{"id":17605,"date":"2018-06-26T03:21:32","date_gmt":"2018-06-25T19:21:32","guid":{"rendered":"https:\/\/www.99.co\/blog\/singapore\/?p=17605"},"modified":"2024-11-20T12:11:03","modified_gmt":"2024-11-20T04:11:03","slug":"rental-scams-singapore-landlords","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/rental-scams-singapore-landlords\/","title":{"rendered":"6 scary rental scams Singapore landlords fall prey to"},"content":{"rendered":"
<\/div>

Mention rental scams, and you could be forgiven for thinking that tenants are usually the victims (e.g. paying a deposit to a fake landlord). One recent case involved a 56-year-old woman who had allegedly deceived<\/a> potential tenants to pay rental deposit to secure a rental.<\/p>\n

But did you know that landlords in Singapore are the targets of scammers posing as legit tenants?<\/strong> For those of us who are renting out your property or thinking of doing so, we’ve compiled a list of rental scams that landlords of residential properties need to watch out for.<\/p>\n

1. The phishing scam<\/h2>\n

This is a phishing attack in the guise of a rental request. With this rental scam, the tenant insists on paying you first. They\u2019ll claim they want to transfer their security deposit, or the first month\u2019s rent, but can only do so via services like PayPal.<\/p>\n

Later, they\u2019ll ask for your account details, as well as your name, NRIC number, address, etc. This is sufficient information for them to hack your account. Not all of them are just after the funds in your wallet, either; some of them will use your hijacked account to launder money.<\/p>\n

Several Singaporean landlords have also shared about being targeted for such a scam on anti-scam site scamalert.sg<\/a>, using names such as Tan Mui Joo.<\/p>\n

Never trust a tenant who\u2019s eager to pay before even viewing the property.<\/p>\n

2. The subletting scam<\/h2>\n

This is one of the most vicious rental scams a so-called tenant can pull, because it affects an innocent third party.<\/p>\n

This scammer starts off appearing as a good tenant who pays rent on time for the first few months. They may even put down an unusually big amount at the start, such as three months\u2019 rent. After the first three months, however, you\u2019ll notice there\u2019s no more money coming in.<\/p>\n

And, when you visit your property, you\u2019ll find it inhabited by a total stranger. This stranger has been tricked into thinking your tenant is the landlord, and has been paying the rent money to your tenant.<\/p>\n

\"shoes<\/a>
If there are only two occupiers, why are there so many shoes outside my unit?<\/figcaption><\/figure>\n

By the time you find out, the tenant has usually left the country.<\/p>\n

This rental scam is especially painful if the third party is vulnerable (e.g. a single parent, or a foreign worker who desperately needs the funds). You won\u2019t feel good evicting them, but they can\u2019t afford to pay you after already paying your criminal \u201ctenant\u201d rent in advance.<\/p>\n

To prevent this, always make appointments to check on the property every few months. If you\u2019re renting out a condo, get to know the neighbours and the security guards; they can be the first to tip you off if something is wrong. Some condos also let residents install a CCTV camera outside their units.<\/p>\n

The Singapore Police Force has put up crime advisories<\/a> to warn against these scams \u2014 but as many \u201csubtenant\u201d victims are foreigners, they may not get the message until it\u2019s too late.<\/p>\n

We suggest introducing any confirmed tenants to your neighbour; this suggests to them that there\u2019s another pair of eyes on them.<\/p>\n

3. The short-term lease scam<\/h2>\n

This is like scam #2, except in this case, the scammer \u201cshort-leases\u201d your property illegally. This is most popularly done through sites such as Airbnb. At prices of around S$120 a night, a tenant can shave substantial amounts off their rent by having illegal guests stay over.<\/p>\n

Because these short stayers are only around for a few days, it\u2019s easy for them to make the excuse that they have visiting friends. Also, your tenant is still there most of the time, so even the neighbours may notice nothing strange.<\/p>\n

One such reported case<\/a> involved a man who had leased 14 units and sublet them for short-term stays on platforms such as Airbnb and HomeAway. His girlfriend had also helped him to rent two units and manage host accounts on Airbnb.<\/p>\n

The man was eventually fined around S$1.16 million (the largest amount for the offences), while his girlfriend was fined S$84,000.<\/p>\n

As the landlord who has rented out an apartment, make it a point to visit websites like Airbnb to check whether your home is listed, or Google your address from time to time. That’s how you can find out if your tenant is illegally letting out your place on a short-lease basis.<\/p>\n

4. The illegal stash scam<\/h2>\n

This is when criminals use your house as a storage space.<\/p>\n

The tenant will pay the rent on time and doesn\u2019t cause any trouble. They\u2019re quiet all the time. In fact, they may be too <\/i>quiet. Neighbours may notice the lights are off all the time, or that they seldom see the tenant come in and out except at odd hours.<\/p>\n

The tenant is using your property as an illegal stash house. They can\u2019t store their unlicensed cigarettes, pirated DVDs, narcotics, etc. in any old warehouse. So the next best option is to rent in a quiet residential area, and keep the stuff in the closets. The rental cost is peanuts, compared to their criminal proceeds.<\/p>\n

Again, the best defence is to visit the tenant periodically. The easiest way is to make it clear in your tenancy agreement<\/a> that the landlord may enter the premises every three months for maintenance work (e.g. air-con cleaning). Of course, the tenant might hide the stuff when you arrive, but they may decide to move, and find a less discerning landlord.<\/p>\n

\"Rental<\/a>
Don’t let your apartment become an episode of Breaking Bad<\/em>.<\/figcaption><\/figure>\n

5. The brothel scam<\/h2>\n

This is the one we love to giggle at in the news<\/a>. But it really happens, such as this case we covered<\/a>, and it\u2019s not restricted to the heartlands.<\/p>\n

The rental scam is perpetuated by pimps, who rotate various women in and out of the house. Clients of the prostitutes are invited into the property, which is a major problem. A furnished property may be damaged by the clients, or items get stolen. And if there\u2019s an altercation (e.g. assault), you could deal with a police investigation that you really don\u2019t need.<\/p>\n

Remember that, even if you\u2019re eventually cleared, the police will have to look into your details. (They\u2019ll need to ensure you\u2019re not in cahoots with the pimp). This can cause undue stress and worry.<\/p>\n

This scam mainly happens in heartland areas, but don\u2019t assume it won\u2019t happen in a condo. Prostitution rings will use any location with lax security and high anonymity.<\/p>\n

Again, clauses in your tenancy agreement that specify the need to periodically enter the premises for maintenance work could help prevent this, as with being on good, communicative terms with your neighbours who can keep a lookout for you.<\/p>\n

6. The hit-and-run scam<\/h2>\n

This is a tenant who can\u2019t afford to pay you throughout the entire lease \u2014 and knows it. They may have enough for the rental deposit and advance, and perhaps half a year of rent. But they\u2019ll sign a year\u2019s lease for a fancy property (like your District 9 condo), knowing full well they\u2019ll stop paying beyond a certain point.<\/p>\n

These tenants have different motives \u2014 some just want to live in a luxury area for a while, and then run. The more nefarious ones are running some kind of scam, like a fake investment scheme. They\u2019ll rent prestigious addresses for credibility, with no intent to stay beyond a few months.<\/p>\n

These tenants will usually start giving you late payments after three or four months, and their excuses will pile up. By the time you take action, they\u2019ll owe you one to two months\u2019 of back rent, but the house will be empty when you show up.<\/p>\n

(We\u2019ve also covered a case on such a tenant, in which he owed over S$60,000 in rent<\/a> and had refused to move out of the property.)<\/p>\n

A good way to prevent this is to verify the tenant’s occupation by asking for their name card at the viewing. You can then Google their online presence (possible even with just the tenant’s email address) or give their company a call to verify that they are indeed working there.<\/p>\n

[Additional reporting by Virginia Tanggono]<\/p>\n

To avoid being a victim of rental scams, consider getting an agent to screen the tenant<\/b><\/h2>\n

Most of these can be prevented by having a good property agent representing you, the landlord. Property agents registered with the Council of Estate Agencies (CEA)<\/a> must perform basic background checks on prospective tenants. They may also have experience in spotting the warning signs of a bad tenant or a potential scammer. Sure, you might need to pay a one or two month agent’s commission<\/a>, but a peace of mind is surely worth more than that.<\/p>\n

Have you encountered any rental scams? Let us know in the comments section below.<\/h2>\n

If you found this article helpful, 99.co recommends Property agent busts rental scam on viral TikTok video<\/a> and 27-year-old posed as wealthy Korean heir to buy properties, forged S$1 trillion cheque<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Mention rental scams, and you could be forgiven for thinking that tenants are usually the victims (e.g. paying a deposit to a fake landlord). One recent case involved a 56-year-old woman who had allegedly deceived potential tenants to pay rental deposit to secure a rental. But did you know that landlords in Singapore are the…<\/p>\n","protected":false},"author":21,"featured_media":61339,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","_lmt_disableupdate":"no","_lmt_disable":"no","_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[57131,53590],"tags":[53648,57446,53640,56422],"persona":[57128],"class_list":{"2":"type-post","14":"entry","15":"has-post-thumbnail"},"acf":[],"yoast_head":"\n6 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