Rental scam is quite a common occurrence that plague Ghanaians. One out of five Ghanaians looking for homes to rent fall prey to fraudsters posing as landlords or real estate agents.
Rental scam is common in Ghana due to the lack of transparency of the real estate industry. According to a survey conducted by the Royal Institute of Chartered Surveyors in 2006, the way real estate markets work in Ghana is largely informal, meaning that the transactions that take place are not transparent, and the registration processes are not formal and regulated. For this reason, many people fall prey to fraudsters that pose as land owners or even real estate agents.
How can you identify rental scam? Arranged in no particular order, here are some tips to identify a rental scam:
- When an agent or landlord demands for a rent deposit before signing a lease, you are dealing with a rental scam. You are not to release any amount of money as rental fee when you have not signed a lease. Yes, you are to pay application fee if applicable, but that is all you have to pay before signing the lease. With rental scams, fraudsters will often cajole victims into depositing some amount of money before signing the lease.
- When an agent or landlord is reluctant to meet you in person, you are likely dealing with a rental scam. Genuine agents would be pleased to meet their prospective clients, as they eager to please their clients and possible get more referrals. Genuine landlords would also be pleased to know who their tenants are, and to know if their property is in good hands. When the agent or landlord do not want to transact the deal with you in person, be careful.
- Take a step back when you are being pressured to move in immediately when you are yet to see the house; it is a rental scam. It is not practical to want to move into a house that you have never seen before. Be careful when you are taken to a house and you only get to view the exterior but not the interior.
- When you are asked to sign an incomplete lease, you are dealing with a rental scam. Like all things legal, a lease must be complete to protect both parties (the landlord and the tenant). When a lease is incomplete, this shows that the landlord or agent plans to change the terms of the lease which is more likely to be to your detriment.
How do you avoid rental scam?
- Do not rent a house when you have not seen the house for yourself. Be sure that the listing is genuine, the house is available and the landlord is credible.
- Make sure you sign a complete written lease before you make any payment. Make sure that your lease identifies the owner of the property.
- Do a thorough research of the house that you want to rent. When you meet the owner of the house, ask questions when you feel sceptical.
- Talk to current or previous tenants of the house you wish to rent. They will help you make an informed decision.
