Avoid Renovation Scams: Tips and Real Cases

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Renovation is an important investment for every household, whether it's moving into a new home or refurbishing an old one, quality and reliability are the primary considerations. However, incidents of deceit by unscrupulous renovation companies are still heard from time to time, and many people inadvertently fall into renovation traps, resulting in financial loss and immense mental stress. This time, Renovation Man has extracted two real cases that occurred in recent months, both of which are quite typical examples of 'misrepresented goods' and 'unfinished renovation' incidents, to remind everyone to be cautious of similar tactics, and also includes tips on how to avoid pitfalls.

Case One: Misrepresented Goods

HK$110,000 Customized Furniture for the Entire Home—All 'Photoshopped'

A female homeowner, during her first home renovation, found a mainland Chinese renovation company online and spent HK$110,000 on custom furniture for her entire home. "HK$110,000 for all the furniture isn't exactly cheap, but it's not overly expensive either," she said, hoping to create her dream home at a lower cost. However, when the furniture arrived, she was so shocked that "her eyes nearly popped out." From the photos she shared, it was evident that the wooden cabinet shelves were covered in scratches and what appeared to be paint stains. The wooden door frames didn't fit properly after installation, with noticeable gaps all around. The cabinets were made entirely of low-quality particleboard, which was not only non-durable but also completely failed to meet the promised design quality.

The Shady Shop Stole Photos to Attract Customers, Delivered Poor Quality, and Still Demanded Payment

The homeowner later discovered that the "case photos" on the renovation company's website were actually stolen from another Hong Kong renovation platform, used to lure customers into placing orders. "They copied everything from others, using photos to attract customers, and then extorted money from them." The actual quality delivered was completely mismatched, even describable as "inferior." Despite the numerous issues, the company still demanded the remaining HK$10,000 payment, leaving the homeowner feeling helpless and furious. She later warned others that while online furniture shopping is convenient, it's crucial to check the background and reviews of the seller to avoid falling into such traps.

Read More:【Renovation Pitfalls】Must-See Common Renovation Traps, Consumer Council Teaches 4 Ways to Avoid Them

Case Two: Unfinished Renovation

Contractor Disappears, Project Left Unfinished, Elderly Couple Loses $90,000 Pension

Unfinished renovation projects happen from time to time, and another renovation scam befell an elderly couple who had planned to use their savings to renovate their public housing unit. Unfortunately, they encountered an unfinished project. The victims mentioned that the contractor was initially introduced by a friend who worked as a laborer at the company, "He thought the boss was quite nice." The total cost of the project was $139,000, and the contract stipulated installment payments. However, after the contractor completed the electrical and plumbing work along with the painting, he demanded the third installment, claiming, "No money to pay the furniture company." But the victims pointed out that two-thirds of the furniture had not yet arrived and explicitly stated that, according to the contract, the final payment would only be made once all the furniture was delivered. The dispute escalated, with the victims stating that if this part of the project was left unfinished, it would mean the entire renovation was incomplete, and they demanded a full refund. Subsequently, the contractor disappeared, leaving the project unfinished.

Rogue Renovation Company is a Repeat Offender, Also Owes Workers' Wages

The victims discovered that the contractor not only owed their friend $20,000 in wages but had also left another project unfinished. The elderly couple lost over $90,000 of their pension savings, leaving them unable to sleep or eat peacefully. The victims lamented, "It was our first time renovating, we had no experience," and "We don't even want to see anyone arrested or the shop closed, we just want the house completed." Although the victims have reported the incident to the police, the police suggested they take the matter to customs. They decided to publicize the incident, hoping to raise public awareness and prevent other families from being scammed.

Read More:[Common Renovation Quotation Traps] Consumer Council Report: 9 Pitfalls to Watch Out For

How to Reduce the Risk of Being Scammed?

The above two cases reveal different tactics of renovation scams, whether it's "not as described" or "unfinished projects," both causing significant losses to the parties involved. To avoid similar situations, the following anti-scam tips are worth considering:

• Choose a reputable company: When selecting a renovation company, check its business registration, business license, and read multiple online reviews. Do not easily trust unknown advertisements or "recommendations from friends and relatives."
• Sign a detailed contract: The contract should include the scope of work, material specifications, payment methods, and completion date, and specify liability for breach of contract to ensure the rights and interests of both parties are protected.
• Stage payments: Do not pay a large sum of money at once; pay in stages according to the progress of the project, and only pay the balance after each stage is accepted.
• Personal acceptance: During the renovation process, you should visit the site multiple times to check whether the project meets the contract agreement, and promptly identify problems and request corrections.
• Avoid being tempted by low prices when buying furniture online: Although online furniture is cheap, the lack of physical reference can easily lead to quality problems. It is recommended to choose a merchant with a physical store and personally check the samples.
• Keep evidence: Keep all contracts, payment receipts, conversation records, and other relevant information. If you find that you have been scammed, report to the police or complain to the relevant department immediately.

Want to prevent renovation nightmares?

Want to avoid renovation nightmares before they even start? A good renovation matching platform can help you by pairing you with reputable renovation companies based on your needs. Additionally, it can act as a third-party monitor, minimizing the chances of running into issues. Register for a free renovation quote, and a renovation consultant will follow up to help you find the best quality renovation company for your needs.

In addition to finding reputable renovation companies through matching platforms, homeowners preparing for renovations can also improve their knowledge about renovations. The flagship renovation anti-scam course offered by the Renovation Academy teaches essential concepts and knowledge that homeowners need to know. It consolidates all the issues homeowners might encounter during renovations, saving you a lot of preparation time, reducing the chances of running into problems, and significantly improving the cost-effectiveness of your renovation.

Learn more about free renovation quotes for different types of homes:

Public Housing | https://decoman-publichousing.com/

Private Housing | https://decoman-privatehousing.com/

New Properties｜https://decoman-newproperties.com/

Tong Lau｜https://decoman-tenement.com/

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The content and images of this article are provided by the columnist Renovation Man.