by A. Okolo
It’s amazing how people innocently fall into the hands of property scammers. Interestingly, I doubt if anyone can boast of being a guru in detecting these scams which now come in different shapes and forms.
Landlords and tenants have to be very wary about scams these crooks come up with. Many people never consider how easy it is to take advantage of someone looking for a property to rent. Few give it a second thought. Fewer still take the steps necessary to ensure the person they are renting to or from is not a criminal until it is too late. I recently experienced a sublease scam, and therefore I implore people to please dot all “I”s and cross all “T”s.
Avoiding rental scams begins with understanding how they work. Once you know what to look for, your chances of identifying one before you hand over your money will be higher.
Renting with the intent of renting to others: This is not the same as subleasing a property. Scammers now rent properties around prime locations and fast moving areas because they know interested tenants might be desperate to rent the property from them because of the location, etc. They in turn rent out the property to someone else for a much higher rent and fees. Some even parade crooks to act as the landlord and sign all necessary documents. Once you have made payments, some of the scammers handover the property to you and disappear into thin air leaving the tenant to face any issues that might arise with the landlord should the landlord ever surface. This usually happens with standalone properties where it is a bit difficult to verify ownership.
The danger in this is that though the renter paid and has the keys to the apartment, he/she will be occupying the apartment as an illegal occupant and can be sued by the landlord in future as the real landlord has no legal agreement with the occupant especially if fake documents are signed and presented by the scammer. Secondly at the expiration of the occupants rent, should the occupant be interested in renewing, if it is a property the landlord/property management company rarely visits, it then becomes clear to the occupant that he/she has been scammed as locating the landlord for renewal might prove impossible and lead to eventual eviction. We advice renters to ask questions and probe into any property before payment is made to anyone.
Subleasing Properties: Subletting an apartment from the original tenant if the tenant needs to move out before the lease is up is quite common but at the same time risky. A number of people prefer to rent homes this way because they might avoid paying legal and agency fees as well as maintain current rent when lease is up.
Unfortunately, there are laws protecting the landlord in this regard leaving the new tenant to bear the brunt. Individuals looking at renting homes this way should always insist on meeting the landlord and probably sign a new agreement with the landlord. A recent experience of a friend happened quite a while ago when we leased a property from a tenant who had a long lease on the property and was leaving to go back to his country. Though she signed an agreement with the tenant and took over, she didn’t meet the landlord as she was told the landlord was unavailable and will be back soon and postponed her meeting with him. After occupying the property for just six months (while she paid for two years to the original lessee, she was evicted from the property and all our belongings seized and taken to the court. She eventually lost two ways, losing the rent she paid as the previous tenant had gone back to his country and also losing some of her properties.
Always get everything in writing and insist on meeting the LANDLORD, no matter how brief your stay. Make sure all verbal agreements are included in the rental contract including details about deposits, refunds, and what is included in the cost of the rental such as utilities, internet, etc.
Scams through Properties Advertised in Magazines: I will shed light on this using an incident that occurred three weeks ago at Lekki Phase 1, Lagos. A prospective renter bought a property magazine that advertised properties for sale/rent. After short listing a few properties, he called up the agents that placed the adverts and began inspection. He fell in love with a particular property at Lekki Phase 1 where the agent took him round the property which had all doors opened and even the security personnel on duty let them in to inspect. The agent then took him to the purported Landlord leading the client on to pay a two year rent for the property as well as agency and legal fees. The client was told to meet them at the property the next day to pick up the keys. To his great dismay, he got to the property to discover he had been scammed and had lost almost five million naira.
You might say “what a foolish man” but remember this can happen to anyone. Guess what? He did everything right in the logical term; he saw the Ad, inspected the property, met with the purported lawyer and also met with the purported landlord, signed the agreements and paid for the property. So where did he get it wrong?
Here are a few precautions you should take before you pay for any property:
• Ask the landlord to show you evidence the property belongs to him. It might just be a simple building plan, C of O or maybe details of the building stages. However, sometimes, your verbal conversation with the landlord can prove beyond every reasonable doubt that he is truly the owner of the property (sic).
• Do your research; ask as many questions as possible to be fully convinced.
• If a property management company is managing the property, call them and ask whether the person you are dealing with actually owns the property. You may also need to pay a visit to the office of such management company.
• Also confirm if the property management company or law firm is duly registered to do business. In essence can sue and can be sued.
Rental Scam Tips for Property Owners
• Keep a watchful eye on your property. If you don’t live nearby, consider hiring a security man to watch over your property.
• Change the locks frequently if you rent the property often. If your previous tenants kept a copy of the keys, they will always have access to the property.
• Ask potential tenants for references and follow up by checking them.
• Verify your prospective tenant’s employment by contacting their employer.
This may seem like a lot of work but much of it can be done quickly and can also save you money especially at these harsh economic times. If you ask anyone that’s been milked out of their rental fund, they will tell you that proper due diligence is not a waste of time.
We at BLUEHEDGE REALTORS carry out proper due diligence on all properties before they are introduced to the market. We are not unmindful of all gimmicks involved in real estate transactions and hence, it is our utmost duty to safeguard our clients from the risks and hassle that property transaction is known for, especially in this part of the world.
