Uliana tkachenko
Rent real estate and not become a victim of scammers
After the financial crisis of 2008, the phenomenon of rental fraud became very widespread in Ukraine, especially in big cities like Kyiv. The reason is simple - with a high demand for a living space and even higher real prices for the most modest apartments, rental scams, by proposing a lucrative offer for a living space, became highly efficient in finding gullible victims and making easy criminal money, leaving many people broken - both morally and financially. The common model of such frauds lies in making potential customers pay the initial transaction or part of the rental sum (for example, for the first months) or to sign the contract before settlement for the apartment that does not exist or is not planned to be rented out at all. From the one hand, people should be aware that such situation may happen and be very cautious. From the other hand, when this phenomenon is so common nationally, we as investigation journalists must build a precedent in the public space concerning such rental frauds, so that people and, most importantly, state institutions make practical steps in order to make such fraud cases less prominent and less accepted as a status quo.
Not so many years ago, when the Internet was not so broadly spread people used periodic magazines and newspapers to sell, buy, either rent or rent out people's apartments. At the time there were few ways of dealing with real estate: you could walk around neighborhood and search for some self-posted ads that other people used to hang on the doors. Basically this method is still popular, especially in small towns and villages. The other way was to buy a real estate magazines (usually every week) and dig through a numerous pages looking for a perfect flat. That time there were no filters or sort by options so it was not that easy but you didn't need to run around the city. With the rise of the Internet some of those magazines have turned themselves into a webpages most of the people using nowadays. Yes, today it has become more comfortable to post or search but also has became more dangerous because now anyone can make an ad for free and many of them are fake. Moreover, nobody check and moderate those ads or they are doing it very badly. Thats why now we are having so many swindlers in the real estate market. Today anyone can be a «broker» in the Internet and what is more serious - such people now have access to thousands of costumers who are desperately need a house and so they are an easy target group for those swindlers.
Andrii, who is a real estate broker from «Blagovist». He works already eight years in this business and have seen different stuff. I asked Andrii what's the best way to rent a flat and not to be robbed.
«Of course the most safe way is always to go to a professional real estate agencies where there are a big data base of clients and real properties. And these kind of agencies update their web-sites every day. But today there is a big problem on broker market. People don't trust even them because there are few realtor companies who offer fake apartments sometimes. Also good agencies as «Blagovist» are usually more expensive and our people are mostly always trying to find the cheapest but often not the most safe way to buy, or sell, or rent flats and houses. Now most of our clients are only business customers, some upper class customers and foreigners. Thus to find new clients we also need to post ads on real estate websites but when people hear that it's a real estate agency on the phone, almost half of them think that it's a scam and don't want to deal with us»
One of this realtor companies who has fake apartments is «Inter-community». Few months ago I faced with this company by myself and almost became a victim of the fraud. There is one famous independent media outlet - intentionally promotes posts of the rental companies, which receives an improper unofficial payment for that (http://fn.ua). Sometimes on the website you can find a link from big real estate companies (lun.ua, blagovist, etc). But sometimes there ads about the phantom flats. I found a good flat for a good price and decided to call on contact number.
«My name is Anna from Agency. How can I help you?» I wasn't sure that I called to right person. That's why I decided to ask what agency they are. «Agency of real estate» told me Anna. But she couldn't answer me what the name of the agency. «Just agency». After that Anna told me, that if I'm interesting in some flats I need to go to their office and sign a contract with them. Sign a contract means that I need to pay 380 hrivnas and they give me an access for private website where there are lots of propositions with flats. I understood that something wrong with this company but decided to figure out what exactly.
«My name is Anna from Agency. How can I help you?» I wasn't sure that I called to right person. That's why I decided to ask what agency they are. «Agency of real estate» told me Anna. But she couldn't answer me what the name of the agency. «Just agency». After that Anna told me, that if I'm interesting in some flats I need to go to their office and sign a contract with them. Sign a contract means that I need to pay 380 hrivnas and they give me an access for private website where there are lots of propositions with flats. I understood that something wrong with this company but decided to figure out what exactly.
The office is situated in the city center in dwelling house. On the doors it's said «Travel professional group». Anna met me near the doors and invited to the small room with 3 more working people.
It took no more than 3 minutes to sign the contract. No passport, no phone number, anything. Just 380 hrivnas and login for «private website» Inter-flats (http://inter-flats.com.ua) with lots of options. This private website is open for 14 days from the day of signing the contract. Anna told me, that if I have any questions I can call to administrator.
There was one more strange thing. The contract is on Russian language. But by the law all official documents need to be written on Ukrainian. Moreover, on one page of contract there are two different names of the company. «ООО Інтер-Комьюнити» and «ТОВ Інтер-Комьюнити». But I will right later about company at all.
I'm pretty sure that there are lots of victims of the fraud. I was in that room no more then 5 minutes. At that time 4 times the phone was ringing and other people on the room arranged the meetings with potential lessees.
Jenia is one of this victims. I met him near the company's doors when I already signed my contract. He, as I am, tried to find a flat for renting. We had a small conversation and I asked what is he looking for.
Jenia is one of this victims. I met him near the company's doors when I already signed my contract. He, as I am, tried to find a flat for renting. We had a small conversation and I asked what is he looking for.
«I moved to Kyiv half a year ago to find a job and earn something for a living. You know, I am from a small town in Mykolaivska oblast, and all my friends, or even people of my age, try to go to a big city - there is no work at home, and when there is - salaries are desperately low. Anyway, I was lucky - my uncle worked in a building company near Kyiv, and he offered me my first employment as a builder - hard job, but I didn't mind. What I was anxious about is how to find a place to live - room, flat, whatever. Competition is crazy high, plus there are so many scums, so I tried to be smart and fast. I ran into this company «Inter-community» that had some really good offers on a plate, like reasonably good - not some luxury stuff for 10000 hrivnas, but a very market ones, and they were taken super rapidly - like new offer in the morning was already taken by midday. So, when I saw another cool offer of a small flat near the Kyiv outskirts, I didn't think twice - I called the guy from «Inter-community». He told me that they have their rules and I need to sign the contract with this company before I can see flat. Or I would lose the flat to somebody else. And now I'm here. Can't wait to rent a flat»
That day, when I met Jenia, I decided to take Jenia's number and check later how is his rental process going. I really hoped, that the company «Inter-community» has not on their database only fake flats, but also a real ones. I was afraid to call Jenia after half a mounth. I didn't want to hear that he didn't rent flat and was robbing of money.
«Do you remember I told you, that the guy asked me to sign the contract. I was doubt a bit, but unfortunately, I foolishly accepted his offer. And I signed it and paid 380 hrivnas. After that the man from «Inter-community» gave me a phone number of flat's owner Vadim and told me, that I can call him. We arranged our first meeting with Vadim (I thought that he was an owner, but in fact he wasn't). I wasn't shown the flat, as there were still people that haven't moved out, but the guy was very trustworthy, the contract was very legit, and the photos of the flat were realistic. The next day, or day after, I was trying to call him - the number was non-existent, there were no profiles on social networks - nothing. The company's support said that such situations occur from time to time, and they will look at this matter, but they are not responsible for the actual scum - and they were right, I had no legal proof or real evidence that scum happened. I lost the money that my parents earned very hard - I was ashamed of how stupid I am. That was a very devastating and hard experience, and I still try to search for a normal flat but now I can't believe anyone»
After long searching process I tried to find other people who was robbing by the agency. And finally I met Dasha, a friend of my friend, who told me almost the same story as Jenia had. But it was almost 4 years ago.
«The situation was really hard at my life. I was living with the girl at a good place, but when once you understand that you don't have anything in common you have to move forward. The same happened to me. I was searching a new job, finishing the institute and I had to find a new flat. The problem is that I had only two weeks to find something. Time was passing by and there was no flat I wanted to live in.
One day I opened a website with the propositions of different flats and finally I found the one I wanted. It was located in Podil district and the price was really good about 3000 hrivnas. So I started to call by the number I got. The girl picked up the phone and introduce herself as the agent of the owner of the flat. I have already heart about different types of fraud with flats in Kyiv, but I really needed a flat that is why I decided to try.
The girl told me that I had to come to this office to get the number of the owner and than she added that I had to pay around 320 hrivnas (4 years ago). The price was okay for me and I accepted the proposition.
I came to the office the next day, met the girl. She explained me everything and gave the number. For the first time I called from their office, really nice woman picked up the phone and set the day for me to look at the flat. I was going there at the evening at 18.00 At half past five in the evening I called again and nobody was at the phone. I tried again, and again but without any results.
The next day I went to the office of the company that gave me the number, but they told me that they have such a situation for the first time and they would do their best to find out what have happened. I was waiting and waiting but my time was over.
I moved out from the flat I was living in and went to my parents place. Only in three years I moved to my own flat, but this time I was trying to find the announcement from the owner without help of the agents»
One day I opened a website with the propositions of different flats and finally I found the one I wanted. It was located in Podil district and the price was really good about 3000 hrivnas. So I started to call by the number I got. The girl picked up the phone and introduce herself as the agent of the owner of the flat. I have already heart about different types of fraud with flats in Kyiv, but I really needed a flat that is why I decided to try.
The girl told me that I had to come to this office to get the number of the owner and than she added that I had to pay around 320 hrivnas (4 years ago). The price was okay for me and I accepted the proposition.
I came to the office the next day, met the girl. She explained me everything and gave the number. For the first time I called from their office, really nice woman picked up the phone and set the day for me to look at the flat. I was going there at the evening at 18.00 At half past five in the evening I called again and nobody was at the phone. I tried again, and again but without any results.
The next day I went to the office of the company that gave me the number, but they told me that they have such a situation for the first time and they would do their best to find out what have happened. I was waiting and waiting but my time was over.
I moved out from the flat I was living in and went to my parents place. Only in three years I moved to my own flat, but this time I was trying to find the announcement from the owner without help of the agents»
I don't want to judge «Inter-community» and say, that they have all their fake flats. I can't check every flat. But there are some facts about the company:
- the owner is Kiseliov Mykola, who are originally from Donetsk region
- share capital of the company is just 1000 hrivnas
- officially field of activity of the company is wholesale and retail, repair of motor transport
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- when I tried to get to Inter-flats website, I couldn't do it because my login from the contract was already exist. After few telephone calls to the administrator of the agency they finally gave me an access to the website
- you can see by yourself how the website looks like. No photos, no contact names, sometimes even no streets. Just the price and a contact number.
We understand that the main player of the fraud is agencies. But another players of this fraudulent scheme are owners of apartments, which the agents (realtors) allegedly must show to the potential lessees.
We were told about the scheme of the fraud from Sergey, 29-years old owner of a three rooms apartment on Zolotovoritska Street in Kyiv. Sergey told us that a reputable realtor offers him 120 hrivnas per each visit. For the past year, he earned around 7000 hrivnas and it's really easy money. Often realtors call in the morning and asks whether they can come to the apartment in the evening time with potential lessees. Additionally, they ask Sergey to be available for a phone call, if they will have to call him and ask him to sign the lease agreement. As mentioned in the description above, Sergey must inform the realtor that he has already signed the lease agreement with another lessees.
We were told about the scheme of the fraud from Sergey, 29-years old owner of a three rooms apartment on Zolotovoritska Street in Kyiv. Sergey told us that a reputable realtor offers him 120 hrivnas per each visit. For the past year, he earned around 7000 hrivnas and it's really easy money. Often realtors call in the morning and asks whether they can come to the apartment in the evening time with potential lessees. Additionally, they ask Sergey to be available for a phone call, if they will have to call him and ask him to sign the lease agreement. As mentioned in the description above, Sergey must inform the realtor that he has already signed the lease agreement with another lessees.
The scheme works as follows:
- the agents finds an owner of a nice apartment in the city downtown and asks him/her to play the role for the lessor. In particular, the apartment owner must give the keys to the apartment to the realtor, so the realtor could show the apartment to the potential lessees, when the owner of the apartment is not at home.
- the realtor finds potential lessees and offer them to show the available apartments (which are "fake" apartments, since their owners do not intend to lease them out);
- if the realtor feels that the potential lessee likes the apartment, he says that unfortunately, the owner of the apartment has recently increased the amount of the lease payment by approximately 100 US dollars (for example). While most of the lessors cannot afford such an increased lease payment, they ask the realtor to find another options.
- if the potential lessee agrees to the increased amount of the lease payment, the realtor happily informs the potential lessee that the everything is ready for signing of the deal, shows the blank lease agreement and asks the potential lessee to start filling the agreement. When the potential lessee thinks that everything is great, the realtor calls the owner and says that he/she has found "an incredibly decent and great lessee" and that everything is ready for sining of the lease agreement, the fake owner informs the realtor that just a couple of hours ago he has found the new lessors of his apartment. If necessary, the realtor turns on the speaker on his prone and asks the "owner" to repeat this to the potential lessee.
- after the failure to sign the lease agreement, which, according to the realtor, accrued only due to the "owner's" fault, the realtor informs the potential lessee that he needs more time to find another great apartment in the downtown. If the realtor feels that the potential lessees like the apartment and are satisfied with his work, he may say that such the potential lessees must pay additional payment for the realtor's additional services if they really want to find a nice apartment in the downtown.
- the realtor pays some agreed amount of money to the owner of the apartment for his services of the fake lessor.
In any event, after playing this performance, the potential lessees have a feeling that the realtor has done his/her best for finding the apartment. Moreover, when they see the great apartment in the downtown, touch the furniture and receive assurances from the realtor that right tomorrows they can start living in the downtown, the potential i lessees are quite often ready to pay the money for the realtor's additional services. Unfortunately, in Ukraine right now, court process takes so many time. That's why almost all people decide tot to do more problems for themselves and don't fight for their rights.
- the agents finds an owner of a nice apartment in the city downtown and asks him/her to play the role for the lessor. In particular, the apartment owner must give the keys to the apartment to the realtor, so the realtor could show the apartment to the potential lessees, when the owner of the apartment is not at home.
- the realtor finds potential lessees and offer them to show the available apartments (which are "fake" apartments, since their owners do not intend to lease them out);
- if the realtor feels that the potential lessee likes the apartment, he says that unfortunately, the owner of the apartment has recently increased the amount of the lease payment by approximately 100 US dollars (for example). While most of the lessors cannot afford such an increased lease payment, they ask the realtor to find another options.
- if the potential lessee agrees to the increased amount of the lease payment, the realtor happily informs the potential lessee that the everything is ready for signing of the deal, shows the blank lease agreement and asks the potential lessee to start filling the agreement. When the potential lessee thinks that everything is great, the realtor calls the owner and says that he/she has found "an incredibly decent and great lessee" and that everything is ready for sining of the lease agreement, the fake owner informs the realtor that just a couple of hours ago he has found the new lessors of his apartment. If necessary, the realtor turns on the speaker on his prone and asks the "owner" to repeat this to the potential lessee.
- after the failure to sign the lease agreement, which, according to the realtor, accrued only due to the "owner's" fault, the realtor informs the potential lessee that he needs more time to find another great apartment in the downtown. If the realtor feels that the potential lessees like the apartment and are satisfied with his work, he may say that such the potential lessees must pay additional payment for the realtor's additional services if they really want to find a nice apartment in the downtown.
- the realtor pays some agreed amount of money to the owner of the apartment for his services of the fake lessor.
In any event, after playing this performance, the potential lessees have a feeling that the realtor has done his/her best for finding the apartment. Moreover, when they see the great apartment in the downtown, touch the furniture and receive assurances from the realtor that right tomorrows they can start living in the downtown, the potential i lessees are quite often ready to pay the money for the realtor's additional services. Unfortunately, in Ukraine right now, court process takes so many time. That's why almost all people decide tot to do more problems for themselves and don't fight for their rights.
This investigation is required in the further study of the issue of the lease of real estate.
Everyone for himself can decide who is right, who is not. In the text above I showed that sometimes there are scams with real estate rental. So if you want to rent a real estate, you just need to be more attentive and try to get detailed information about brokers and real estate owners.
Everyone for himself can decide who is right, who is not. In the text above I showed that sometimes there are scams with real estate rental. So if you want to rent a real estate, you just need to be more attentive and try to get detailed information about brokers and real estate owners.
