KUALA LUMPUR, July 12 — As more Malaysians move to Kuala Lumpur in search of work and higher education, securing a place to live has become one of the first challenges many face.
But for a growing number of first-time renters, the search for a home is ending before it even begins — with thousands of ringgit lost to increasingly sophisticated rental scams.
Police recorded 922 rental scam cases in 2025, nearly three times the 307 cases reported in 2024 and a sharp increase from 184 cases in 2023.
The figures, released earlier this year, reflect how scammers are exploiting the growing number of people turning to online platforms to find accommodation.
Experts say many victims are unfamiliar with standard rental procedures, deposit requirements, and the steps needed to verify whether a property listing or agent is legitimate.
The knowledge gap
For many first-time renters, especially those relocating from other states, renting a property can be unfamiliar territory.
Alex Loh, 35, a real estate negotiator with Kommons Realty, said scammers often prey on that lack of experience.
“First-time renters may not be familiar with the proper procedures, such as paying earnest deposits only to registered agencies instead of private bank accounts,” he said.
“Even experienced renters may not know how to distinguish licensed real estate agents from unlicensed individuals.”
Kar Wai Low, marketing director at PropertyGuru and iProperty Malaysia, said rental scams have become increasingly sophisticated as more property searches and transactions move online.
She said scammers commonly create fake property listings, impersonate estate agents, clone WhatsApp and social media accounts, build fraudulent websites, reuse genuine property photographs, and request deposits for homes that either do not exist or are no longer available.
“Scammers take advantage of that uncertainty, especially in high-demand or affordability-sensitive areas where renters may feel pressured to act quickly before losing a unit.
“Listing quality, verified agent information, platform trust signals, and consumer education all play an important role in creating a safer property search experience,” she said.
The true cost of renting in KL
Beyond finding a suitable property, many first-time tenants are also surprised by the amount of money required before they can move in.
In Kuala Lumpur, renters are typically expected to prepare an upfront payment equivalent to about three-and-a-half months’ rent.
This usually consists of a two-month security deposit, one month’s advance rental, and a half-month utility deposit.
For an RM2,000 monthly rental, tenants may need to pay about RM7,000 upfront before moving in.
This excludes additional costs such as tenancy agreement stamp duty, access card deposits, and parking fees.
Loh said these deposits are standard industry practice and are intended to protect landlords against unpaid rent, property damage, and outstanding utility bills.
“Deposits should not be transferred into an agent’s personal bank account, but instead to the registered agency or a verified landlord,” he said.
Low said renters should ensure every payment is documented with official receipts and clearly reflected in the tenancy agreement.
She added that tenants should understand the purpose of each payment, whether it is refundable, and the conditions for recovering their money at the end of the tenancy.
How the scams work
Police have repeatedly warned that scammers often copy photographs from genuine property advertisements before reposting them online at unrealistically low prices.
Once a victim makes contact, conversations are usually moved to WhatsApp, Telegram, or other social media platforms, where renters are pressured into paying booking fees or deposits before viewing the property.
In many cases, the advertised unit either does not exist or is not owned by the person claiming to be the landlord or agent.
Bukit Aman Commercial Crime Investigation Department director Commissioner Datuk Rusdi Mohd Isa has previously warned that syndicates frequently change phone numbers and bank accounts to avoid detection.
Protecting yourself
Industry experts say one of the simplest ways to avoid becoming a victim is to never transfer money before viewing the property and confirming the identity of the landlord or authorised agent.
Listings advertised at prices significantly below market rates should also be approached with caution, particularly if renters are pressured to make immediate payments.
Low advised renters to verify both the property listing and the individual handling the transaction before transferring any money.
“If someone claims to be an agent, ask for their REN, REA or PEA registration details and verify their credentials through the Board of Valuers, Appraisers, Estate Agents and Property Managers where possible,” She said.
REN, REA, and PEA registration details are official registration records that verify whether a person is authorised to work as a property negotiator or estate agent in Malaysia.
Rental platforms such as PropertyGuru and iProperty also allow users to identify verified agents through verification badges and registered information.
Loh encouraged prospective tenants to inspect the property whenever possible and ensure it matches the online advertisement.
“Ask for the agent’s name card and REN tag, then verify the agent’s details through the LPEPH website search function,” he said.
Experts also recommend keeping copies of receipts, screenshots, signed documents, and all communication throughout the rental process.
Why tenancy agreements matter
Even after finding a legitimate property, renters should not overlook the tenancy agreement.
The legally binding contract outlines important terms, including the rental amount, tenancy period, deposit conditions, maintenance responsibilities, and procedures for ending the tenancy.
In Malaysia, tenancy agreements must also be stamped by the Inland Revenue Board (LHDN) to be legally recognised if disputes arise.
Before signing, tenants should carefully review every clause, particularly those relating to notice periods, repair responsibilities, and the condition of the property.
If you’ve been scammed
Anyone who believes they have fallen victim to a rental scam should lodge a police report immediately and contact their bank to request a transaction freeze or possible recovery of funds.
Victims can also contact the National Scam Response Centre by calling 997.
As more Malaysians continue moving to Kuala Lumpur, experts say understanding the rental process remains the best defence against increasingly convincing scams.
Knowing how deposits work, verifying landlords and agents, and refusing to make payments before completing the necessary checks can help ensure the search for a new home does not end in financial loss.
