Online property portals have simplified the process of finding a new home in the UAE. Whether you are looking to buy or rent, you can contact several landlords by seeing their ads. In the UAE, the government has played a key role in safeguarding the rights and interests of both tenants and landlords through strict policies. Policies are also in place to prevent rental property scams.
UAE Public Prosecution has also warned that publishing false and misleading ads will result in imprisonment and hefty fines. The minimum fine to mislead consumers through fake advertisements starts from AED 20,000 and goes as high as AED 500,000. However, property seekers should also stay vigilant to avoid any unfortunate experiences. If you are looking to rent a property in Dubai, these tips can help you to identify rental property scams.
How to Spot Rental Property Scams
The question is how to verify the owner of a rental property when renting a property in the UAE.
The Landlord Discourage Ejari Registration
Once you sign the lease, it will be registered to the Dubai Land Department via Ejari’s website. The purpose of this registration is to legalise the contract with the concerned authorities. If your agent will not mention this to you or discourage the registration procedure in any way, then be aware it is a major rental scam red flag.
Asks for Your Credit Card Details
If you are being requested to pay anonymously through money transfer services, please do not continue with the process. Also, authentic real estate websites will never ask you to provide your credit card details via call or email. If you receive such a request, be smart and stop the transaction right away.
Copy Pasted Property Listings
One of the common online rental property scams involves scammers posting copy-pasted listings of the property they do not even own. In some cases, the fake landlords also poach the listings and drop the rentals significantly. Be wary of rents at very low prices. If you are interested in a specific location, make a comparison with the rest of the rentals in the area. Besides, they can also alter contact information such as email addresses and phone numbers.
The Rental Agent will Ask you to Wire the Money
Consider it as a major warning if your agent asks you for upfront money before signing any agreement. They can ask you to transfer the money and promise you to give a rental agreement afterwards. Instead, cease all communications and file a report against them. Additionally, you must wait to pay the security deposit until you sign a lease.
The Landlord is Unavailable
The person responding to the ad claims to be out of town, ill or unavailable to meet, yet still requires a security deposit. Scammers avoid meetings, so you can’t report them, and they can get away with your money. A legitimate landlord will meet you in person and show you the property.
Tip to Avoid Rental Property Scams
Scammers often steal photos of a property on the Internet and run a fake ads on public rental, purchase and sale sites. Therefore, it is necessary to be suspicious of offers that are shared on social networks without having an authentic ID.
Let’s find out more about how to avoid rental scams in Dubai.
CONSIDER APPROVED ESTATE BROKER
Always make sure that you deal with and consider only those agents that have approval from the Real Estate Regulatory Authority. In Dubai, all the RERA-approved real estate agents keep a “Broker’s Card” which works as their identity. So, don’t forget to check their card before dealing with them.
DON’T DEAL DIRECTLY IN CASH
The best way to practice shady operations is to deal in cash only because it cannot be tracked. The landlord who aims to scam you will always ask you to pay in cash and will simply cancel the deal if you refuse.
So, always remember that you will not make an advance payment or pay the last month upfront as a security deposit in cash. If you do so, ask the landlord for a buying receipt. Also, if you make a payment through a cheque then, there is a chance that you can trace them in case of property fraud.
CHECK THE PROPERTY LISTINGS CAREFULLY
Be suspicious if you detect that the photos of the house are copied from another website (they contain watermarks) or if they are the same as those seen in other ads. So, try to look for the same listings and compare them from different real estate agency sites.
DO YOUR RESEARCH
One of the best things you can do to spot rental property scams is to do thorough research. Check on the internet if you can find any websites where people share their reviews and feedback. So, before you plan to rent a place, make sure you do your homework, analyse the market and check the rental trends to spot any ad with a weirdly low price. If you are in touch with an agent, check the property address and their social media accounts.
ALWAYS SIGN A WRITTEN LEASE
Never accept any informal agreement. All rules and standards agreed upon between the lessor and, the lessee must be in the contract. It is recommended to make a lease, which will always set under what conditions the property is being rented. The legal contract also serves as a guarantee, in case you need to start legal proceedings for a later problem.
HOW TO VERIFY THE OWNER OF RENTAL PROPERTY
- You can ask Emirate ID or a passport of the landlord or an agent
- Don’t forget to ask the proof of ownership of the rental property
- Always ask for a copy of the trade licence of the broker
- If you are consulting a real estate company, then check the trade license
- Try to verify the approved activities as per the license from the Economic Department
- Check registration number and the broker’s licence
Here we conclude our guide on how to spot and avoid rental property scams. Also, in case you detect a scam, consider your emirate’s real estate regulator and file the case against the agent. The available authority in Dubai is the Real Estate Regulatory Agency and the Abu Dhabi Judicial Department is for Abu Dhabi.
Also, if you have a property and want to get rented, then follow these tips to get your property rented faster.
Stay in touch with the UAE’s leading property blog for more rental tips.
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