Renting in the UAE comes with some not-so-good parts, such as ‘rental scams’. It is when a fake landlord tricks tenants into paying security deposits or sharing credit card details. While the UAE has laws guiding real estate transactions, these scams persist. A common question is, ‘How do you know if a rental property is legit?’
To discover how you can detect rental scams and what tips to avoid falling victim to them, keep reading.
- Common Red Flags to Identify a Rental Scam
- Tips to Avoid Rental Scams and Check If a Property Is Legit
- FAQs
Common Red Flags to Identify a Rental Scam
In recent years, the UAE has been a prime destination for expats due to its top-tier facilities and job opportunities. Expats moving to the country are often unaware of the legal processes which lead to ‘rental scams’ where a fake landlord robs tenants of their money.
When renting a property in the UAE, most tenants ask this question: ‘How do you know if a rental property is legit?’ Let’s see how you can detect rental scams and verify if a property is legit.
1. Copied Property Listings
Let’s answer your question: how do you know if a rental property is legit? The most common red flag is copy-pasted property listings. Scammers post rental properties that do not exist using the names of renowned developers and fake contact details. Not only that, the rental prices are also significantly lower than the market to attract tenants.
Short and simple — if something appears ‘too good to be true’, chances are that it is a rental scam.
2. Landlord Avoiding In-Person Meetings
Another red flag to spot rental property scams and fraud is landlords avoiding in-person meetings. When a tenant asks a landlord to arrange a house tour, a legitimate owner is always willing to accommodate them. On the contrary, scammers manipulate tenants to pay security deposits without visiting a property.
3. Fake Title Deeds
The next red flag is fake title deeds or property ownership documents. Scammers often use forged documents to mislead tenants.
4. Asking for Credit Card Details or Upfront Charges
If the renter requests credit card details, be aware that it is a scam. Additionally, scammers trick tenants into paying ‘holding charges’ or other upfront charges before visiting the property. Know that any such payments in cash before signing a tenancy contract are an obvious red flag.
5. Fake Tenancy Agreements
To convince tenants, scammers also sign fake tenancy contracts. This can be fake online tenancy contracts that trick a tenant into paying the security deposit and other charges.
6. Landlord Delaying Ejari Registration
In Dubai, after signing a tenancy agreement, a landlord must register it with Ejari. This is a legal process to protect landlords’ and tenants’ rights. Delaying or refusing Ejari registration in Dubai is one of the most visible signs of a rental scam.
Tips to Avoid Rental Scams and Check If a Property Is Legit
Now that you know how to spot rental scams, let’s see how you can check if a rental property is legit. Here are some tips and tricks to avoid rental scams:
1. Hire an Approved Real Estate Agent
In the UAE, real estate brokers are registered with authorities like the Real Estate Regulatory Authority (RERA) in Dubai. RERA issues a Broker’s Card to these real estate agents, which is a real estate license in Dubai.
The first important tip to save yourself from rental scams is to find a real estate agent in the UAE. Instead of directly searching for rental properties, it is best to hire an approved real estate agent and verify their broker’s licence.
2. Cross-Check Property Ads
When searching for properties, always choose reliable sites like Property Finder. Here is how to check if a property listing is legit:
- Photographs must not be copied from other websites.
- Photos must be free from any watermarks.
3. Verify Property Listings
In the UAE, all legitimate properties are registered with the respective emirate’s real estate authority. For Dubai, the RERA is responsible for property registrations. The easiest way to verify property listings is to use the Dubai REST mobile application (Android | iOS).
4. Research Properly
The next tip to check if a rental property is legit is to conduct thorough research. If a listing has a significantly low price, start by comparing the rental prices in the same area using Price Map by Data Guru. Not just that, plan a visit to the property and cross-check every detail.
5. Contact and Meet the Landlord
Even if a tenant has hired a property broker, they must meet the landlord where possible. This ensures that no loopholes are there that might lead to a rental scam.
6. Verify Title Deed
Never rent a property without verifying a title deed or ownership documents. Cross-check the name on the rental deed and verify its authenticity.
7. Read the Tenancy Contract Before Signing
Tenants must read a tenancy agreement thoroughly and verify all the clauses mentioned. Everything, from rental prices to eviction rules, should be documented in the contract.
8. Avoid Cash Payments or Upfront Charges
Tenants must avoid paying upfront charges before signing a tenancy agreement. When paying the security deposit or other charges, it’s better to go for a cheque or credit card payment over cash.
In case of rental fraud, it can be challenging to recover the financial loss for cash transactions as they have no record, but cheques or credit cards can help trace the scammer.
9. Prioritise Ejari Registration
Last but not least, convince a landlord to register the tenancy contract with Ejari. If the landlord refuses to do so, you can always file a complaint with the Rental Dispute Settlement Centre in Dubai.
FAQs
Several red flags help you spot rental scams, such as copied listings, low rental prices, fake tenancy contracts and fake title deeds.
In Dubai, RERA issues a broker’s licence to approved real estate agents alongside a broker’s number. Tenants can verify it before hiring a real estate agent in Dubai.
That concludes our guide to ‘How do you know if a rental property is legit?’ Follow our tips to detect rental scams and save yourself from financial loss. In case of a rental scam, immediately report it to the relevant real estate regulatory bodies, such as RERA in Dubai.
If you are renting in Dubai for the first time, here is how to navigate the rental process.
