Renting a house is not an easy process. Similar to being careful while buying a house, you have to be careful while renting one too, to save yourself from unnecessary troubles. There are many points that you have to carefully assess while you are renting a property- budget, configuration, location, friendly landlord and the list goes on.
Listed are some red flags that you have to pay heed to while renting a property to safeguard from rent-related frauds.
Rental scam #1: Absence of rent agreement
Whenever you rent a property, a formal rental agreement has to be made and registered for which a stamp duty is also paid. While it may incur some cost, it is a legal and safe way to proceed. An agreement includes necessary information including the rent to be paid, the security deposit paid, the duration of rent etc. In case, a landlord offers to rent his property without a rental agreement in place or a verbal agreement, there is something fishy and it’s recommended to not proceed with such transactions. If you proceed, there is a chance that you may face problems like the landlord asking you to vacate the house without notice or he never returning the security deposit you may have paid.
Rental scam #2: Dubious real estate agent
In the interest of the people-home buyers and tenants, according to the Real Estate (Regulation and Development) Act, 2016, only Rera registered agents can practice. In fact, taking a step ahead, the MahaRERA has made it mandatory for MahaRERA agents to get certificate of competency. Be sure that the agent you approach is Rera registered and is not a fake agent who may scam you of your money.
Rental scam #3: Payment before the site visit
With virtual tools becoming popular, most agents/ landlords take prospective tenants on a virtual tour of the property and demand for an advance before the actual property site visit. Asking money upfront before servicing is a warning sign and you should not consider such deals.
By encouraging this, the problems you may encounter are
- Pay for something and get something else.
- The landlord/agent blocks all communication with you once the money is transferred.
Rental scam #4: Persisting you to take the property on rent
If a landlord is over-persistent on you renting the flat, it may be a red flag. It’s recommended to do a thorough background check before proceeding with the deal.
Rental scam #5: Low rent on paying with cash
Most often, landlords by tempting you may quote less rentals when paid in cash component and no receipt. Be wary of this as there is no proof of transaction at all. This is also illegal.
| Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at [email protected] |
With 16+ years of experience in various sectors, of which more than ten years in real estate, Anuradha Ramamirtham excels in tracking property trends and simplifying housing-related topics such as Rera, housing lottery, etc. Her diverse background includes roles at Times Property, Tech Target India, Indiantelevision.com and ITNation. Anuradha holds a PG Diploma degree in Journalism from KC College and has done BSc (IT) from SIES. In her leisure time, she enjoys singing and travelling.
Email: [email protected]
