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Property agencies face AI-driven rental scams

by Azwidohwi Mamphiswana
August 31, 2025
in Business, Top story
Reading Time: 4 mins read
A A
AI is making rental scams harder to spot in South Africa’s housing market

AI is making rental scams harder to spot in South Africa’s housing market

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From cloned voices to AI-enhanced property photos, the property rental landscape in South Africa is being reshaped and not always for the better.
Small property agencies are now facing a surge of AI-driven rental scams, with fake listings, forged documents, and even deepfakes threatening both tenants and landlords..
Pearl Scheltema, CEO of Fitzanne Estates, explained that the scams had grown more sophisticated.
“AI could generate fake property listings, forge official documents, and even produce deepfake videos of supposed owners or agents,” she said.
But it was the real-life experiences of small agencies and landlords that revealed just how damaging these scams had become.
Thandeka Sibanyoni, a landlord and agent, recalled an elderly client who had lost a large sum to a fake agency.
“There was no documentation showing where the property was located,” she said.
“All that remained was money gone and trust broken.”
Social media scams are also on the rise.
Real estate agent Sebolelo Makoanyane recounted a case she had seen on Instagram and TikTok.
“Scammers advertise properties with attractive features, creating the illusion of high demand, and pressure people to pay deposits. Sometimes, they even have accomplices at the property to make it look like others were interested.
“The rule is simple: never pay until you have seen the property inside and out.”
Another landlord, Deandra MacDonald, recalled how she was contacted by three people in one week checking if her listings were perhaps scams.
“In each case, the answer was yes. Tenants should never send money or personal information before visiting the property, and a legitimate lease must be signed with the actual owner,” MacDonald advised.
Other red flags include landlords or agents who refuse in-person meetings, pressuring tenants to pay upfront fees before viewing a property, or providing vague or inconsistent property details. For landlords, the best protection is a thorough tenant vetting process, which includes verifying employment history, checking references, and ensuring that rental payments could be made consistently.
Experts have confirmed the scope of the threat.
AI tools can replicate voices, create video walkthroughs, and generate documents that look authentic. Sipho
Mkhize, a Computer Systems and Engineering graduate from the Tshwane University of Technology , noted that one scam could reach hundreds of potential tenants almost instantly, putting smaller agencies at a distinct disadvantage.
“AI doesn’t just automate scams, it amplifies them,” he said.
Some agencies had fought back by combining technology with human-centred practices. Blockchain-based document validation and AI-powered identity checks had become essential tools, while thorough tenant vetting, in-person walkthroughs, and clear communication helped restore trust.
Consumer watchdogs advised tenants to check agency registration with the Property Practitioners Regulatory Authority (PPRA) and confirm listings directly with property owners. Landlords were urged to verify employment histories, check references, and ensure tenants could make consistent payments.
These scams had real consequences for property owners: prolonged vacancies, unpaid rent, and legal disputes. Small agencies, without corporate resources, were particularly exposed, with every fraud not only costing money but also eroding client trust.
AI represents both a threat and a wake-up call for the property market.
“Scams don’t just cause financial losses; they create emotional distress for victims. Agencies should embrace vigilance, innovation, and trust to protect clients, maintain credibility, and even turn these challenges into a competitive advantage”, Scheltema said.
Azwi@vutivibusiness.co.za
Tags: AI and rentalAI and scamsThandeka Sibanyoni
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