KUALA LUMPUR (Jan 30): Rental fraud cases in Malaysia are rising sharply, with tenants—particularly students, expatriates, and first-time renters—reporting mounting financial losses and limited enforcement outcomes, despite police reports being lodged.
According to police data cited by local media, reported rental scam cases surged from 184 incidents in 2023 to 922 cases in 2025, representing an increase of more than 400% within three years. The trend has been most pronounced in major urban centres such as Kuala Lumpur and the Klang Valley, where rental demand remains strong amid constrained affordability.
Fraudsters are increasingly exploiting online property portals, impersonating registered agents, and misusing Real Estate Negotiator (REN) numbers to make fraudulent listings appear legitimate. Foreign renters and students unfamiliar with local rental procedures are among the most frequent targets.
One victim, a 25-year-old renter who requested anonymity, shared that he was urgently searching for accommodation after being evicted. He came across a fully furnished two-bedroom unit at a relatively new serviced residence along Old Klang Road, advertised at RM1,750 per month, with a substantial upfront deposit.
Although the rental rate appeared unusually low for the location, desperation led him to proceed with a viewing. After a brief walkthrough by an assistant, he was instructed to pay the deposit in multiple instalments and was assured that minor defects would be fixed before key collection.
The listing disappeared from the portal a day before the scheduled handover. Realising he had been scammed, the renter lodged a police report. Attempts to alert the building management were met with indifference, with staff reportedly indicating that similar incidents had occurred previously. No recovery of funds followed.
Another case involved Katrina, a 57-year-old visitor from the UK who had previously lived in Malaysia for two decades. While planning a short stay in Kuala Lumpur, she searched for accommodation and identified an upscale serviced apartment in Bukit Bintang advertised online at RM700.
Upon meeting the agent, she was told the actual rental was RM2,000, a clause buried within the fine print of the agreement. Concerned about being left without accommodation, she reluctantly paid the higher amount and documented the transaction.
Even then, she was forced to wait for hours before receiving the keys, following heated disputes. Online reviews later revealed that some tenants never gained access to their units at all. While Katrina managed to recover part of her deposit after persistent complaints, building management indicated such incidents were not uncommon.
A more severe case was shared by Hisham Lee, a 25-year-old content creator from Sarawak. Shortly after relocating to Kuala Lumpur in late 2024, he attempted to rent a room at a condominium in Bangsar, near the Universiti LRT station.
The scammer posed as a representative of the building’s management, using authentic-looking documents and stolen photographs. The room was advertised at RM600, inclusive of deposit. Over several transactions, Hisham transferred RM1,500, only to discover the listing was fraudulent.
With no immediate accommodation, he incurred an additional RM1,200 in short-term lodging costs, bringing his total losses to RM2,700. Despite filing a police report, he later learned from building management that he was likely the 15th victim targeted by the same individual. Even after the case gained public attention, the scammer’s bank accounts remained active.
Rental scams are becoming more sophisticated, with fraudsters hijacking the identities of legitimate property agents. A registered real estate negotiator active on social media reported that her name, photo, and contact details were misused in a scam involving a duplex in Banting, Selangor.
She explained that she had been unknowingly linked to a problematic property tied to auction proceedings and unresolved financing issues. After discovering the misuse of her identity, she lodged a police report and warned the public to exercise caution when dealing with unfamiliar listings.
Such incidents have raised concerns across the real estate industry, particularly in high-demand areas offering commercial property in KL, office space in Bukit Jalil, and rental housing near industrial property in the Subang area and factory zones in Puchong, where worker accommodation demand remains strong.
While digital property platforms have improved market access, insufficient verification processes may unintentionally enable fraudulent listings. Victims often suffer not only financial losses but also emotional distress, with personal information repeatedly misused across platforms.
Industry observers note that stronger collaboration between platform operators, regulators, universities, and landlords is needed to protect vulnerable renters, especially students and foreign workers.
As Malaysia continues to attract investment into industrial land in Selangor and expand its employment base, rental demand around industrial corridors and commercial hubs is expected to remain high—making stronger safeguards increasingly critical.
Prospective tenants are advised to take the following precautions:
Verify the property’s existence and condition through in-person viewings or live video walkthroughs.
Confirm agent credentials, including REN registration details, with the relevant authorities.
Avoid making payments before viewing the unit and verifying ownership or leasing authority.
Be cautious of pressure to transfer money quickly, which is often a red flag.
Use traceable payment methods such as bank transfers; avoid cash payments.
Ensure a written tenancy agreement clearly outlines rental terms, duration, and obligations.
Compare rental rates within the same area to identify unrealistically low offers.
Confirm key handover arrangements, ensuring keys are released only after agreements are finalised.
The sharp rise in rental scams highlights the urgent need for stronger verification systems, enforcement mechanisms, and public awareness, particularly in urban centres such as Kuala Lumpur and Selangor. As demand continues to grow around commercial property in KL, office hubs in Bukit Jalil, and industrial zones across the Klang Valley, safeguarding renter confidence will be essential to maintaining a healthy and transparent property market.
Malaysia