Post | Wings Real Estate

Beware of Rental Scams: Navigating the Gold Coast Real Estate Market Safely

Joshua Smith Posted on 26 Mar 2024

The allure of the Gold Coast's sandy beaches, vibrant lifestyle, and booming real estate market has always attracted prospective renters and buyers from across Australia and the world. However, alongside legitimate listings, a concerning trend has emerged: the rise of fake real estate listings on platforms like Facebook Marketplace and other classified websites. These fraudulent listings are not only a direct threat to the integrity of the real estate market but also pose significant risks to individuals seeking new homes.

The Rise of Rental Scams on the Gold Coast

Recent reports have highlighted an uptick in cases where individuals, posing as landlords or agents, create fake real estate listings. These scammers are not authorised real estate agents nor do they have any legal rights to the properties they claim to represent. Their primary motives range from collecting personal identification documents to scamming potential tenants by accepting fake rental bonds and deposits. Notably, these deposits are not lodged with the Residential Tenancies Authority (RTA), leaving victims out of pocket and without recourse. In cases where these parties are only pretending to represent a property, you won't be able to tenant the property even if payment has been made, if the lease was not legally executed. In some cases, the suspected scammer may be collecting personal information and deposits from multiple parties for the same property.

In some instances, these fraudulent activities have been identified and removed by platforms like Facebook, with a number of cases being referred to the Queensland Police Service for investigation. Despite these efforts, the problem persists, underscoring the need for potential tenants to remain vigilant. This article attempts to highlight some red flags to look for when seeking a new rental property, along with best practices for tenants to take in order to safeguard themselves against falling victim to scams of this nature.

Understanding the Legal Framework

In Queensland, the real estate industry is regulated under the Property Occupations Act 2014 and the Residential Tenancies and Rooming Accommodation Act 2008. These laws stipulate that only licensed real estate agents can legally represent properties for sale or rent. Furthermore, the RTA plays a crucial role in managing rental bonds and deposits, ensuring they are protected and correctly administered.

Identifying the Risks

The risks associated with engaging with unverified listings on classified websites include:

Financial Loss: Victims can lose significant amounts of money paid as fake deposits or rental bonds. Genuine real estate agents are legislated to collect and receipt funds into trust accounts and are able to issue refunds in certain circumstances. They also deposit bonds with the Rental Tenancies Authority (RTA), which is an independent body designed to keep your deposit safe. Those who create fake classified and marketplace listings have no such processes in place and requests for money to be returned will pose significant challenges.
Identity Theft: Sharing personal documents with scammers can lead to identity theft. We've heard of people being asked for a full 100 points of identity verification, including passports, driver's licenses, Medicare details, Centrelink statements and banking statements. Hopefully this isn't misused, but scammers have been known to apply for loans and other credit facilities using stolen identity details, which can leave victims with debts to repay or negative marks on their credit reports.
Stress and Anxiety: Falling prey to these scams can cause considerable emotional distress. Not only can the victim end up with identity documents in the hands of an unscrupulous individual, but they could be out of pocket a significant amount of money, and could also find themselves without a secure residence if they believed that falsified lease agreement was genuine.

Red Flags to Look Out For

While it's best to search for properties directly on the websites of reputable agencies, or on dedicated property listing sites that identify which agency is representing a property, we understand that people are sometimes tempted to seek out properties on community classified marketplaces. If doing so, here are some red flags that could help to identify whether a listing is fake or not:

Certainly! When browsing property listings on platforms like Facebook Marketplace or similar classified websites, it's crucial to stay alert to potential red flags that may indicate a listing is fraudulent or not legitimately issued by the owner or a licensed real estate agent. Here are some key indicators to watch out for:

Too Good to Be True: If the rental price is significantly lower than other listings in the same area for similar properties, it could be a scam. Scammers often use attractive prices to lure in potential victims. This is especially heinous in the current environment, when affordable rentals can be hard to find. People who post fake listings at discounted prices are taking advantage of tenants in their moment of need.
Urgency to Secure the Property: Scammers may create a sense of urgency, pressuring you to pay a deposit or provide personal information quickly, often with excuses that there are many interested parties and that moving quickly will secure the property.
Requests for Money Upfront: Be wary if you're asked for money before viewing the property, especially if it's for a "holding deposit" or "application fee" payable via untraceable methods like wire transfer or cash apps. Do not pay a bond to anyone who does not appear to be the property owner or an accredited agent. By law, only property owners and licensed real estate agents may accept bonds in Queensland, and they need to issue receipts and deposit those funds with the RTA within ten days.
No Physical Inspections: If the person listing the property is making excuses for why you can't view the property in person (e.g., they're currently overseas), it's a red flag. If you are based in a different city and you're unable to view a property in person, legitimate agents and owners will generally be happy to arrange remote inspections over a live video feed.
Lack of Professionalism: Legitimate real estate agents typically use official email addresses attached to their agency brand, using the same domain name as their website, and their communications are professional. Be cautious of listings with numerous spelling or grammatical errors, or if the contact details seem informal or personal. Very rarely will agents use Gmail or Outlook.com addresses.
Generic or Old Photos: If the listing only includes generic or stock photos, or if you find the same photos associated with different addresses, it might be fraudulent. You can use reverse image search tools to check if the property photos are unique or lifted from other sites, or part of an older listing for the property.
Request for Personal Information or Documents Upfront: Be cautious if you're asked to provide personal identification documents before any formal application process or property viewing. This could be a ploy for identity theft.
Vague or Incomplete Details: Scammers often provide vague or incomplete information about the property or avoid answering specific questions directly. A legitimate listing should include clear, detailed information and the agent should be knowledgeable about the property.
Use of Unofficial Channels: If the communication shifts away from the platform's messaging service to a less secure method, such as a chat service or free email account, or if they avoid using official rental application forms, it could be a sign of a scam.
Unverifiable Owner or Agent: If you cannot verify the identity of the owner or the credentials of a supposed real estate agent through official databases or online searches, proceed with caution. In Queensland, you can find if someone is a licensed real estate agent by using the following search tool:
https://www.qld.gov.au/law/laws-regulated-industries-and-accountability/queensland-laws-and-regulations/check-a-licence-association-charity-or-register/check-a-licence

Always trust your instincts—if something feels off, it's better to err on the side of caution. Taking these steps to verify the legitimacy of a listing can save you from potential scams and the associated financial and emotional stress.

What To Do If You Suspect You Have Been Scammed

Again, as only licensed real estate agents are legally able to represent properties on behalf of owners in Queensland, if you have provided personal information such as passport or driver's license details to a party who is not an owner or licensed agent, this could be mis-used. Similarly, if you paid a deposit to an unlicensed individual, they are unlikely to be holding this in trust or collecting the funds in good faith. As such, you would be within your rights to approach the Queensland Police Service, RTA and/or Office of Fair Trading for advice. You should also report the offending ad to Facebook, Gumtree, eBay or whichever marketplace you saw the property listed, to help ensure that others don't fall prey to the same scam.

Quick Summary: Best Practices for Tenants

To safeguard against rental scams, especially when searching for properties on the Gold Coast, consider the following best practices:

Verify the Agent's Credentials: Always check whether the person you're dealing with is a licensed real estate agent in Queensland. The Queensland Government provides an online licence check service.
Inspect the Property in Person: Ensure you or someone you trust has physically inspected the property before making any commitments.
Avoid Cash Transactions: Be cautious of requests for cash payments or deposits (or cash equivalents such as Western Union). Legitimate transactions will typically go through formal banking channels, usually with trust receipts issued by a licensed real estate agency.
Use Official Platforms: While not foolproof, using reputable real estate websites and well-known real estate listing aggregators that verify contact details associated with listings, such as RealEstate.com.au, Domain and View.com.au, can reduce the risk of encountering scams.
Report Suspicious Listings: If you encounter a suspected scam, report it to the platform and the RTA immediately.
Build Awareness: Familiarise yourself with the common signs of rental scams and stay updated on new tactics used by scammers. Don't allow yourself to be pressured into providing information or funds before you are ready, and do not engage through informal channels.

In Conclusion

While the Gold Coast's real estate market continues to thrive, the rise in rental scams poses significant challenges, and often takes advantage of people during insecure times. By staying informed, verifying the legitimacy of listings, and adhering to safe practices, prospective tenants can better protect themselves against these fraudulent schemes. Always remember, if a rental opportunity seems too good to be true, it probably is. Stay safe, and secure your dream home with caution and due diligence. All the best, from the team at Wings Real Estate.

Disclaimer: The information contained in this article is general in nature and is not to be considered legal or financial advice. It does not take into account your personal circumstances. If you suspect that you are at risk as a result of a dishonest real estate listing, contact the RTA, Office or Fair Trading or Queensland Police Service for advice.