Attention all Tenants. A new scam has been brought to light by the Deposit Protection Service (DPS) involving property that is advertised to rent on certain private-to-list websites.
Scam artists posing to be Landlords are using sites like Gumtree and are asking unsuspecting tenants to prove that they can afford to pay the deposit and rent by transferring money to a friend or a relative using a money transfer agent.
The Tenant is then asked to send a copy of the transaction receipt to the ‘landlord’ as proof of affordability however, the receipt contains enough private information for the fraudsters to intercept the funds before the victim’s friend or relative can do so.
The DPS, the only custodial tenancy deposit protection scheme accredited by the Government, advises all tenants to ask their landlords how their deposit is protected and recommends that anyone in doubt should seek advice immediately as to whether their funds are at risk.
Kevin Firth, director of the DPS, said:
“For peace of mind tenants can ring the DPS on 0870 707 1707 to find out whether their landlord is registered and their deposit protected. Landlords who fail to register a deposit face being fined up to three times the value of their deposit.”
Commenting on the statement from the DPS, Jonathan Daines, director of LettingaProperty.com, said:
“LettingaProperty.com advertises property to rent from Private Landlords across the UK and we fully support the advice given by the DPS. We would like to re-iterate that Tenants should always check that their Landlord is registered with an approved tenancy deposit scheme prior to handing over any funds. Tenants looking for property to rent on our website are advised to use their private messaging service when dealing with landlords and ideally, should always meet the landlord in person before exchanging any financial information.”
If you have already transferred money, the DPS recommends you seek legal advice. The Deposit Protection Service is the only custodial tenancy deposit protection scheme accredited by the Government. It is provided free of charge, and funded entirely by the interest earned from deposits held in the scheme.
I believe that I have experienced two of the above scam attempts this week (w/c 31/08/09). On both occasions, I have been informed that the landlord lived many miles away, and that I should make a deposit to a friend using ‘Money-Gram’, and then email the details to the landlord.
Both times, I said that I was suspicious and was not about to send financial information through email. Both of these examples were in response to my ad on Gumtree.
This morning (05/09/09), I have received yet another response to my ad which is sizing-up to be the same style as the above two examples. I am deliberately ‘entertaining’ the respondee, whilst investigating if there is anything which I can do to help catch the culprits.
Does anyone know what the best action would be ?
Ron – thanks for bringing this to our attention. You are doing the right thing by not sending any financial info across to anybody you are suspicious of.
There can be a disadvantage of advertising on free to list sites such as gumtree for both landlords and tenants. If a site is offering a free service, there are not many barriers for scam artists as it does not cost them anything to give their scam a go on the site. We have not attracted any scam artists on our site as they would not want to pay to list a property.
You may be better of keeping to property sites where the Landlord does have to pay to advertise their property.
I have been letting property for nearly ten years now and I love Gumtree at present as its free (in my area at least) and I get an excellent response. But sadly these scammers are making many tenants very nervous of all landlords. Here are my tips:-
The ad can tell you a lot about the landlord; if it’s very sparse of any information about the property then that could well be a warning sign. Genuine landlords really want to let their properties and will give lots of information about the property to do this.
In a similar vein speak to them over the phone and ask for details like nearest bus routes, train or tube stations, etc. Size of rooms, what appliances are provided etc. A landlord would know this information easily.
Never hand over any money until you have viewed the property and ask to meet the landlord or their agent at the property. Never hand over any money until you have a receipt and confirmation of home/business or trading address etc.
I ask all my prospective tenants to come to my home office to pay the holding deposit, collect paperwork or drop it off. This is as much for them as it is for me. They know where I live; they can see my home/office and see that I am genuine.
A recent tenant applicant asked for a copy of MY driving licence or passport. I thought this was brilliant and in ten years was the first time I’d been asked for it. I also showed her my Data Protection certificate, my Consumer Credit Licence, proof I protect bonds, do gas certs and get EPCs. Any landlord should be able to produce at least some of these and especially for the property you’re applying for – ask to see them.
If you’re in any doubt whatsoever just walk away. There are good genuine landlords out there who will be happy to let to you; take the time to find one of them and keep your money in your pocket until you do.
Lisa
http://www.pipaforum.com/blog
Great advice, thanks Lisa.