Did you know that 5.2 million people in the US have fallen for a rental scam?! They are more prevalent than you think. As a Realtor, I’ve had instances where my listings were used in scamming others and so I always urge renters to be very weary during their search for a home to rent. Some rental scams are easier to spot than others, but there are a few very common things to look out for and ways you can protect yourself from falling victim. Read on to find out!
4 Common Rental Scams
If you’ve ever searched for a rental property online, chances are you have encountered a rental scam listing at one point. In fact, 43.1% of renters reported that they encountered a rental scam listing before. Unfortunately, there are tons of rental scams out there these days and below is a list of some of the most common scams to look out for.- Taking an existing listing and altering the contact information – This has happened on a number of my listings. One time a few years ago, someone reached out to me and sent me screenshots of a lengthy conversation they had with the “owner”. The “owner” told them they’re unable to meet with them face to face because he lives out of state and requested all of the money to be transferred directly to his bank account. They also wouldn’t allow any phone calls.This is a very common rental scam because the property is already vacant.
- Catfishing – that’s right, catfishing exists in real estate too! There are rental scams out there where advertisers use the information of one property to lure you in to renting it but in reality it is a different home entirely.
- Not including all of the listed amenities or features and still charging you a premium rent price.
- A tenant “renting” out the property– There have even been cases where a tenant rented a home and then toured potential renters around, collecting their money and then skipping town.
How To Spot A Rental Scam
I just listed a rental last week for my clients and after sharing it on social media I received numerous messages from people asking if it was a scam. And although this particular home is not a scam, I am glad people are being careful of what they see online! There are a number of common patterns found in rental scams. Familiarize yourself with these and stay alert next time you scour Zillow!- Lower rent price than market value– if something is too good to be true, it most likely is. Scammers like to lure people in by offering them unbelievable prices so be wary if you see this.
- No access to the property until a lease is signed– If the “owners” don’t allow you to see the property until you’ve signed a lease or paid some fee (sometimes they even ask you to pay the security deposit) then this is most likely a scam! You should always request an in-person showing before renting a home! If you’re out-of-state I highly encourage you to go through a reputable property management company or hire a real estate agent.
- Application fee is alarmingly high– usually a background check and credit check costs less than $100. If you see an application fee that charges you much higher than this, ask them why the cost is so high. Chances are they’re preying on applicants by collecting their money and then “denying” them.
- Bad spelling and grammar – if the listing has lots of spelling or grammar issues it might be a scam.
- Questionable email address – if you’re discussing the listing and the email address doesn’t seem professional then be suspicious. Some owners do have unusual email addresses, but this could be a useful clue. I once had someone lie to me about the spelling of their name, and I noticed their real name in the email and it turned out they had been in jail before for fraud! Still can’t believe they thought I wouldn’t find out…
- Pushy about a verbal lease – never agree to a verbal lease! Your rights as a tenant are clearly defined in a lease so it’s very important to have one. If someone is encouraging you to have a verbal lease, it most likely is a scam.
- Setting quick deadlines and urgent sales tactics to encourage you to sign faster– legitimate landlords most likely won’t be using scare tactics in order to get you to sign the lease. They want to find a good tenant who will want to stick to the lease.
- The listing photos have a watermark– This could mean the scammer stole the photos from a legitimate listing.
- The “owner” is eager to sign the lease with you without running a background or credit check first. – Most landlords will want to find reputable tenants and ensure that their background and credit checks come back clean. Even though this might be enticing, it most likely is a rental scam.
How To Prevent Being Scammed
Now that you know how to spot a rental scam, how can you do further due diligence in order to confirm whether or not it actually is one? Here is a list of ways you can do further research on the rental listing!- Google the address! If you see other listings for the address with different companies or varying information then be alert.
- Go to your local tax records online and look up the property owners name. Compare it to the name of the “owner” you’re speaking with.
- Ask to meet at the property to see it (bring a friend!). If they can’t let you into the home then it is a scam.
- If a real estate company is listing it, google that company and call the number from their website rather than the rental ad. Confirm with the company that it is a legitimate listing.
- Talk to the neighbors (or current tenants). They might know something about the property.
- Look up the property address on google streetview – does it look like the photos that were listed?
- Don’t submit your application fee or deposits in cash – this makes it harder to refund if you end up being in a rental scam.
- Use a real estate agent– I might be being a bit biased here, but hiring a Realtor to help you find a rental can help you avoid a lot of scams. Real estate agents have access to the Multiple Listing Service which has hundreds of legitimate private owner listings (number varies depending on your market).
Who To Contact About Rental Scams
Now that you’ve singled out a rental scam, here is how you can help other future victims.- Contact your local law enforcement so they are aware, share any phone numbers or emails you may have gotten from the scammer.
- File a complaint with the FTC.
- If the home is actually listed, contact the actual real estate agent representing the home and notify them.
- Contact the website of the fake listing so they are aware and can take it down.
- Report the listing as spam if you are on social media.