Practice Caution When Depositing Money For Rent

When one is looking for a place to stay, it involves a lot of looking, one can never settle on the first house. The things people look at are where you work, where your children go to school, social amenities around plus if they allow pets or dogs in the compound.

When Mercy Njoroe was searching for a house, she was relieved that her search has come to an end. Mercy was starting to see herself in that house. She could not wait for the time for her to move in her new house

But trouble started early. Her supposed ‘landlord’ had requested that she deposits part of the rent as a show of commitment. (Security deposit)

“I deposited some money, which was supposed to be the security deposit with the thought that the search for a house had ended,” Mercy remembers

However, to her shock, when it was time to move in, the ‘landlord’ had vanished and was nowhere to be seen.

“I had deposited ksh 80,000/- as rent but later realized that the house had already been rented out to someone else and he vanished,” she adds.

So both Mercy and the other tenant had been coned!

Mercy is not the first victim of such a scam. A number of tenants have had their hard earned money stolen  in the name of  security depositing as” commitment” to the house.

Paul Nyamueya, Real Estate Agents from Ujenziplan based in Westlands , Nairobi  does not understand why the requirement to deposit money on rent as a show of commitment, has become the new norm.

Such challenges he says are becoming problematic and must be addressed by all means.

“These are some of the things that would be sorted by the government, once the law required every agent to be registered is passed by the Kenya Real Estate Board. Because the law guarantees that tenants will be dealing with registered agents that have physical addresses,” Paul says, “Also note, it is not written anywhere that you must commit on a rental by depositing part of the rent value.” He adds  

In this way, he says, chances that tenants are defrauded will be limited because the law carries repercussions under which a fraudulent agent would be dealt with.

However in the meantime, Paul says, what is important, as we wait for the law to be passed, is for tenants to exercise due diligence before depositing any money.

“Tenancy agreements are not a luxury but a must. Witnessed by lawyers or at worst local council officials to mitigate fraud,” he adds.

“Please don’t pay any money upfront for fear of the house will be taken buy another tenant”  Paul cautions “always insist in meeting in the landlords office, ask the watchmen, caretaker, or even the tenant living in the  premises on who owns the house.”

Tenants can also verify agents by checking membership associations or companies that’s they belong or work in.

“Truth is, no one is ‘watching’ what is happening in the sector. All has been left ‘to whom it may concern’. We don’t even have data of what is going on. I think the real estate sector has been let down,” Paul  says.