The Property Ombudsman, a professional body of which Northfields is a member, released some figures regarding scams that should strike fear into the hearts of prospective tenants - during 2010 over 5,000 tenants were victims of rental scams. The majority of these scams were conducted online where it is easier to fool people, however, there are a number of scams which occur face-to-face.
What to Watch Out For
Here are some of the common scams that as a tenant you should be aware of:
1) Let and run
This scam is of the face-to-face variety with a con artist breaking into a vacant property and pretending to own it. The con artist then tries to rent the property out, secures a deposit from the tenants plus the initial rental payment and then absconds with the money.
2) No need for a deposit
Beware of any landlord who says they do not need a deposit. It may seem appealing to have this fee waived, but the scam in this case usually involves a guarantor who is liable for any rent is unpaid or for damages. Without the protection of the Tenancy Deposit Scheme which should by law protect a tenant's deposit, the landlord will then hand the guarantor an expensive bill for damages to the property.
3) Unprotected deposits
Since 2007 the Tenancy Deposit Scheme has protected a tenant's deposit. All deposits must be registered and held by the TDS (The Dispute Service). However, despite this regulation, there are still many landlords who are not fulfilling their legal obligation. A protected deposit ensures the landlord cannot keep the deposit without a good reason and helps mediate and avoid disputes between tenant and landlord.
4) Unjustified charges
Some landlords and unscrupulous agents will charge tenants with unjustifiable and unexpected fees. All fees should be set out in the tenancy agreement. If your tenancy agreement contains clauses for charges, then it is worth checking with the unfair terms in the Consumer Contracts legislation. Those charges may be void and illegal even though they are are in writing. Another way unscrupulous agents may charge fees is by charging tenants a renewal fee that was not set out in the agreement.
5) The overseas Landlord
The overseas landlord scam is similar to the “Nigerian Ambassador” scam and is often conducted via e-mail. The “landlord” will claim to be from overseas and request the deposit and initial rent be placed in an overseas bank account, only to run off with the money.
Preventing Rental Scams
Here are a few ways that may help tenants avoid falling victim of rental scams:
If you choose to use a private landlord
If you choose to rent directly through a private landlord you will have to do a bit more investigation to protect yourself. Here are a few suggestions.
- Ask the landlord for photo ID e.g. Driving License, Passport
- Ask for details of previous tenants for referencing
- Ensure the landlord is meeting all legal regulations. Genuine landlords will meet all legal requirements, in particular the Gas Safety Certificate and Tenancy Deposit Scheme. If they don't have these things in place, don't use them.
- Ask the local neighbours about the landlord/neighbourhood- this is perfectly normal for prospective tenants
- Take note of how familiar the landlord is with the property e.g. does he/she know where the water, gas and water meters are.
- Always double check the terms and conditions in the Tenancy Agreement and any agreement you may have with letting agents. If there is anything you are unclear about, it’s always best to get it checked by a trained professional.
- Don't pay any fees on a property you have not seen.
If you choose to use the reassurance of a letting agent:
Not all agents are created equal, so a few things will help to ensure that the agent you use will conduct business honestly and fairly.
1) Professional Membership - The lettings industry is not as regulated as many in the industry would like, so it is best to choose an agent, like Northfields, who voluntarily belongs to professional bodies such as the National Approved Letting Scheme, the National Association of Estate Agents and the Property Ombudsman. When you choose an agent who has elected to be a member of one of these bodies you are protected from sharp practice and have a means of complaint via the Ombudsman. Just as you would choose an ABTA travel agent, you protect yourself from scams and guarantee expertise by using an estate agent with membership of these organisations.
2) Industry Awards- Choose an award winning letting agent. The lettings team at Northfields has a multitude of industry awards under their belt (click the link to read more about our awards). These accolades are awarded after a lengthy application and interview process by industry professionals, so by choosing an agent who is recognised within the industry as outstanding, you will be assured that all proper practices will be followed and your interests will be protected.
Avoid becoming a victim of rental scam and contact Northfields Estates when you are searching for rental properties on 0208 567 6660 or register your details online here.
Even if we do not rent properties in your area, we can refer you to a vetted agent in your area through our membership in the Home Sale Network. For help finding a reliable agent outside the West London area contact our relocations manager Shellie Ross on 0208 840 6666 or at shellie.ross@northfields.co.uk




