Another property rental scam has been brought to light recently. The fraudsters use Western Union – an international money transfer service – to scam hundreds of students for thousands of pounds they allegedly pay to cover deposits and rent.
The way the scam works is:
You find a house or flat that looks ideal at a great price;
You contact them to arrange a viewing of the house;
They explain that they ‘don’t want time-wasters’ and ask you to prove that you have the money to afford the house;
They then ask you to transfer 1 month’s rent and deposit to any of your family members or friends via Western Union or a similar money transfer service;
Once you have done that, they will ask for the transaction receipt as proof saying that until this is done, they can’t meet you for a viewing;
They then use the receipt to withdraw the money, leaving you out hundreds of pounds and of course, without a house.
It’s incredibly rare for someone to charge you just for a viewing or especially to prove that you can pay for the house before you have seen it. The only thing you ever pay for except for rent and deposit is the administration fee which does in fact go towards ensuring that your guarantor (typically a family member) can cover your rent payment in case you can’t. You can read more about administration fees and guarantors here.
To avoid being scammed remember:
If it doesn’t feel right, end all communication;
If it sounds too good to be true (e.g. £5 a week to live in a mansion) – it probably is;
Always view the property first;
Always sign tenancy agreement before paying rent and deposit. Administration fees, however, are normally handled prior to signing the tenancy agreement.
Make sure you find your student accommodation through credible sources. Sources affiliated with universities, councils or any large, established organisations are always far less likely to cause you any trouble when you’re looking to move into your new home.
Take a look at this sample scam email sent to a student.