UGANDA, Kampala | Real Muloodi News | Rental fraud is a growing problem in Uganda, with fraudsters targeting unsuspecting renters who are seeking a place to live.
Rental scams can result in significant financial losses for renters who fall victim to them. In this article, we will explore the different types of rental fraud and provide tips on how to avoid becoming a victim.
What is Rental Fraud?
Rental fraud is a type of scam where someone claims to be a property owner or landlord and offers to rent a property that either does not exist, is not a rental, or is substantially different from what was advertised.
Fraudsters will often collect inspection fees, rental advance payments, or rent before the prospective tenant recognises the fraud.
Types of Rental Fraud
There are several types of rental fraud, including:
- Already rented house scam: Agents will show or advertise already taken house pictures in an attempt to collect search fees or agency fees for a house that is already taken.
- Fake listings scam: Fraudsters will list places that don’t exist or aren’t rentals and try to lure renters with low prices.
- Fake landlords or property owners scam: Middlemen present fake landlords or property owners to receive rental advance payments.
How to Avoid Rental Fraud?
Here are some steps to take to avoid losing money to rental fraud:
1. Avoid Middleman Scams on Property Sites
The middleman scam is a common scheme, particularly on property websites and platforms. However, the Real Muloodi Property site has a feature that minimises this kind of scam.
Anyone who lists a property on this site must provide full details, including a facial ID recognition feature, to verify their identity. Read more about how this works HERE
Owners have full control over how and to whom they sell or rent their property without paying any commission. This helps avoid delays caused by middlemen, who may increase the property value for a higher commission, resulting in prolonged sales or rental periods due to inflated prices.
In addition, the Real Muloodi Property site’s security measures include encryption of all personal information and regular security updates to protect user data. Users can also report any suspicious activity or listings to the site’s standby 24/7 support team.
With its user-friendly interface and robust security measures, the Real Muloodi Property site is an excellent choice for anyone looking to buy, sell or rent properties.
2. Do Your Research
Before renting a place from someone, do your homework by running basic research on the internet. Google the landlord’s e-mails, names, property addresses, etc.
If there is a real estate company that represents this particular landlord, make sure you google some feedback and reviews regarding how they handle business.
3. Be cautious of those who want to make a deal with no background info
Landlords usually want to screen their prospects. When your potential landlord doesn’t care about it and rushes to sign the lease without running any checks on you, this is a huge red light, and you should be careful.
4. Rent from reliable real estate companies
If you are particularly worried about fraud or moving into an apartment sight unseen, renting from a large, well-known property management company may be your best bet.
Larger properties generally have trusted leasing agents and follow a set procedure so you can make sure you’re not being scammed.
5. Never pay rent without inspecting the property several times
Having a chance to look at the place you plan to rent several times should be the number one priority for you, and once this requirement is not met, you can skip that landlord.
6. Meet the property owner in person
Once you are satisfied with property inspections, you should meet the actual landlord, the homeowner, the person who has all the rights to rent out this place to you.
7. Verify the Landlord or Identify the Property Owner
Before going ahead and signing the tenancy agreement, ask for the property ownership documents that prove that you’re dealing with a person who has all the rights to rent out this place. This will help you understand that this whole deal is legit.
Avoid anyone who tells you that the documents will be sent to you later. A real homeowner who doesn’t have any reasons to avoid should always show you the documents.
When you see the ownership documents and the name there doesn’t with the name of the landlord, there is nothing to do here.
8. Never Pay Any Start Cash
Scammers who aim to cheat you will always insist on cash payment. If you refuse, they will move on to the next prospect. Rental fraudsters often demand cash payments as it’s difficult to trace and can’t be refunded easily.
Always sign a tenancy agreement from a recognised law firm or lawyer. Avoid verbal agreements. If necessary, have your or another lawyer review the agreement before signing it. If there is a dispute, it is challenging to resolve verbal agreements, and taking them to court is a headache.
The key things to look for in the tenancy agreement:
- The tenancy contract must be signed by both parties: the property owner and the tenant, and witnessed by two witnesses from both sides.
- Ensure that you receive a copy of the contract, not just the landlord’s.
9. Talk to current or previous tenants
Speaking to current tenants can help you confirm the information provided by the landlord. Contacting previous tenants who have rented the property recently is another way to check if the landlord is reliable.
Some tenants are willing to provide good references, but sometimes you have to research on your own.
The Real Muloodi Property Site is a reliable source that can help you find a genuine rental property. The site also allows you to communicate with the landlord directly, so you can ask any questions and verify any details before signing a contract.
Scammers are becoming more skilled at tricking people into paying for properties that do not exist or are not available, so always be careful when renting a property. Do not rush into making payments without verifying the property’s authenticity.
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