Rental Scams: What to Spot and What to Do

With COVID-19 fading into the background, scammers see an opportunity to prey upon unsuspecting people. Rental scams have been on the rise in the past few years due to COVID related confusion that obscures financial forethought leading people to become desperate in the face of uncertainty. In 2018, 5.2 Million American renters have lost money due to a rental scam; additionally, in 2020, the rate of which of these scams have claimed victims has risen up 30% or so. It is important to be aware of these types of scams and how to spot them.

What to Look For

The problem has become so prevalent that even the FTC has been addressing the issue. The majority of these kinds of scams are posted on rental websites like Opendoor, Craigslist, or Zillow.

The scammer will pretend to be the landlord, owner, or agent of the property. Usually the property itself may not even be involved and fake pictures may be posted to make the scam seem legit. Other times, the scammer may hijack or spoof an ad on one of these websites, but change the contact information. Then the scammer will try to stay in contact with the victim until money is exchanged. Here are a few things the scammer might do and signs to watch out for:

• The scammer tells you to wire Money wiring is the same as exchanging cash, so there’s no way to get it back once it is sent. Most landlords would accept a form of credit as payment.
• The scammer will ask for money before signing any contracts, lease, or papers. Even worse, they may ask for money before seeing the property. Make sure not to pay any security deposit or “fees” before signing anything.
• Don’t sign anything until you see the property itself. If you are unable to visit the apartment or property, then never sign anything.
• If you’re looking to rent a house, make sure to talk to the owner of the house and verify the property. If the person on the other end is acting as an “agent” and can’t get any information about the owner, then it’s most likely a scam.
• Try to look for multiple listings for the same property. The sure sign of a scam is that the ad is duplicated between different websites and the contact information is all different.

What to Do

When you come across a potential scam, it’s important to spend the extra time to investigate the ad listing or rental property. A little five minute investigation can save you hundreds to thousands of dollars, so it doesn’t hurt to investigate!

• Make sure to keep the ideas mentioned above in mind when looking through listings.
• Always ask for any lease, contract, or rental agreement in writing, which should include fees, rent, and maintenance.
• Make sure to search the owner, agent, or property manager of the rental. A legitimate rental property will often have large companies managing the property itself. Even then, smaller landlords will have some kind reputation, just ask your potential future neighbors.
• Not only can duplicate listings be for the same property on different websites, they may even appear in listings for nearby cities and towns as well. Most of the time, scammers will not change the photos and contact information for the rental between locations. It’s easy to search for contract information and most modern search engines allow uploading photos to see if there are any duplicate listings.

It all comes down to taking the time to investigate a listing or rental before exchanging any form of money. A little bit of time and research will save you money in the long run by avoiding these rental scams. If you are a victim of a rental scam, you can submit a complaint to the FBI or your local authorities.  

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