With Dubai becoming the second safest city in the world, the real estate industry is on the rise too. Also, the emergence of modern, multi-story residential projects with cutting-edge amenities across Dubai attests to this tendency.
Nonetheless, the escalating demand for real estate has unfortunately given rise to an increase in fraudulent activities and property rental scams in Dubai.
Here is a detailed guide on how to avoid rental scams in Dubai.
How to Spot Rental Property Scams in Dubai?
In recent times, the story of real estate brokers in Dubai deceiving tenants and fleeing with their rental cheques has gained considerable attention.
Recently, the fraudster was arrested for accepting deposit cheques amounting to 135,000 AED for a villa that he had no ownership of.
Plus, the man was discovered to be posting fraudulent rental advertisements for vacant houses, falsely claiming ownership of the properties.
Also, these scams typically target both locals and expatriates who are looking for villas, apartments, or other rental properties in Dubai. Here’s how to spot rental scams in Dubai.
Asks for Credit Card Details
If someone asks you to make confidential payments via money transfer services, it’s imperative to refrain from proceeding any further.
Moreover, authentic real estate websites will never request your credit card information over a phone call or by email. It is wise to cease the transaction when you receive such a request.
Copy Pasted Listings
One of the most common online rental property scams is when scammers post listings of properties they don’t truly own, which are often copied from elsewhere.
Sometimes, these fake landlords even lower the prices to lure naïve tenants.
Also, if you are looking for a specific location, it’s wise to compare the rental prices with others in the area.
Additionally, keep a watch out for any changes made to the contact information, like email addresses or contact numbers, as scammers may try to manipulate such details.
Landlord isn’t Available
If the individual responding to the ads states that they are not in the town, sick, or not available for a meeting, yet insists on receiving a security deposit, it’s a cause for concern.
That’s because scammers purposely avoid face-to-face meetings, making it difficult for you to report them and allowing them to escape with your money.
PRO TIP: A legitimate landlord will always make an effort to meet you in person and show you the property.
Landlord Discourage Ejari Registration
The lease agreement will be registered with the DLD (Dubai Land Department) via the Ejari website once you have signed. This registration is crucial as it helps legitimize the contract with the authorities.
However, if your broker fails to inform you or discourages you from going through the registration process, consider it a red flag, as it could be an indication of a rental scam.
If the Rental Agent Asks You to Wire the Money
If your agent wants upfront payment before signing any legal contract, it should be viewed as a warning. They may ask you to transfer the money, claiming to provide the rental agreement later.
In such cases, it is advisable to stop all communications with them and report the event. Moreover, it’s critical to wait until you have signed a lease agreement before making any security deposit payments.
Tips to Avoid Rental Scams in Dubai
It’s important to exercise caution and adhere to certain guidelines to avoid rental scams in Dubai. Here’s a list of some of the tips that can help you avoid rental property scams in Dubai:
Partner with a Reputable Real Estate Agent
It is essential that you only work with and trust real estate agents that are approved by the Real Estate Regulatory Authority (RERA).
In Dubai, all RERA-approved brokers carry a “Broker’s Card” as their identification. Hence, before entering into any dealings, make sure to verify and check their card to ensure their legitimacy.
Always Use Authentic and Reliable Listing Portals
Conducting comprehensive research on online listing services is imperative to protect yourself from scammers.
Furthermore, accredited listing websites provide valuable advantages, including online booking, convenient online payment options, and 24/7 customer service.
Also, using trusted listing portals reduces the risk of encountering fraudulent rental listings, as these platforms remove such postings.
Moreover, reputable rental websites often provide the property owner’s email address, allowing you to inquire directly about the property along with the contact details for prompt communication with the owner in case of any issues.
Look for RERA Registration
It is crucial to ensure that you exclusively collaborate with brokers who are registered with RERA. RERA is an independent government organization responsible for regulating the property market in Dubai.
When you work with a RERA-registered agent, you can have peace of mind knowing that you will receive the best service possible.
What’s more, RERA-registered agents are obligated to have liability insurance, providing you with an extra layer of protection.
Avoid Paying in Cash
Avoiding cash payments is one of the most effective ways to protect yourself from scammers. That’s because paying in cash gives the landlord or agent complete control over your money.
Thus, if the transaction turns out to be fraudulent, it can be challenging to recover your funds. It is vital to prioritize payment methods such as credit cards or cheques that provide more security.
Establish Direct Contact with Landlord
Tenants should directly communicate with the landlord to ensure that the agents represent them legally.
If feasible, acquire a copy of the agent’s passport and a power of attorney from the landlord. Having these documents provide additional assurance and clarity during the rental process.
Signing Leases
When it comes to renting a property, it’s essential not to accept any informal agreement. The contract must explicitly mention all the rules and standards agreed upon by both the parties—tenant and landlord.
Thus, creating a lease agreement is critical as it outlines the terms under which the property is being rented. This legal contract serves as a guarantee, providing tenants protection.
FAQs
Q: What Are Some Common Rental Scams in Dubai That You Should Be Cautious Of?
A: Here’s what you need to watch out for:
- Listings are vague.
- They want you to wire the money.
- Not available to meet.
- Doesn’t show the trade license of a real estate agency.
Q: How to Avoid Rental Scams in Dubai?
A: Here’s a list of some of the tips to avoid rental scams in Dubai:
- Deal with reputable real estate agents.
- Research market rates.
- Verify documentation and ownership.
- Make sure to sign the lease.
Takeaway
Remember, vigilance and comprehensive research are critical when renting a property in Dubai. Also, taking the necessary precautions will not only protect you from potential property scams but ensure a smooth and secure rental experience.
