FRAUDLIFESTYLE & TRAVEL

Rental Scam Red Flags

Rental scams seem to be increasing with the ease of internet access. Don’t let that fool you, though; rental scams have been around for decades! The difference now is the method used to commit fraud. Before, the scam may have been listed in a newspaper classified ad or posted as a flyer with tear-off strips for contact. This illegal and damaging scheme is not new. Currently, the most common rental scams are ones that involve a fake listing for a property which does not exist or is drastically different than reported, and the scammer may demand a deposit before viewing it, ultimately leading to an unavailable landlord, fake agents or high fees.

How can you protect yourself and your money? Keep reading for some invaluable tips.

Scam Tactics and Solutions

SCAM: Unrealistically low rent or security deposit: This tactic is used to lure unsuspecting renters in the hope that they will make a quick decision without conducting research.

SOLUTION: Do your research: If a unit looks too good to be true for the price, it’s a safe bet that it’s a scam. Conduct research like looking into public records of a rental company, cross-referencing the property management company, or doing market research on rental rates of similar units.

SCAM: Pressure to act quickly: Scammers create a false sense of urgency by insisting the property or special rate will be gone if swift action is not taken. This allows them to use your emotions and circumstances against you.

SOLUTION: Slow down: Besides taking your time, be very clear with yourself about what your timeline is. If you have time to find a rental, then avoid paying money until you can verify the legitimacy of the rental. If you have a short timeline, jump into the research as soon as possible and talk to people who have lived there in the past to help verify the legitimacy of the rental.

SCAM: Requests for upfront payments without viewing: Being asked to exchange any kind of money without providing you the opportunity to physically see the space or something similar to the unit you’re interested in renting is a big red flag.

SOLUTION: Keep it moving: Legitimate landlords will allow prospective tenants to see the unit before asking for money. As a landlord myself, I do ask that potential renters complete a background check prior to viewings. I do this because it is respectful to understand that everyone’s time is valuable. If a candidate does not meet our tenant standards, then I would hate to waste both of our time by offering a viewing if we would not rent to them.

SCAM: Lack of proper documentation: Many scammers may not be able to provide an official lease or, if they provide one, it may be incomplete and not clearly outline expectations for the tenant(s) and the landlord. Additionally, scammers may also approve you as a tenant without asking you to fill out appropriate paperwork and only require a deposit.

SOLUTION: Review leases carefully: Keep in mind many landlords use the same information in leases due to paperwork requirements for rental properties, but utilizing common lease clauses can help you better identify a scam. If documentation doesn’t seem to make sense, then it is often better to walk away. The people performing these scams also love to gather personal data from fake documents.

SCAM: Use of untraceable payment methods: Scammers commonly request payment be made with methods that are hard to trace such as gift cards, crypto or wire transfers.

SOLUTION: Use secure payment methods: Opt to pay your fees with more secure payment methods like a credit card or a cashier’s check and avoid untraceable methods like cash.

No matter where you want to live or what type of property you would like to live in, staying vigilant and informed is your best defense against rental scams. Slowing down the process, taking time to think everything through, recognizing common rental fraud tactics, and following safe practices can help prevent you from falling for a rental scam.

Sources

https://consumer.ftc.gov/articles/rental-listing-scams

https://www.zillow.com/learn/how-to-spot-rental-scams/

https://american-apartment-owners-association.org/property-management/collections/15-common-tenant-scams-how-landlords-can-avoid-them/?srsltid=AfmBOooiBZbpAxvJXxS9NlPZohE-bMExtIc1dsbZ6_RQC_YcZxVfVP64