How to Avoid Getting Scammed - Tips from a Rental Scam Victim
30 Sept 2024
If you saw our LinkedIn post, you will have seen that we recently had a group of French students reach out to us to inform us that they had been scammed by a property agent. The students had arrived in Singapore and thought they were moving into an apartment in central Singapore, but quickly found out that this actually wasn’t the case and that they were now stranded (sounds dramatic, but once you’re in that scenario, you’ll understand). Unfortunately, these scams happen from time to time, and although Singapore has so many strict rules in place, they do also happen here. Whether you are an overseas student, an expat already living in Singapore or you’re a local; have a quick read about some of our members' stories and how to avoid rental scam when apartment hunting!
Hear from our Member
We caught up with a Casa Mia Coliving member who herself had unfortunately been scammed last year when she was looking for an apartment. The member had come to Singapore in 2019 to do her Masters. At this point was living in student accommodation close to the campus, her university helped her with this process. After this she stayed in shared accommodation for two years before she decided to move into her own apartment. She started apartment hunting all the classic platforms, PropertyGuru, 99co, even Carrousel. Sometimes landlords will advertise directly on this platform, rarely will an agent do this. However, one month after her apartment hunt had begun she found the (seemingly) perfect apartment on Carrousel.
Too Good to be…
The pictures looked amazing, in hindsight maybe too good to be true, and the property agent seemed trustworthy. He gave her his name and even his agent ID number and IC card. She didn’t think to double check if this was accurate as it didn’t cross her mind that someone might give fake documents. The agent told her that nine people were also looking at the apartment and that the likelihood of her securing the place was slim. Looking back at the situation there were a number of things that resulted in her being susceptible to being scammed. During this period, the rental market in Singapore was crazy, rent was soaring sky-high and people were finding it difficult to find apartments at a decent price. Additionally, she believes being told there were so many people interested in the apartment combined with the fear of not getting the place created so much despair that she didn’t think to double check everything.
The Scam
In order to secure the apartment and get ahead of the other people (this should already have been the first red flag) she was asked to pay the deposit upfront - before seeing the property. He had "sent ownership documents, checked the IRAS website together and he sent the tenancy agreement through an “agency” (logos and ID numbers used in the agreement)". Upon reflecting, it did raise red flags to her when he asked her for the deposit immediately but everything else checked out so she wasn’t too concerned. She transferred the deposit over the weekend. The following day she had messaged the agent to see whether he had received the deposit, no response. She waited another couple of hours and sent another message. Still no response. She then decided to contact the agency, that he supposedly worked for, to inquire about the agent. Their words were “I don’t see this number in our database”. She immediately went to the police department and shared all the information she had, all the files she had received, the carousel details and all of the WhatsApp chat history. They also told her to go to her bank but fraudulent transactions take time to solve and in most cases you will not get your money back. She still hasn’t received her money and most likely won’t.
The police, in a nearly parental way, reminded our member “don’t buy things you don’t see”. If it is not a reputable company and you are just talking to one agent you need to view the house to make sure that it actually exists and is available to rent and that nobody is already living there.
For the future…
These cases do happen from time to time and the main takeaway we have from this is that you should be aware this can happen and just double check everything before a payment is being made. For example, paying to get ahead of a “queue” is a very uncommon practice. A deposit will only be asked for when you have signed a contract and will usually be one or two months worth of rent. You can find more about common/uncommon practices here: https://www.propertyguru.com.sg/property-guides/singapore-property-rental-a-guide-for-tenants-and-landlords-9684
Our Top Tips on How To Avoid Getting Scammed (Rental Edition)
If there are any tips you can take from this blog, it’s these:
- Make sure you are dealing with a reputable company, not just one single person!
- This also means that you are better off using a reliable website rather than finding apartments on social media platforms. It is very easy for people to pose as someone else on social media platforms.
- We all know Singapore loves their rules. Here are some of the basic rules when it comes to accommodation: https://goodmigrations.com/city-guides/singapore/housing/ if the company or agent are suggesting things such as leasing for less then 3 months or allowing more than 6 pax to live in one place, there is a high chance that they are operating illegally.
- Additionally, if you are browsing for accommodation on a reliable website you can check out if they have Google reviews! These reviews are the best indicators of what a company is like, so we suggest having a thorough read through of them.
- If you are coming to Singapore for studies you will most likely have a help team at your university. Ask them if they are partnered with any accommodation providers (for example, Casa Mia is partnered with a few universities around the country) and the likelihood that they will recommend reputable companies is very high.
Are you looking for a room?
Whilst we've got your attention, are you looking to rent a room? Look no further! Casa Mia is your one stop solution; we offer affordable, flexible living for young professionals, with all-inclusive rent including weekly cleaning and maintenance, as well as a warm and welcoming community! You can find all of our homes here!
