How safe is buying or renting a house online?

Matilda* was excited as she searched online for a one-bedroom house. The young lady, who has recently cleared her third year at a Nairobi-based college, was looking forward on leaving the campus halls to reside in her own house.

“A few searches and I stumbled upon the perfect house on Mpaka Road in Westlands, Nairobi” she says, as she described her encounter with a conniving landlord on a local property portal.

“I linked up with the presumed landlord called Dr Mbugua on phone, who claimed to operate a hospital in Machakos. He had listed his number on the portal, and he later linked my guardian up with his wife, whom he referred to as Mama Sharon. She was to take me to the house after my guardian paid.”

The “wife” kept calling her for deposit, saying Matilda needed to pay if she (landlady) was to keep the house for her. They had described the one-bedroom bungalow as “big, smart, spacious and neat”.

“My guardian sent Sh12,100, and she kept asking for more — the deposit and one-month rent, which was coming to about Sh 24,000. I refused to send additional money and that was the last I heard from the two,” she says.

With money gone and the two numbers the landlady used not in use anymore, Matilda was lost for words, disappointed by the conniving nature of presumed landlords who showcased their houses online.

“I have a feeling I am not the only one who has fallen for such cons. They prey on the desperation of tenants looking for houses,” she said. “Furthermore, I have seen the portal being advertised on TV. Who would believe there were cons on the site?”

At a loss

When we called, Dr Mbugua revealed something else. “Yes I have a house on Mpaka Road, but I personally let it out to a lady called Anyango, who had paid the money,” he said. “I do not know of any other transaction that took place.”

“I operate alone. I do not give out houses through my wife,” he added, dismissing our phone call.

In other online links, the number is credited to one Syanda. Some pages bearing the number no longer exist on the portal.

We tried to reach the portal in regard to that matter with no success.

Like many conned individuals, Matilda did not see the need to report the matter to the police, saying: “What is the use?”

What redress is available for users like Matilda when conned on property advertising portals?

What to do?

According to Priscilla Muhiu, head of marketing and communications East Africa at online shopping website OLX, even though there is due diligence done on the ads by OLX, there is always a case for one to seek help from the police in case the worst happens.

“All advertisements are checked before they go live. However, in case a user is defrauded, they should report to the police immediately, then to OLX for us to investigate and as well as take down the fraudulent advertisement,” she says.

Jamie Pujara, CEO and co-founder of BuyrentKenya, an online property portal, says that his team has the capacity to investigate cases on their own.

“We encourage users to report a listing if they feel it is fraudulent and upon receipt, we investigate it ourselves with urgency, temporarily take the listing down until the claim verified. We take this issue very seriously and hence the very reason of making sure we put as many genuine properties online as possible,” he says.

And what are some of the security features these portals have to protect users from fraudsters?

Buyrentkenya, which was voted the Best Marketing Internet Property Portal in 2014, says they have a hands-on policy when it comes to verifying the authenticity of agents and properties.

“To protect users of the site, we first scrutinise the agents and authenticate their profiles, including visiting their physical location. We also evaluate and approve genuine quality property listings,” says Pujara.

“We encourage our advertisers to give as much information as possible when listing a property so that the user can make a decision on whether they want to pursue it or not. We also try our level best to ensure agents have the authority to sell or let on behalf of the owner.”

Since the portal was launched in 2012, it has been registering steady growth in traffic.

According to Lizzie Costabir, the marketing manager, the website has a traffic of over 150,000 visitors who access more than 40,000 accredited market listings, compared to 60,000 visitors and 10,000 property listings at inception.

OLX, which launched a real estate category a few months ago, uses technology to track all users.

“We recently launched mandatory mobile phone log in and verification. In case of any anomalies, we can work with law enforcers to track the numbers since all numbers are registered using an ID,” says Muhiu. “We also have a feature which automatically deletes ads from users previously marked as fraudsters.”

Besides landlords and agents who go missing after receiving money, there are many users who report that landlords and agents mislead tenants with the wrong information on the properties displayed, the amenities and even extra costs that the tenants should pay.

Complaints

A quick look on consumer websites and blogs in the country reveal unsatisfied tenants, who are taken for a ride by landlords and property developers. Pujara explains that with online marketing, everything, including price changes, should be up-to-date.

“It’s a challenge to get people to upload enough photos and to put detailed descriptions. Getting people to keep their properties updated is also an uphill task. If there is a price change, it is important that it’s reflected on our site,” he says, adding: “Most importantly, it’s getting the advertiser to respond to the person interested in a timely and accurate manner.”

He adds that they are in constant communication with their advertisers to ensure up-to-date information and that their property listings are still on the market.

Most local firms are now aware of the power of online groups like #KOT (Kenyans On Twitter) and the negative publicity they can give their firms.

Sometime last year, #KOT picked up the mismatch of prices on the shelves and in the counters for retail giant Nakumatt that forced Consumer Federation of Kenya to investigate.

The firms have now devised ways to have users report such mismatches.

”Our users are advised to make use of the report ad function on the OLX site giving full details of the mismatch. Alternatively, they can contact OLX immediately via our user support channel,” says Muhiu.

Trust your instincts

Rebecca Kwanga, a director at Father’s Hand Limited, which runs the sleepsharestay.com website where hosts with extra space in their houses rent it out, explains that with the popularity of online marketing, one needs to know the person they are dealing with.

“One has to ask the right questions, know what the other person does, ask for ID and if possible, visit the place to know more,” she said. “At the end of the day, one has to trust their instincts.”

She said they look out for hosts whose first concern is money or the ones pushy with the request to send cash.

“This is a red flag; they are most likely con-artists.”

For Matilda, the loss of her money and the trauma the landlord took her through made her delete all the contact  numbers she had in frustration. “What was the need to keep the numbers?” she asks.