In recent times, Malaysia has witnessed a disturbing surge in rental scams, leaving many tenants and landlords vulnerable to fraudulent activities. Scammers have adopted sophisticated methods, often posing as legitimate property agents, to deceive unsuspecting individuals. These fraudulent schemes have not only resulted in significant financial losses but have also eroded trust in the real estate sector.
Recent Cases Highlighting the Severity of Rental Scams
- Homestay Misrepresented as Rental Property: A man in Kuala Lumpur was duped into paying a deposit for a property that turned out to be a homestay, not available for long-term rent. The agent vanished after receiving the payment, leaving the victim without recourse. Source: The Star, April 28, 2025.
- Airbnb Units Misrepresented as Long-Term Rentals: Scammers have been known to rent Airbnb properties temporarily, showcasing them as available for long-term rent. Victims, after paying deposits, find out that the units are not available, resulting in losses up to RM5,000. Source: The Rakyat Post, April 28, 2025.
Sample Scenario (base on an actual case):
A property owner recently engaged a real estate agent from a registered agency to help rent out his property. The agent successfully found a tenant, collected the rental deposit from the tenant on behalf of the owner—but never passed the money to the owner. Instead, the agent disappeared with the funds. The agent has since moved on to join another real estate agency. The owner now wants to take proper legal action and hold the agent accountable for misappropriating the rental deposit.
Recommended Steps to Take:
Step 1: Gather All Evidence
The owner must compile a full set of evidence to build a strong case:
- Signed tenancy agreement (if available)
- Screenshots or records of communication (WhatsApp, email, SMS)
- Proof of payment from the tenant to the agent (bank-in slips, screenshots, receipts)
- Agent’s name, REN number, previous and current agency (if known)
- Statement or confirmation from the tenant about the deposit payment
Step 2: Lodge a Police Report
Go to the nearest police station and file a report for criminal breach of trust (CBT) or misappropriation of funds. Provide all documentation and details, including:
- Timeline of events
- Amount lost
- Evidence of the agent’s actions
This report is critical to initiate any criminal investigation and provides legal proof of wrongdoing.
Step 3: Lodge a Complaint with the relevant authority body
This agent’s conduct is a breach of the Malaysian Valuers, Appraisers, Estate Agents and Property Managers Act 1981.
Steps:
- Go to BOVEAP’s complaint page: https://lppeh.gov.my
- File a formal complaint against the agent. Include:
- REN number
- Timeline and evidence
- Police report
- Attach supporting documents
BOVAEP has the power to revoke or suspend a negotiator’s registration and can initiate disciplinary proceedings if the agent has violated ethical or professional standards.
Step 4: Inform Both the Former and Current Agencies
Although the agencies may not be directly responsible, it’s good practice to notify both:
- The agency the agent was attached to during the incident.
- The current agency he has joined.
Professional agencies may take internal disciplinary action or cooperate with the authorities. It also helps prevent the agent from continuing unethical practices elsewhere.
How to do it:
- Draft a professional complaint letter with evidence attached.
- CC both principal names and customer service emails.
- Request acknowledgement of the complaint.
Step 5: Consider Small Claims Tribunal (Tribunal Tuntutan Kecil)
If the rental deposit is under RM5,000, the owner can file a claim in Tribunal Tuntutan Kecil.
Where: https://ttpm.kpdn.gov.my/portal/
Why this matters:
- It’s a cheaper and faster alternative to civil court.
- The claim is against the agent personally, and possibly the agency if it was during their tenure.
If the amount involved is substantial or multiple victims, the owner may pursue a civil suit to recover the misappropriated funds:
- Engage a lawyer to issue a Letter of Demand to the agent.
- If there’s no response or settlement, proceed to file a civil case in the Magistrate’s Court (for claims below RM100,000) or Sessions Court.
This route allows the owner to legally compel repayment through a court judgment.
6. Clarify the Situation with the Tenant
If the tenant is currently occupying the property, it’s important to:
- Confirm the payment was made
- Issue a formal receipt (if appropriate)
- Sign a new or supplemental tenancy agreement directly between owner and tenant to avoid future misunderstandings
Step 7: Spread Awareness Cautiously
The owner may feel compelled to warn others, but do so carefully:
- Avoid direct accusations or naming individuals/agencies on social media, as this could result in defamation suits
- Instead, raise awareness about how to prevent similar scams, share tips on safe rental practices, and encourage tenants to always verify agent credentials
Additional Precautions and Advice
- Verify Agent Credentials: Always check the agent’s REN number on the BOVEAP website to ensure they are registered and authorized to operate.
- Avoid Cash Transactions: Make payments through bank transfers to official company accounts. Avoid paying into personal accounts to ensure traceability.
- Insist on Proper Documentation: Ensure all agreements are in writing and duly signed by all parties involved. This includes tenancy agreements and payment receipts.
- Be Cautious of Deals That Seem Too Good to Be True: If a rental offer appears significantly below market value, exercise caution. Scammers often lure victims with attractive deals.
- Educate Yourself: Stay informed about common scam tactics and share this knowledge with friends and family to prevent further incidents.
The rise in rental scams underscores the importance of vigilance and due diligence in property transactions. By following the steps outlined above and staying informed, you can protect yourself from falling victim to such fraudulent schemes.
If you’ve experienced a rental scam or have insights to share, please leave a comment below. Your experiences can help others stay informed and cautious.
Disclaimer:
This article is provided for general informational purposes only and does not constitute legal advice. Property owners facing similar issues are encouraged to seek advice from qualified legal professionals or contact the relevant authorities for guidance. MyPropertyPlaces.com and its representatives are not responsible for any actions taken based on this information.
