Rental scams targeting international students

Consumer Affairs Victoria recorded 31 reports of rental scams last financial year and said some scammers were showing renters properties they had no right to rent out. In other instances, people are asked to hand over rent and bonds for properties they have never inspected. Scamwatch has reported a 56% increase in rental scams in 2020.
Rental scams
Illustration by: Tariq Khan

SMLS has recently seen an unusual spike of international students seeking assistance with recovering their bond from a rental provider or head tenant. We have also seen instances of international students being scammed into paying bond and the first month’s rent for premises that the purported rental provider never owned.

Matias is an International student from Colombia. He is studying nursing and works hard as a food delivery driver to ensure he has enough money for his studies. He was hoping to move to another apartment closer to his study and the area where he worked.  

He saw an ad for an apartment on Facebook marketplace and contacted the advertiser. He applied for the property online and was accepted. He went and saw the apartment, spoke to the person who he thought was the agent, liked the apartment and signed a document purporting to be the lease. He also paid the bond and the first month’s rent in the process, in cash as requested.  

A few days went by and Matias didn’t hear anything when he tried to contact arrange the set of keys, the alleged real estate agent told him that the property is no longer for rent and that the lease was cancelled.  

Matias tried to contact the owners and get his bond money back, however, they stopped answering the calls and blocked all attempts to contact them. Matias is very stressed about the money as now he is not sure what to do.  

Consumer Affairs Victoria recorded 31 reports of rental scams last financial year and said some scammers were showing renters properties they had no right to rent out. In other instances, people are asked to hand over rent and bonds for properties they have never inspected. Scamwatch has reported a 56% increase in rental scams in 2020.

As new arrivals in Australia, international students may not necessarily be fully aware of their rights as renters.  Moreover, with the difficulties of securing affordable housing, international students may also be willing to agree to the demands of a proposed rental provider if securing housing is the paramount priority. International students, therefore, are particularly at risk of being exploited by unscrupulous rental providers.

The task of navigating the legal system to pursue a rental provider is daunting for almost anyone, but especially people where English may not be the client’s first language.

The International Student Employment and Accommodation Legal Service (ISEALS) is being delivered through the Study Melbourne Student Centre by Jobwatch, WEstjustice and Springvale Monash Legal Service, funded by the Department of Jobs, Precincts and Regions.

SMLS can help international students navigate the legal system and pursue rental providers for the return of the bond and rent paid. In the current economic crisis, this may bring vital financial relief, particularly as international students are not eligible for government welfare payments.

According to Consumer Affairs, anyone who believes they have fallen for a rental scam should contact their bank or financial institution immediately.

When you are considering moving to a new property, make sure you:

  • Pay the bond directly to the Residential Tenancy Bond Authority (RTBA)
  • Where possible, establish the identity of the person you are dealing with- ring the company they say they work for to check that they are a legitimate representative.
  • Be wary if there are lots of excuses about why you cannot view the property in person

If you are an International Student and would like to make an appointment or ask a question, please contact the friendly staff at Study Melbourne by email at info@studymelbourne.vic.gov.au or call 1800 056 449.

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