'People are desperate': Rental scams rise amid housing shortage

Police have revealed reports of rental scams are on the rise with Victorians fleeced of about $125,000 so far in 2023.

Investigators are warning renters to never sign a lease agreement or make a payment without inspecting a property in-person first.

Rental scams can not only swindle thousands from people but steal their identity too.

Tenants Victoria lead community education lawyer Ben Cording said it was "heartbreaking" when many in the community were doing it tough.

"When you have $3000-$4000 drop out of your pocket that's not easy to recover from and for some people that can be the journey into the family living in the car," he said.

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According to Victoria Police, offenders are increasingly using well-known property websites and online marketplaces to target victims.

To make it feel legitimate, they may send photos and videos of a property, real addresses, documentation and scans of passports claimed to be theirs.

The offender will often ask for a month's rent and the bond upfront and request identification documents such as drivers' licences, Medicare cards or passports.

They'll often use the documents to commit identity fraud and scam someone else.

More than 61 rental scam reports have been made to Victoria Police so far in 2023.

Detective Sergeant John Cheyne from the Cybercrime Squad said vulnerable people in the community were being "preyed upon" with devastating consequences.

"An opportunistic scam like this one can end up hitting everyday Victorians where it really hurts, particularly during a shortage of rental properties and a cost-of-living crisis," he said.

"If something seems too good to be true and the rent seems much too low for the area, it probably is," Detective Sergeant Cheyne said.

"Never send your personal details early on in the process, and you should never sign a lease agreement or make any payments before seeing the property."

Offenders try to create a sense of urgency by claiming the property won't be available for much longer or that other people are waiting to put down a deposit.

They may also claim to be interstate or overseas and therefore the property can't be inspected in-person.

Mr Cording agreed with police that one of the driving forces behind the surge in rental scams was the rental shortage and cost of living.

"People are desperate," he said.

"When you've got a couple hundred people turning up to a rental property, the real problem underlying all of this is just the lack of properties available.

"In a desperate environment even the most intelligent, sophisticated people can make pretty risky decisions."

He said changing the system to allow renters to lodge bonds directly with the Residential Tenancy Bond Authority could help prevent some scams.

Detective Sergeant Cheyne said people who suspect they may have been scammed should tell their bank immediately and report it at ReportCyber.

He said they should also inform the platform they've been scammed on.

"Often, matters of this nature are under reported and that can be for a range of reasons, including fear or embarrassment, and sometimes feeling unsure if an offence has occurred," Detective Sergeant Cheyne said.

"I want to assure the community that Victoria Police is committed to investigating these matters and holding offenders to account.

"We encourage anyone who has been subject to a scam such as this to speak to police."