A Guide to Rental Safety and Scam Prevention in India 

By Lodha

Renting a home in India has become increasingly popular, especially in fast-paced metros like Mumbai, Bengaluru, Delhi-NCR, and Hyderabad. However, as the rental market grows, so does the number of rental scams. Whether you are a first-time homebuyer or someone looking for flats for rent, it’s important to ensure that your rental experience is safe and free from fraud. In this blog, we’ll guide you through the common rental scams, how to protect yourself, and provide tips for both first-time renters and NRIs.

Why Should You Care About Rental Safety?

Renting a property is not just about finding a place to stay—it’s about securing your future. A home provides stability, safety, and security. Falling victim to a rental scam can result in financial loss, legal complications, or, in worst cases, homelessness. Real estate investment in rental property requires a prudent approach, and it's essential to stay vigilant to avoid losing money or getting trapped in fraudulent agreements.

Scams are not limited to major cities. Smaller towns with burgeoning tech hubs, such as Indore, Coimbatore, and Jaipur, are also seeing an increase in rental frauds. According to recent data, cybercrime related to property fraud has risen by over 35% in the past two years, with much of it linked to rental scams conducted through online platforms.

Common Rental Scams to Watch Out For

1. Fake Listings on Classified Platforms

Scammers often post attractive listings on websites, featuring low rents and beautiful photos, but these properties may not even exist. Once you show interest, they may pressure you to send an advance to "lock" the deal.

Avoid: Any listing where the landlord is unwilling to show the property in person or provide details about its legal status.

2. Advance Payment Fraud

You may be asked to pay a significant advance to secure the rental property. Once you transfer the money, the scammer vanishes, leaving you without any property.

Avoid: Paying any amount without a signed agreement and proper receipts.

3. Unverified Landlords

Some fraudsters impersonate property owners, creating fake Power of Attorney documents to rent out homes they don’t own.

Avoid: Landlords who hesitate to share ownership documents or their identification details.

4. Duplicate Rentals

Fraudsters may rent out the same property to multiple tenants using fake or forged documents.

Avoid: Multiple people moving into the property at the same time or being asked to pay substantial sums without proper documentation.

Steps on How to Protect Yourself

1. Conduct a Physical Visit

Always visit the property in person. If you are an NRI or unable to visit, ensure you have a trusted person verify the property and its ownership.

2. Verify Ownership

Request key documents, such as the title deed, property tax receipts, and approved building plan. Cross-check these with local municipal records where possible.

3. Insist on a Registered Rental Agreement

A rental agreement should be executed on stamp paper and registered with the local sub-registrar’s office. This is vital for protecting your legal rights.

4. Be Wary of Too-Good-to-Be-True Deals

If a property is offered at an unusually low rent compared to the market value of property, it’s important to be cautious. Cross-verify the rent on trusted platforms like Housing.com or through a real estate company in India.

5. Use Trusted Platforms and Verified Brokers

Choose reputed online platforms with verified listings to avoid falling for scams. If you’re using a broker, ensure they are registered with RERA (Real Estate Regulatory Authority), which is mandatory in most states.

6. Avoid Full Payments in Advance

Do not pay the full security deposit or any advance payment before signing the agreement and receiving the keys.

Extra Tips for NRIs Renting Property in India

As an NRI, renting a property in India can be more complicated due to distance and trust issues. Here are some extra tips to keep in mind:

• Use Trusted Platforms: Opt for real estate investment companies or platforms with a verified track record. Look for services that offer a high level of transparency.
• Secure Documentation: Ensure that the property has a valid title deed, and all documents are in order before you proceed with any transactions.
• Easylease Facility by Lodha: Lodha’s Easylease service provides homeowners with verified tenants, reducing the risks of scams. This facility also helps with lease formalities, ensuring your property is rented out securely.

Conclusion

Rental safety in India is critical, especially with the rise of online scams and fraudulent landlords. Whether you are looking for houses for rent, flats for rent, or apartments for rent, it’s important to take steps to protect yourself. Always verify the property’s legal status, insist on a registered rental agreement, and be cautious of too-good-to-be-true offers.

For those looking to rent properties without the hassle, Lodha Group offers verified properties with their Easylease service, which connects homeowners with reliable tenants. This service helps streamline the rental process and ensures that your property is rented safely and legally.

FAQs

1. How can I avoid rental scams?
   To avoid scams, always verify the property’s ownership, ask for legal documents, and ensure the rental agreement is registered.
2. Are there specific scams that NRIs should be aware of?
   NRIs should be cautious of unverified landlords and fraudulent Power of Attorney documents. It’s advisable to use trusted platforms for renting property.
3. What is Lodha’s Easylease service?
   Lodha’s Easylease service helps homeowners find verified and genuine tenants, ensuring safe and seamless rental experiences while assisting with lease formalities.