How to Avoid Rental Scams

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by Ice Artificio • Aug 01, 2017 • General

You have found “the place”. Beautiful location, perfect amenities, fits your budget, it’s quite a catch. But hang on, is it bordering the “too good to be true” status?

The sad truth is that rental scams are prevalent. This is why rental websites ask lessors (the unit owners) government issued identification, contact details, and other verification methods to minimize fraud.

As a potential tenant, it is important to be vigilant even if you are dealing with trusted sites.

Here are a few anti-fraud tips when looking for a place to rent:

Compare Prices in the Neighborhood
Prices in a busy urban city will most likely be the same, give or take a few thousand pesos. If it’s half or less than the average price of lots, it’s time to be a little suspicious and take the time to research more about the unit for rent and the lessor. Maybe a number of amenities are unavailable? Or extra utility or homeowner dues will be added on top of the initially agreed upon price.

Look for Other Properties They Have for Rent
Legit brokers will most likely have more than one unit for rent. Some of them may even have postings in different websites. Look into any other placements they have for rent and check to see if the pictures match the descriptions or if they look like they’ve been lifted off a Google search.

Check Out Their Reviews
One of the perks of this generation is that anybody who has access to the internet can leave a review whether it's a complaint or a compliment. It can even be anonymous. Find out what people have to say and how their experience went. While it is inevitable to find negative comments, finding a mix of both good and bad reviews is a sign that the reviews are legit. Just make sure they have more good ones, and the bad ones are understandable and do not say “scam” or “fraudulent”.

Ask for the Contract
For long-term leasing (6months and above), get a hold of the contract and read it thoroughly before handing out money. There are three things you can learn from the contract alone:

If they cannot provide a contract, it is highly likely a scammer. If they are new lessors, ask them to create one for you. It will protect the both of you and will make the transaction legal and binding.
When reading through the contract and you see errors or words that make it look like it was copied from somewhere, that is a red flag.
Some scams are carried out through contract technicalities. This gives you more incentive to really go through the whole document and review the fine print.

Of course we all want to get the best deal, but if it’s too cheap(or too expensive), it doesn’t hurt to be a little more cautious before giving away that deposit. We are constantly weeding out and screening suspicious listings and units with too many negative feedback. If you do find any doubtful offers , or are wary of some lessor, or if you just want to verify a listing, please do not hesitate to contact us so mediate and verify.

Do you have any anti-fraud strategies when choosing a place to rent? We’d love to hear them in the comments below!

Happy renting! :)

Comments 💬

Steve Russell

It pays to be cautious and your comments make sense. We've all been caught at one time or other...

Eiselle Joy Pascua

Ask directly the administration office the registered owner of the property and/or you may request copy of SPA from the owner if owner is not available. But again I highly encourage tenants or owners to work with professional brokers so that they are protected with legalities since we are talking about huge amount of money per transaction.

Ice Artificio

We agree! It really pays to be vigilant and verify with admin office when in doubt. Please don't hesitate to contact us if you find anything suspicious or out of place :)

Jim Donald

Essential to work with a licenced broker. Check their credentials and make sure they have the owner's authority to rent the unit. You can also check with the building admin office. Never give money to a broker or intermediary - always pay the landlord directly unless there is a notarized Special Power of Attorney giving them the necessary authority. Even then, confirm with the admin office

Leonora Diomangay

I agree Mr. Jim Donald

Robi Zulueta

Noted

Cristina Corsiga

Thanks again

Jasmin Ariola

Yes well noted thank you for the very important infos

Cabel Reginald

Noted

Thanks Rentpad! By the way, Shang Properties just launched a new residential condominium in front of a golf course which you may buy and lease out in the future. Check out theshanglifestyle .com for additional information =)

Helen Hyerim Choi

Yes thank you

Alex Bulanadi

Noted

Raymond Macaya

Agree

Jun Posas

Thank you!

Epifanio Melgar

Thank you

Bel Chan

I am a tenant, had a long term contract in Sea Residences since 2018. The contract was ended on May 20, 2020. I understand I have to wait for a month to get my deposit refund. I contact the broker on June 23 for follow up and she replied me a msg on July 03. Then I never heard from her even though I sms, called, fb messenger and email. Where can i seek for assistant to get my security deposit refund and also to file a case?

Chux Hizon

Hi @Bel Chan- this is a response from one of our experts: "If her broker is a licensed or affiliated to a license broker, she may report it to HLURB as the broker is now violating the RA 9646 'The RESA' Law. But if she don’t want to escalate such issue, she may visit the property management office of sea residences to seek some help or advice. Or if the broker is affiliated to any realty, he/she may report it to the realty where the said broker is connected. He/she has also the option to reached the owner directly."

Myra Canlas

I was a tenant of a studio unit at green residences, taft since Sept 2018 I rented it for my daughter who is studying at DLSU Bec we hurriedly got the unit I was not able to read carefully the contract I signed since classes will be starting just a few days more I thought that the person we were talking to is the owner and bec of our urgent need for a place to stay near my daughter’s school, I followed the instructions of the person in-charge which is to issue 11 PDCs, all of which is paid to cash We renewed the contract last Sept 2019 but the problem started this March when classes were suspended indefinitely. My daughter went home to our province and since March 10 nobody stayed on the unit It was in the first week of June when we tried to get in touch with the person we were talking to - since the first contract we signed. I am asking for a discount on the rent since those were hard times for us all when almost the whole country is under ECQ. It was very hard communicating with her, she was not answering my calls so we can talk about my concern So I sent her messages thru viber in which she will reply via an audio recording. She keeps on telling me about the poor signal on her location so she cannot answer my calls She told me at first that she will try to tell the owner about my request for discounts on rent. I also told her that my husband is sick and I would appreciate it if we were given discount on rent so we can use it for his chemo and other medicines After so many days, there was no reply There was one instance when she said that she willl give us 1 month discount but after a couple of days she told us via audio recording that she cannot give the 1 month discount anymore but rather discount when we will renew the contract These were the inatances when I cannot understand where we are heading to. I am paying for the rent since March and it is already the 2nd week of June, I feel I am throwing away a lot of money bec nobody knows when classes will resume. Even if I wanted to continue with the rent, I cannot even get any discount from this inconsiderate person. Last June 22 we sent the person-in-charge a message that we will be moving out She replied via audio recording that we should vacate the unit immediately so that the new occupants can already move in to our rented place. I know she does not even need to say those things to me since we had been good tenants for a year and 9 months I do not deserve to hear those words but I just kept quiet and did not tell her that I didn’t like what she said I just told her that I will be looking for a vehicle and a driver to help us in moving out I also asked her what will we do with the remaining 3 PDCs She told me that they were just recording the tearing of the PDCs via video and will send the video to us I told her that I want the checks to be returned via LBC charged to us which she did not want So I agreed to the video so that we can just push through with this moving out We were able to schedule it last June 25 and we were at green residences at about 7:30 in the morning My daughters and I went to the unit to pack things and wait for the admin office to open at 9am I need to settle the water bills before I will be given a permit to move out When I was at the admin office I was informed that the owner of the unit owes the admin office almost P35k in outstanding homeowner’s dues And that amount needs to be settled before we can move out We sent message thru viber to the person-in-charge She tried convincing the engineer to sign our moving out form with a promise that the outstanding dues will be settled accordingly But the engineer refused to sign saying that those were the rules so it needs to be followed She told us to wait and will try to find a way to pay for the dues What I cannot understand is that this person-in-charge has been telling us to move out since the first week of June, telling us that there is a new occupant of the unit, so we can move out soon and then we found out these dues that were long overdue which they failed to settle eventhough they have been encashing my checks monthly for the rent ? My patience was really tested in dealing with persons like her. i just cannot believe I signed a contract with them And that’s not all This person-in-charge was able to instruct his brother to pay for the dues She found a way to help us move out bec she knows we are from the province I met his brother at the admin office and he helped me with the moving out form I went with him to a certain unit so that my moving out form be signed I then realized that the person-in-charge who replies via audio recording has been at the building the whole time but did not even bothered to help us personally with regards to all the problems we encountered She signed the moving out form inside a unit without even showing herself to me one last time I went down to the admin so that the enginner can sign the moving out papers so we can bring down the bed frame, mattress, a personal ref and an electric fan, and then go home soon At the admin office, I then learned that the person-in-charge was not authorized to sign the moving out form So suddenly, there’s a new problem which is not my doing I just tried to convince the staff to have it signed and explained that it was not our fault and we need to head back to province before dark I pleaded over and over again until the admin staff had the engineer sign the forms We were able to move out at about 12:30pm and hurried home The next day we sent a message to the person-in-charge reminding her of the video of the remaining PDCs She gave us a cp no. of another person who has the SPA of the unit we rented This is the first time I knew her name and realized she was representing the owner of the unit I called her and introduced myself as the tenant of unit no _ _ _ _ and is reminding her to dispose of the remaining checks so tbat they will not be accidentally deposited I want her to take note that we moved out yesterday, June 25. She told me that she will be looking for the checks when she gets home and will be recording the tearing of the checks and will send the video immediately to me I also told her to request for the return of the security deposit bec the termination of our contract was caused by a fortuitous event and not merely on my own decision I have no choice but to terminate the contract bec it no longer serves the purpose from which it was made There is no time frame for the resumption of classes and it will be a waste of money if we will continue paying for it The next morning, which is a Saturday, I did not receive any video. I waited until Monday came, no video was sent I called again, still she promised me the same, that she will be sending the videos of the said PDCs I followed up and asked her if she was able to convince the owner to return the security deposit but she told ne that the owner is not easy to convince and most likely will not agree on returning the security deposit I sent her messages and tried calling her and also the person-in-charge but they were not answering my calls and were not replying to my messages Nine days after our last conversation, I was adviced by a lawyer friend to go the bank and request for the stop payment of the remaining PDCs I was shaking and cannot believe it when I found out that 1 of the 3 remaining checks was deposited last June 26 A day after we moved out and the same day we talked to each other on the phone and told me that she is still looking for my 3 PDCs All these instances shows how people betray our trust no matter how we have been responsible as tenants of their unit I informed them both with what I found out but the person-in-charge already defended herself saying that she immediately told the owner’s representative/SPA about the said checks She told me to call the owner’s representative even if I told her she was not answering any of my calls I sent them both messages and pleaded to return the money to the account on the check but they didn’t. These were encashed: Rent for March-April, April-May, May-June and June-July plus security deposit. These totals P55,000. Plus 2 PDCs which no video was sent up to now.... I feel betrayed and fooled I cannot imagine how other people can show this kind of attitude to their fellow Filipinos amidst these trying times I am in disbelief how inconsiderate and cruel some people can be I learned my lesson of not over-trusting people and that sometimes we have to be careful and know the boundaries and limits where we should protect ourselves. I had a lawyer write a demand letter and I don’t know where this will lead to. No matter what, I believe that God sees everything that we do to others and the good and the bad we do twill surely come back to us some time in our lives. We cannot easily get away with it for God sees it all MCC