An advocate has called for a public register to protect desperate renters after more than a dozen prospective tenants were allegedly scammed out of more than $60,000 (US$39,000).
The alleged fraud involved numerous properties across Sydney advertised on social media platforms since February 2022.
Prospective renters were enticed into paying bonds for the properties in Bondi, Parramatta, Liverpool, Wentworthville and Auburn only for contact to later end.
Police this week pounced on the alleged fraudulent landlord, a registered property and strata manager, outside his employer’s office in Merrylands.
The Rhodes man, 35, faced a Sydney court on Nov. 17 on 34 charges including 21 counts of dishonestly obtaining financial advantage by deception.
Fair Trading Minister Anoulack Chanthivong said the man’s alleged behaviour was “appalling” and would not be tolerated.
“There are serious consequences for these kinds of scammers,” Mr. Chanthivong told AAP in a statement.
Rents, particularly in the largest capital cities, have risen sharply in the past 18 months while vacancy rates have dipped to record lows.
Jordan van den Berg, whose purplepingers channel exposes poor-quality rentals, said the housing crisis had left many people taking advantage of renters in need.
“Renters are looking anywhere they can for a home and even real estate agents are starting to move to unregulated platforms like Facebook Marketplace in order to avoid paying a listing fee on (property sites),” Mr. van den Berg said.
“Rental bond scams are not new, however as renters become more desperate, the job of fraudsters becomes easier.
“This is a symptom of decades of successive government failure.”
Renters were desperate and might not be in a position to refuse a property opportunity that came up, Tenants Union of New South Wales (NSW) chief executive Leo Patterson Ross said.
When possible, renters should be cautious about dealing with online ads that could not be checked offline or if attempts to inspect a property were knocked back, he said.
But Mr. Patterson called on the NSW government to seriously consider a register of rental properties.
“(Then), no matter what platform the advertisement is through, you can check if the person you are dealing with has the authority to offer you that home,” Mr. Patterson said.
“We have registration in short-stay accommodation and in many industries in part to help prevent people, both renters and the actual owners, getting ripped off.”
The accused offender spent Nov. 16 night in police cells before being bailed by a court on Nov. 17 on the condition he report daily to police and use only one phone.
A manager at his office said the matter was being taken seriously.
Fair Trading will review the man’s licence.
It follows the conviction of two now-former real estate agents this year for misusing renters’ funds.
A state government-led review of rental laws is also under way with the aim of rebalancing the market to better empower tenants.
No-grounds evictions, more pets in rentals, a portable bond scheme, a public database of rent increases and a requirement to provide a fee-free online payment method are among the policies on the table.
