Navigating South Africa's rental market: How to avoid scams

LIMITED availability of suitable options combined with growing demand for rental properties means South Africa’s housing market has become a good hunting ground for fraudsters, with rental scams increasing as prospective tenants scramble for accommodation.

Rising demand

According to the PayProp Rental Index Annual Market Report for 2024, Limpopo and the Western Cape recorded rental growth of 11.1% and 10.1% respectively for the fourth quarter of 2024, the strongest in the country.

In addition, the national average rent exceeded R9 000 for the first time, in the same quarter. The average rent now stands at R9 051/month, with a year-on-year increase of R453 since 2023.

Limited availability

Sarah Nicholson, operations manager of JustMoney.co.za, said prospective tenants were competing for limited rental units in an increasingly pressurised market, and many feel compelled to act quickly.

The national rental vacancy rate dropped to 5.07% in the third quarter of 2024, down from 6.72% in the second quarter, according to the TPN Vacancy Survey Report Q3 2024.

“They often skip vital checks, which leaves them vulnerable to costly scams,” said Nicholson.

How rental scams work

Scammers post fake listings on popular platforms such as Facebook groups and Marketplace, and WhatsApp groups, using photos taken from legitimate adverts. They lure people with attractive deals and claim the property is in high demand. Victims are pressured to pay a deposit or viewing fee upfront, only to discover the listing was fake and the scammer has disappeared.

Common rental cons

Student scam: A student finds a R4 000/month apartment on a classifieds site. The "landlord", who claims to be out of town and cannot show the apartment, asks for a deposit and one month’s rent in advance. The student pays R8 000 and never hears from the scammer again.

WhatsApp bait: A man advertises a R2 500/month room on a WhatsApp group. Potential tenants are advised to pay R1 000 to secure a viewing. Several people pay, but when they arrive at the address, the surprised property owner has no idea why they are there.

Holiday rental trick: A Limpopo family books a Durban beachfront flat for a long weekend after seeing beautiful photos online. They pay the full amount via EFT. When they arrive, the actual residents of the flat are shocked.

Rental red flags: 9 warning signs for potential renters

The price seems too good to be true for a popular area.

Poor grammar and vague descriptions of the property.

Excuses such as “being overseas” when you ask to view the property.

Landlords who won’t meet in person and offer video calls only.

Requests for money upfront to “secure a viewing” or lock in the rental.

Requests for personal information, such as your ID number or banking details, early in the process.

Fake lease agreements sent before any property is seen.

No references.

Pressure tactics - “Other people are interested, so pay now or lose it”.

How to protect yourself

Deal with professionals. Work with registered estate agents or property management companies that follow correct procedures. Avoid deals on WhatsApp or informal groups unless you know who is posting.

Never pay upfront without seeing the property. Always view in person or send a trusted representative.

Verify ownership. Check that the person you’re dealing with is the actual owner or agent. Ask for ID and credentials, a copy of the title deed or municipal account as proof of ownership, or pay a private company that searches online for deeds.

Don’t rush. Scammers use urgency to pressurise victims. Take your time and check all details.

Avoid cash payments. Preferably pay into a registered agent’s trust account.

Speak to tenants or neighbours. Ask them about the property and landlord.

Get everything in writing. Avoid verbal arrangements. A legitimate rental offer should include a signed lease agreement outlining terms, responsibilities, and contact details.

Follow proper procedures. It’s common for landlords and agents to request permission to do a credit check. If they don’t ask for this, you may be dealing with a scammer.

“As rental scams become more sophisticated, it’s vital to stay alert,” said Nicholson. “Trust your instincts, preferably deal with a reputable agent, and verify everything before you make a payment.”

Where to report a rental scam

South African Police Service (SAPS). Visit your nearest police station and file a case. Report it as a criminal offence such as fraud or theft, and get a case number.

The online platform where you found the listing. Report a fraudulent listing so the administrator can remove the ad and block the scammer.

The Rental Housing Tribunal. If you've entered into a lease agreement and experience unfair or illegal practices, contact the Tribunal in your province for a free dispute resolution service. Find details under the Department of Human Settlements.

Property Practitioners Regulatory Authority (PPRA). If the scam involves a registered estate agent, report them to the PPRA. See the PPRA website or email complaints@theppra.org.za.