Rental Scam in Malaysia: My Friend Almost Got Tricked — Read This Before You Rent

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A few weeks ago, my Korean friend, who was relocating to Malaysia for work, texted me that she found a perfect apartment.

But something felt off.

When she contacted the “owner”, she was immediately asked to transfer a booking fee to secure the unit. She hadn’t even viewed the property yet. On top of that, the bank account name didn’t match the owner’s name.

She asked me: ” Is this normal?”

Nope.

　

　

Immediately, I told her to ignore it as it is most likely a scam. While we were texting, the “owner” even called her, and she was scared.

” I found this listing on Facebook, it ticks all my boxes so I contacted the owner. It is really cheap.” my friend said.

That was the first major red flag.

　

Listing on Facebook:

　

Looking at these, straight away I knew it was a fraud. Red Flags that Screamed “Scam”:

1. Rental: RM750/month at Troika KLCC area is unreasonably low and far below market rate, unless it is a problematic unit (water leakage, former crime scene, etc)
   
2. The pictures are not the same on legit platforms, such as Iproperty/ Propertyguru
   
3. Being asked to transfer money before viewing—and to a bank account with a different name—is a classic scam tactic

According to The Strait Times, rental fraud spikes 400% in Malaysia in 3 years. Victims were told to pay a deposit for units that don’t exist or people’s identity being stolen and to conduct fraud.

　

What to watch out for when looking for a place to rent in Malaysia?
　

1. The median rental price
   　
   Scammers tend to list rental units below median rental price to lure victims. To figure out the median rental price, you can go to iProperty/ PropertyGuru and check the rental price for the specific unit.
   　
   
2. Asking for deposit right after you first contacted the owner/ agent
   　
   Deposit (a.k.a booking fee) is only required once you have made up your mind that you want to secure the apartment. Prior to that, you are allowed to ask questions, and view the unit. Deposit is refundable if you or the owner changed their mind. The deposit is required to be transferred to an agency’s or the owner bank account only!!! No third party bank account will be invovled.
   You can request to see the proof of ownership of the property
   　
   
3. Get rejected to view the property without a valid reason
   　
   Malaysia does not have any laws that prohibit people from viewing, even if its tenanted (unlike Japan). If the owner/agent does not have a valid reason, that raises a red flag.
   Moreover, some owners might rent a AirBnB and use it for viewing. Thus, always important to request documentation proving ownership of the property or if the listing agency has a good reputation before paying any deposit.
   　
   
4. If the listing is by a property agent, verify the agent’s license
   　
   In Malaysia, owners usually appoints real estate agents to look for tenants. Only agents with a proper license is legally permitted to conduct any activities related to rental. To check if the agent has a registered license, go to this website, Select “Search for negotiator”, and enter his/her name or any other criteria.
   　

　

Final Thoughts

It can be stressful when looking for a rental property, especially if you’re new to Malaysia or unfamiliar with the market.

Unfortunately, Malaysia is relatively loose on its rental market, compared to other countries like Japan.

Even though authorities are working to tighten enforcement, it is always good to educate and protect yourself.

Alternatively, you can appoint an agent to look for a rental property for you on your behalf. This should be free as according to law, the agent is not allowed to collect any professional fee from the tenants but only from the owner.