First-time landlords must take care not to fall prey to old scams with new angles.

“Those new to the property market who are considering renting their properties should take extreme precautions against charlatans or habitual defaulting tenants. Even the most experienced property managers can be caught unawares by those wanting to abuse their trust,” says Michelle Dickens, managing director of TPN, a specialist credit bureau profiling tenant behaviour and rental payment profile.

“One of our subscribers recently encountered a fraudster with an old trick but a new angle for 2010. He claimed to be an advocate and a representative of The United Nations Children's Fund (UNICEF) Médecins Sans Frontières (MSF or Doctors without Borders).”

Pat Redford, owner and operator of Reds Property Management who manages several luxury apartments in Sandton’s CBD for private investors, says: “I received a call from a ‘Dr. Esslinger’, who said he was a chairman of a trust fund which sponsors doctors from Europe to train for the worldwide organisations UNICEF and MSF. He told me that his associate, an advocate who works as a local representative for the organisations, would contact me regarding accommodation for a year for their volunteers.

“I met with the man, who was elegant and very well-spoken. I had no reason to disbelieve him. He ‘represented’ a worldwide charitable organisation and listed all the doctors by name and even provided contact details of an assistant who would liaise with me regarding the lease agreement.”

The fraudster took up occupation at one of the apartments and promised a sum of R300k within 14 days. The fraudsters then proceeded to spend two weeks at the luxury property without paying anything to the owners. Also, they gained the bank account details of the property owners, who were concerned about fraudulent activities and as a result, the owners’ bank accounts had to be closed.

“It was a harsh lesson to learn, but from now on I will run credit checks on all tenants over the age of 18 on all the properties I manage. I will not be caught out like this again,” says Redford.

“People are less inclined to be suspicious of individuals in roles of responsibility, especially those who represent a good cause,” says Dickens.

“If it sounds too good to be true it usually is.”

Readers' Comments Have a comment about this article? Email us now.

Getting caught by scams as these all come down to one reason – GREED

Anybody, especially from organisations willing to pay way above market prices for something are either 1) crooks or 2) have ulterior motives. In any case, before any occupation takes place, MiB – Money in the bank.

6 month leases with a 2 month deposit a definite. Anyone not able to pay a two month deposit should be approached with caution. Be careful especially of high income rentals like luxury houses. A defaulter can leave the lessor with a R40k bond/rates etc payment. Smaller flats etc are more manageable/able to absorb. – Corrie Versluis

I read the article about the new take on an old scam. It is however also necessary to list clients with this kind of non-payment attitude with companies like TPN and so forth. Unfortunately I had a client who is an excellent liar and I had more or less the same experience. However, he is not listed on any credit check system. I think it is because the previous persons he rented from, never put his name up at Transunion or any other credit facility. – Linda Cronje