Tips: Avoiding rental scams

Before you hand over any money, make sure you or someone you trust has seen the place in real life. If someone says, ‘I’m overseas’ or ‘I can’t show you the place, just pay a deposit first’ that’s a huge red flag. Legitimate landlords or agents should organise a proper inspection.

Scammers often ask for money in unusual ways — like gift cards, Bitcoin, or cash. Don’t do it. Use proper payment methods like credit card, BPay or secure payment platforms (some of which offer fraud protection). If someone is asking you to pay in a strange way, it’s probably a scam.

Always ask for proof of ID and check that real estate agents actually work for a registered real estate agency. You can look them up on the Service NSW website or call the agency to confirm. If they get annoyed or refuse to prove who they are — that’s suspicious.

If you ever receive a letter or email from the real estate agent asking you to change where to pay your rent, make sure it is really from the agent.

It is better to use well-known websites like domain.com.au or realestate.com.au to find a rental. Be careful on sites like Facebook Marketplace or Gumtree — they’re not always monitored, and scammers love to post fake rental listings there. 

A reverse image search might show that the property is a stock image, or outdoor environments that don’t match the area they’re advertised in (e.g. apartment buildings where there should be houses). Similarly, you could cut and paste the content of the listing into a search engine. If it’s a popular scam, it will often be in more than one place.

If the place looks amazing and the rent is very low, ask yourself: ‘Why?’ Scammers often use ‘too good to be true’ listings to get attention. If something feels off, trust your gut. As the saying goes, ‘if it sounds too good to be true, it probably is.’

Always get a receipt for any payments like holding fees, rent in advance or bond payments. If possible, lodge your bond yourself at Rental Bonds Online rather than through the real estate agent or landlord. 

Before paying rent in advance or bond, get a copy of the residential tenancy agreement (lease). Scammers avoid paperwork because they know it can get them caught. 

See Factsheet: Starting a Tenancy for more information on fees payable at the start of a tenancy, and Factsheet: Bond.

If anything feels dodgy, contact NSW Fair Trading or your local Tenants Advice and Advocacy Service. They can give free advice and help you stay safe.

If you suspect a scam, take a screenshot of the original post and keep screenshots or copies of all communications (e.g. text messages, emails or WhatsApp conversations) as they might be important later. 

If you know the name of the business or trader, you can make an online complaint to NSW Fair Trading or call 13 32 20. If you’re not sure where the scammers are from, or if it’s an international or interstate scam, contact the ACCC’s Infocentre on 1300 302 502 or SCAMwatch. You could also report it to the police and the website you found it on. This could help warn other renters against the scam. 

If you have given any of your personal or financial details to a potential scammer, contact the authorities immediately. Advise your financial institutions as quickly as possible if your accounts have been compromised. You may be able to stop a transfer or prevent any further charges. You may also want to reset your online banking and financial passwords.

• Don’t rush into anything – scammers often try to create a sense of urgency
• Don’t pay money before inspecting.
• Double check the details of the people you are dealing with.
• Use proper payment methods with fraud protection.
• Always get a receipt for any money paid.
• Ask for help if you’re unsure.

Being careful now can save you a lot of stress (and money) later. Renting a new place should be exciting — not risky! 
 

• Factsheets: Starting a tenancy, Rent payment, Bond
• New Renters Kit
• Podcast episode: Getting a foot in the door
• Easy read fact sheet: When you start to rent
• SCAMwatch (Australian government)