Fraud warning for South Africans who rent

South Africa’s rental market is becoming increasingly dangerous, with fraudulent property scams putting both tenants and landlords at risk.

Fitzanne Estates CEO Pearl Scheltema recently revealed that, in 2025, reports indicate a sharp rise in rental fraud, with criminals becoming more sophisticated in their tactics.

Fake property listings, impersonated agents, and fraudulent payment demands are leaving victims out of pocket, often with little recourse.

According to a recent industry report, online rental scams have become one of the most common types of property fraud, with hundreds of South Africans losing their hard-earned money every year.

In a tough economic climate where both landlords and tenants are facing financial strain, falling victim to a scam can have devastating consequences.

“Fraudsters are getting more creative, and it’s easier than ever to be tricked into paying a deposit for a rental property that doesn’t even exist,” Scheltema warned.

“It’s not just tenants who are at risk – landlords are also being targeted by scammers posing as trustworthy tenants, only to default on payments and disappear.”

Scheltema explained that fraudulent rental scams take many forms, but most follow a similar pattern.

In one of the most common scams, criminals advertise non-existent or already occupied properties online at below-market rates to attract unsuspecting tenants.

Once interest is shown, scammers pressure potential tenants into paying deposits and advance rent before allowing a viewing. The victim then finds out, too late, that the property was never available.

Other tactics involve impersonating legitimate estate agents, complete with professional-looking emails and fake credentials.

Some scammers even arrange property viewings using stolen keys or by renting short-term accommodation to create the illusion of legitimacy.

Landlords are not immune, either. Some fraudsters pose as tenants, providing fake proof of income and references to secure a lease.

After moving in, they fail to pay rent and vanish, leaving landlords with costly eviction processes. In some cases, scammers sublet the property to multiple unsuspecting tenants, collecting rent from several people before disappearing.

For tenants, the financial loss from rental scams can be significant, Scheltema said.

With rental deposits often equating to one or two months’ rent, victims can lose tens of thousands of rands with little hope of recovering their money.

This often forces them to delay securing new accommodation, causing further stress and disruption.

For landlords, rental fraud can lead to prolonged vacancies, unpaid rent, and legal battles to remove fraudulent tenants.

Property owners who do not use a professional long-term letting agency may also unknowingly lease their property to bad-faith tenants who damage the unit or fail to meet their financial obligations.

“Scams don’t just cause financial losses – they create emotional distress for victims who find themselves scrambling for alternatives at the last minute,” Scheltema added.

“That’s why due diligence is crucial for both tenants and landlords.”

She advised that tenants always verify that they are dealing with a legitimate estate agent to avoid rental scams.

This can be done by checking the agent’s registration with the Property Practitioners Regulatory Authority (PPRA).

Reputable agencies ensure that all rental transactions follow proper legal procedures, offering tenants a layer of security that independent dealings often lack.

Other red flags include landlords or agents who refuse in-person meetings, pressure tenants to pay upfront fees before viewing a property or provide vague or inconsistent property details.

For landlords, the best protection is a thorough tenant vetting process, which includes verifying employment history, checking references, and ensuring that rental payments can be made consistently.

Working with a reputable agency can protect landlords as well since they sometimes offer property management services, including detailed tenant screenings and lease agreements that are legally sound, Scheltema explained.

“Working with a professional long-term letting agency isn’t just about convenience – it’s about security.”

“We help landlords avoid renting to unreliable tenants and protect tenants from fraudulent property listings.”

A long-term letting agency provides a structured, legally compliant, and fraud-proof rental experience, Scheltema added.

By serving as an intermediary between tenants and landlords, these agencies can eliminate fraud risks for both parties. For example, since all properties are verified before being listed, the risk of fake listings decreases.

Payments are securely handled through legitimate trust accounts, which also protect users against fraudulent deposits.

In addition, background checks ensure tenants are financially stable and responsible. Rental agencies help landlords navigate legal complexities, ensuring that lease agreements protect their interests, Scheltema said.

Should a dispute arise, agencies can also provide expert guidance on eviction procedures and conflict resolution.

“We’re not just here to facilitate transactions – we’re here to protect both parties,” Scheltema said.

“Renting a property should be an exciting and positive experience, not a stressful one filled with uncertainty and risk.”