With holiday rental fees starting at around 1,250.00 euros per week for a luxurious 2-bed, 2-bathroom apartment with seafront location, it is hardly surprising that sooner or later a determined gang of fraudsters should target the luxury holiday rentals market and con at least half a million euros out of tourists coming to Marbella for the sun, fun and glamour.
Now Spanish police have arrested five people in connection with this crime. First data released to the media shows how relatively easy it is to defraud holidaymakers coming to the Costa del Sol. Beware of repetition and avoid the pitfalls of online booking!
Marbella's Holiday Home Lettings Scam
The alleged fraudsters were aided in their illegal activities by two factors:
• Marbella's luxury property market has seen unprecedented demand since the Spanish property market crashed at the start of 2008. It is, in fact, leading the recovery in Andalusia, because foreign demand for luxury villas and penthouses outstrips local supply.
• The luxury rental market at the Costa del Sol has seen rental prices soar, not just for holiday rentals, but also for long-term rentals. It has become "chic" to rent for a while, rather than plunge straight into relocation and property purchase.
The five people arrested stand accused of operating websites that advertised upmarket properties for very competitive prices. When holidaymakers wanted to book, they were urged to pay the full amount in advance to secure their holiday rental for the desired period. However, when the fraud victims arrived at their holiday destination, they found that the luxury villas were not for rent at all and their owners were ignorant of the holiday rental arrangements.
National Police issued a statement, saying: "The fraudsters set up a high quality website offering luxury holiday rentals in Marbella at very competitive prices. The properties really existed but their rightful owners were unaware that they were being offered on the website."
Given that some of Marbella's most luxurious villas, those in exclusive El Madronal in Benehavis, a 10 minue drive from Marbella centre, or even more exclusive La Zagaleta Country Club estate for example, can fetch enormous weekly rental yields, the fraudsters stood to make an absolute fortune.
The National Police statement explained how it was done: "Potential renters were asked to secure the reservation with a bank transfer and to pay the rest in full four weeks before arrival. But when victims turned up in Marbella to meet the agents to be given the keys, they didn’t appear and their phone and emails went unanswered."
The Victims of Marbella's Holiday Home Lettings Scam
When the first of nine foreign victims raised the alarm on 16th July, police began their investigation. "One of the victims was cheated of €55,000 for two luxury villas. When they arrived in Marbella, they found the people at the property had no knowledge of the reservation."
Police believe there may be more victims yet to emerge. The nine already identified were defrauded of 95,000 euros in total.
The police statement added: "According to bank transfer records the organization received in excess of €500,000 from other victims who have not yet come forward or who have reported the crime abroad."
You get what you pay for in Life!
Not all that glitters is gold, so goes the old adage. By the same token, not all that looks a bargain, turns out to be one. National Police warned holidaymakers to beware of suspiciously low holiday rental prices.
"To avoid this type of fraud be suspicious of surprisingly low prices and websites that to do not have positive feedback from other users. Be wary if you find it impossible to contact the advertisers in person and be careful of sending money upfront."
The police also advised holidaymakers who book online with private landlords to keep a copy of all documentation relating to the holiday rental and to print off screenshots of the website to have proof, should the website be taken offline after a booking has been made.
It is far better, however, to stick with tried and tested, bona fide travel sites. If you are looking for a bargain, why not wait and make your booking when prices go down in autumn? At the very least, tourists should Google the name of the lettings agents or website owners and see if they come up in any searches.
If nobody has ever done a review on their holiday accommodation services, no press release has ever been written about them and no blog exists either, it is likely that the website is running a scam.
There are plenty of reputable lettings agents based in Marbella; many have more than three decades of experience in Marbella's luxury property market. It cannot hurt to make a few enquiries with well-established, often family-run firms, before parting with any advance fees, especially when the fees are so substantial as they are for luxury holiday homes in Marbella. Better still, if you love holidaying in Marbella, why not invest in your own holiday home instead?