How Flatio protects tenants from rental scams

You may have recently heard about a multi-million dollar scam involving Airbnb and Vrbo rental properties.

As rental housing providers, we at Flatio are concerned about such fraudulent activities and believe every person deserves a safe and secure rental experience anywhere in the world.

In this blog post, we summarize the news to help potential tenants be vigilant when renting accommodation on online platforms.

We also highlight why Flatio is a secure option for renting accommodation online, with multiple measures in place to prevent fake listings.

How were tenants scammed?
How Flatio prevents fake listings and protects tenants
Fake Flatio representatives

How were tenants scammed?

Two men, Shray Goel and Shaunik Raheja, were recently accused of a fraudulent scheme on Airbnb and Vrbo that involved a total of more than $8.5 million.

They operated about 100 accommodations in 10 states in the United States under different names, allegedly double-booked accommodations, canceled guests with false excuses such as plumbing problems, and engaged in a secret bidding war in which they referred lower-paying guests to other accommodations.

The U.S. Attorney’s Office has charged them with wire fraud and identity theft. The defendants are also accused of racially discriminating against potential tenants.

How Flatio prevents fake listings and protects tenants

At Flatio, we strive to make the rental process as secure, convenient, and efficient as possible for our tenants from start to finish.

Below are some of the features and measures we have implemented for this purpose, which have contributed to us receiving a TrustScore of 4.5 out of 5 (excellent) on Trustpilot.

Flatio - Trustpilot score and reviews

Verification

Flatio currently has various verification processes and labels in place to ensure that fake listings do not find their way onto our platform. We are adding new, stricter verification steps that will be introduced in 2024.

Mandatory verification process for all landlords:

We personally contact each landlord before posting their listing on Flatio.
In cases of suspected scams, extra precautions are implemented:
- Landlords must upload ownership verification documents.
- Bank account verification is required, including uploading ID.

Tenant reporting:

We review every reported suspicion from tenants.
Tenants can directly reach out if they are unsure about the property's legitimacy or if the landlord is violating our rules.

‘Verified Landlord’ label

Landlords can earn a ‘Verified Landlord’ label by voluntarily uploading ownership verification documents.

Documents include a copy of the purchase/lease agreement, cadastre extract, or power of attorney.
Approval is granted if all internal conditions are met.

‘Tenant-Verified’ badge

We also have the ‘Tenant-Verified’ badge, which is given to listings where the previous tenant(s) have had a smooth move-in and move-out experience, as evidenced by either a positive review or no bad reviews from them.

Smooth move-in: A smooth move-in happens when the accommodation matches what was shown during the reservation request, there are no obstacles to moving in, and the tenant gets the key from the landlord. To confirm this, the tenant should sign the handover protocol and send an email to Flatio. Once confirmed, Flatio will send the first rent payment to the landlord on the next working day.
Smooth move-out: A smooth move-out means returning the entire accommodation to the condition it was in when the tenant first took it from the landlord. This typically involves general cleaning, packing all belongings (especially valuables like personal documents, money, and electronics), and having the landlord sign a takeover protocol to confirm the property is in proper condition.

Tenant reviews

In the landlord profiles and the property details, you can easily view the reviews posted by previous tenants to make an informed decision.

Virtual tours, in-person viewing

Virtual tours, available for certain listings, are an additional feature that can help you rent accommodation on Flatio with more confidence. You may also be able to view the listed properties in person if you coordinate with the landlord and receive confirmation from them.

Direct communication with landlord

On Flatio, it’s possible to:

Contact the landlord directly through our platform before booking.
Contact the landlord at their phone number and email address after the agreement has become valid, in addition to the possibility of contacting them via the ‘Messages’ section in the tenant’s profile.

Find perfect apartments for rent in Portugal

StayProtection for Tenants

StayProtection for Tenants is a package of services offered by Flatio in partnership with AXA to provide tenants with a higher level of convenience, protection, and peace of mind during their tenancy.

Here’s a list of the base services provided to every single reservation via Flatio:

Move-in Guarantee with a 24/7 emergency line
- Our Move-in Guarantee is a service offered, managed, and paid for exclusively by Flatio to assist in situations where the accommodation does not match the description provided at the time of the booking request, or staying in the original accommodation is not possible for other reasons and the condition cannot be rectified immediately.
- We have partnered with AXA Assistance to ensure that you have access to a dedicated 24/7 emergency number that can help you with unexpected situations during your move-in.

A lease agreement that:
- is visa-friendly
- is easy to read
- grants you the same rights as a landlord
- is available in multiple languages
- provides you with flexibility by allowing for only a 30-day termination notice during your stay
- can be easily extended or terminated
- is in compliance with all applicable laws

Deposit-free policy
- At Flatio, we have a deposit-free policy to avoid disputes and complications with deposit refunds. Landlords cannot ask for a deposit for stays of less than 180 days (6 months). For stays longer than 180 days, the landlord can decide whether or not to require a deposit.

Note: There are exceptions in certain regions where landlords are legally obliged to require a deposit, regardless of the length of stay.

No hidden fees
- The prices you see on Flatio are final, and there are no hidden fees.

Secure payment
- We have a simple and secure payment system that also allows you to pay with Bitcoin.

100% money protection
- This is one of our most important measures to prevent scams on our platform. When you make the payment through our secure platform, we keep your money safe and only transfer it to the landlord after you have successfully moved in.
7 days a week support
- Our Customer Care team is there for you throughout the entire rental period. You can contact us at any time and we will do our best to help you. All inquiries will be dealt with within 24 hours.

On top of all this, most of our landlords use our Rental Insurance which provides you with Stay Benefits for Tenants - Powered by AXA:

Assistance services (up to 500€ per lease)
- You can use the assistance services to deal with emergency situations in the accommodation, e.g. help with problems with the internet connection, electricity/gas/heating, a blocked door, or a faulty household appliance.

Liability insurance (up to 20 000€ per lease)
- If you accidentally cause damage to the property during your stay, the costs may be covered by the insurance. This applies to damage to:
  - the movable property constituting the landlord's furnishings;
  - the structural components of the residential unit (e.g. walls, windows, doors, kitchen unit).

24/7 emergency line for an immediate resolution of these issues

Please note that you are obliged to ensure that the insured event does not occur. In particular, you must not breach your obligations to avert or minimize the risk.

You can read more about when Stay Benefits apply and what they represent in this article.

Fake Flatio representatives

As already mentioned, we take the safety of our tenants very seriously, which is reflected in the various measures we have taken to this end.

However, what happens outside the Flatio platform is beyond the control of our team. And although we do our best to report such cases and inform our users about such fraudulent activities, we are not the competent authorities to deal with them.

For example, there have been cases of scammers approaching potential tenants on Facebook and posing as Flatio representatives by placing fake ads, registering domains similar to Flatio's with hidden credentials, and issuing fake invoices with Flatio’s name and logo.

Read this article to learn more about the details of such scams, Flatio’s response, and how you can report and protect yourself from such scams.

Stay vigilant!

How Flatio protects tenants from rental fraud like the recent $8.5 million Airbnb, Vrbo scam