne offer owners the chance to make a lot of quick money. Short term rental is a fast growing business in competition with the big hotels and resort companies that service the tourist trade.
It was inevitable that it would also attract the scammers preying on the vast rental market to satisfy housing needs. Home prices have eased in Australia but demand is strong for rental properties and they are generally in short supply. This is specially true of good quality apartments in prime locations.
It seems that scammers gaining possession of such an apartment on a short term lease immediately offer it on the rental market and pose as either the Real Estate agent or the owner. They are well prepared with very authentic looking identity checks and offering the length of lease desired by applicants.
Often, the lease of the same property is negotiated with several people and in each case a bond commensurate with the property value is obtained and often securing that valuable lease requires months of rent paid in advance to swing the deal. Often the amount handed over by the unwitting renter can run to twelve thousand dollars.
Often, the agreed move-in date is extended with the excuse that renovations are taking longer than expected or because asbestos has been discovered on the property. Usually that serves to allow cheques to clear and money to move from bogus accounts to where it is impossible to trace. It is estimated that losses from this type of scam are running close to eighty thousand dollars each month.
It is a fact of life that some owners of valuable property prefer to avoid Real Estate agents and negotiate leases personally. These scammers go to great lengths to fit that mould and gain the confidence of the people they intend to dupe. Quite often there is the suggested connection to a well known business name which is unaware that it is being used to gain authenticity.
The fact that this scam has received publicity and one scammer will shortly face court will help to make rental customer cautious, but it is hard to see what degree of authenticity is open to potential renters. Enquiries with neighbours are usually less than forthcoming in this very anonymous day and age.
Perhaps that old adage is the best protection renters can use to avoid being scammed. If it looks too good to be true - it probably is ?
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