The internet is a powerful tool with many benefits, like easy access to information, connecting with far-off friends and family, and a plethora of entertaining content. But it has also opened the door to different types of crime, like rental scams. These scams take advantage of renters seeking new housing online, leading to not just lost money but also significant stress. This guide will equip you with the knowledge and tools necessary to navigate the virtual rental landscape safely.
When you’re sifting through listings during your apartment search, you may be tempted to go for the post with the most—everything you’ve ever wanted in a rental (dream location, every amenity imaginable, etc.) for hundreds of dollars under your budget. But unfortunately, in that scenario, you would likely be falling for a rental scam. Rental scams are fraudulent activities conducted by people who pretend to be landlords, property managers, or rental agents. Their goal is to deceive people looking for properties for rent. These scams often take place on the internet, allowing the scammers to use their anonymity and extensive audience to prey on renters who are unaware of their schemes.
According to the Federal Trade Commission (FTC), there are two major kinds of rental scams:
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Stolen Ads: Some scammers steal real rental listings outright and switch the real contact information with their own phone number or email address. To combat this kind of scam, search the address online to see if the listing is posted on other sites. Verify that the contact info is the same as the one you’ve been checking out.
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Fake Ads: Some scammers completely fabricate listings for units that either aren’t available or don’t exist altogether. To make sure your dream listing isn’t fake, you should reverse search the images in the ad by right-clicking on the image and then selecting “search the web for the image.” It’s the quickest way to find out if the images are actually stock photos or belong to a real, different listing (see number one above).
Luckily for renters, scams have plenty of tells. Rental scams are easy to spot once you know what you’re looking for. And once you know what you’re looking for, you can avoid losing money, time, patience, and your sanity.
How to Avoid Rental Scams
Protecting yourself from rental scams requires vigilance and a healthy dose of skepticism. Here are some essential tips to help you avoid falling victim to a rental scam:
1. Conduct Thorough Research:
Verify the Property: Before contacting anyone about a rental listing, cross-reference the listing across multiple reputable websites and platforms. Confirm that the property exists and is actually located in a residential area. See if there are any other online listings for the property in question – does the contact information match up on all of the listings? If the property appears on only one site or lacks consistent information, it could be a red flag.
Check Ownership: Research the property's ownership records through public databases or county assessor's offices to ensure that the person claiming to be the landlord or property manager is legitimate.
2. Insist on In-Person Visits:
Schedule a Viewing: Always insist on viewing the property in person before committing to anything. Beware of excuses from the supposed landlord or agent for why they cannot show you the property.
Trust Your Instincts: Pay attention to your gut feeling during property viewings. If something feels off or inconsistent with the listing, it's better to walk away.
3. Verify the Legitimacy of the Landlord or Agent:
Ask for Identification: Request to see the landlord or agent's identification and confirm their identity matches the information provided in the listing and any communication.
Contact the Property Management Company: If dealing with a property management company, verify their credentials and contact information independently to ensure they are legitimate.
4. Use Secure Payment Methods:
Avoid Cash Transactions: Refrain from making cash payments or wiring money for deposits, rent, or application fees. Opt for secure payment methods such as checks, credit cards, or payment platforms that offer buyer protection.
Review Lease Agreements Carefully: Thoroughly review any lease agreements before signing, and ensure they include all relevant terms and conditions. Seek legal advice if necessary to understand your rights and obligations.
5. Never Send Money Before Seeing the Property:
Always View the Property First: Never send money or provide financial information before physically visiting the property. Scammers often use excuses such as being out of town or unable to arrange a viewing as a tactic to convince you to send money without seeing the property. This is especially true if the landlord insists on dealing in cash or wire transfer (the surest sign of a scam, according to the FTC). If you can’t visit a rental in person yourself, send someone you trust to visit it for you to make sure it checks out. Ask the person you trust to video chat with you while they’re touring the rental so you can see what the property looks like.
6. Be Suspicious of Below-Market Rent Prices:
Exercise Caution with Unrealistically Low Prices: Be suspicious of rental listings with prices significantly below market value. If it seems too good to be true, it’s probably a scam. Are similar listings (in the same area, with the same features) charging roughly the same amount in rent? If you aren’t already, become extremely familiar with the city or neighborhood where you’re searching for an apartment so you know the average rent prices in the area.
7. Be Wary of Pushy Landlords or Agents:
Watch for High-Pressure Tactics: Beware of landlords or agents who employ high-pressure tactics to rush you into signing a lease or making a payment. Scammers often create a sense of urgency to prevent you from conducting proper due diligence.
You know you’re dealing with a pushy landlord if:
- They give you an urgent deadline to pay a deposit
- They don’t want to run a background or credit check
- They are overeager to collect payment from you
Take Your Time: A legitimate landlord or property manager will understand the importance of making an informed decision and will not pressure you to sign a lease or make payments on the spot.
Remember to stay vigilant in your search for your next rental and look out for the above warning signs of a scam. If you do come across a rental scam, be sure to report it to the listing site you found it on, your local law enforcement agency, and/or the FTC. With caution and diligence, you can find the perfect rental property without falling prey to deceptive schemes.
