Last Updated on 11/12/2024 by Rany Burstein
Every year, thousands of Americans fall victim to rental scams, losing millions of dollars to fraudsters. Joseph R. Bonavolonta, Special Agent at the FBI Boston Division, warns,
“Scammers are cashing in on renters who need to act quickly for fear of missing out, and it’s costing consumers thousands of dollars, and in some cases, leaving them stranded.”
But here’s the good news: avoiding these scams is easier than you think. By following a few simple tips before signing a new lease, you can protect yourself from becoming another statistic.
Here are some common rental scams and how to dodge them:
Common Types of Rental Scams
Fake Listings: This is the classic bait-and-switch. Scammers create fake ads with enticing photos and unrealistically low rent to lure in victims. Once you express interest, they either ghost you or try to get you to pay upfront without ever showing you the property.
Hijacked Ads: This happens when scammers take real listings and modify them slightly, often adjusting the price to make it look like an irresistible deal. They post these altered ads on various websites, hoping to reel in renters.
Phantom Rentals: Here’s where things get truly deceptive. Scammers will advertise properties that don’t even exist or aren’t for rent. They’ll often ask for deposits or fees to hold the “apartment” before you can see it. Spoiler alert: you won’t ever get that money back.
How to Avoid Rental Scams
1. Too Good to Be True
Let’s face it – who doesn’t want a sweet deal on rent? But if you find an apartment with rent significantly lower than the market average, it should raise some red flags. Do your homework: compare prices in the area and ask the landlord for an explanation of the low rent. A legitimate landlord should have a plausible answer.
Additionally, if a landlord is overly eager to hand over the rental without any credit checks or security deposits, it could also be a scam. Remember, if it sounds too good to be true, it probably is.
2. Always Tour the Property
Scammers often claim they’re out of town and can’t show you the property. Cue the alarm bells!
Jonas Bordo, CEO of Dwellsy, advises having a close friend or relative check out the place before you sign the lease. People stuck in long-distance apartment searches are more likely to fall into a scam. So, even if you don’t have anyone in the area, it’s worth making the trip yourself to see the neighborhood in person.
If you absolutely can’t arrange an in-person visit, then opt for a live virtual tour on Facetime or WhatsApp as a last resort.
3. Beware of Shady Payment Requests
If a landlord asks for a small deposit to hold the place or an agent requires a fee to show you around, it’s a major red flag. One of the biggest warning signs in rental scams is being asked to wire money or use other untraceable methods before you’ve received and signed the lease. Steer clear of Money Orders, Western Union, and MoneyGram. Digital payments like CashApp, and even Zelle or Venmo can still leave you exposed. Pay particular attention to whether the recipient matches the advertised renter. And for the love of all that’s good, avoid cash payments!
Always insist on using traceable payment methods that offer some consumer protection such as credit cards, PayPal (opt-in for “paying for goods and services” and not “sending money to friends”), or good old cashier’s checks. Using traceable payment methods not only provides a record of the transaction but also adds an extra layer of security. While no method is entirely foolproof, having a record of payment is invaluable if you need to involve the authorities and provide proof.
Lastly, the FBI advises against making payments to foreign accounts. If a landlord claims to be out of the country and requests payment in a foreign account, skip it.
4. Verify, Verify, and Verify
We can’t stress this enough: verify, verify, and verify.
Yes, the fast-paced rental market can be scary. But don’t let that fear push you into a hasty decision. Take your time verifying every detail of the listing to avoid getting scammed.
One Redditor’s experience serves as a stark reminder of the risks involved in hasty rental decisions. Despite encountering plenty of red flags, their decision to rush into the lease cost them thousands of dollars and left them without a place to live.
Here are some things to check before signing a lease:
Proof of Residence
Double-check every detail of the listing to avoid rental scams. Start by confirming the landlord’s identity, the apartment’s location and address, and the photos. You can also ask for a recent utility bill that includes the advertised address.
To verify the address and location of the property, use Google Maps and other listing websites. Also, search for the property online and ensure the rental company’s name is consistent across all ads.
Cross-reference images online to ensure they’re not duplicates from other listings. And if the apartment pictures seem too stocky, RUN.
Phone Numbers
A savvy Redditor once spotted a scam because the supposed lawyer’s phone number was suspiciously similar to the landlord’s. Always double-check phone numbers. Consistency is key – ensure the contact information matches all listings and platforms. Use a reverse phone lookup to ensure the number is real, and not some fake Voice-Over-IP number.
Verify the Identity
To confirm the identity of the landlord, sublessor, or would-be roommate, ask for a government-issued ID. This will also help you identify them when meeting in person. Additionally, ask for references from previous tenants. This can provide insight into their credibility.
Do your due diligence by researching them on platforms like Reddit, Twitter, or LinkedIn. Facebook stalk them – well, not stalk, but ensure they have an active social media profile that matches their ID. You can even ask to connect with them socially and make sure to exchange a message with them on Instagram, Facebook, or LinkedIn to ensure they are actually the owners of those accounts.
Scammers often can’t provide proof of residence like a rent bill, lease, utility bill, or government ID. But even if provided, still be wary as they can sometimes build more complex scam schemes and acquire ID documents from a prior victim and then repurpose them.
Taking these steps helps ensure you’re dealing with a legitimate landlord and not a scammer. Verification is your best defense against rental scams.
Rental Lease
If you’ve moved on to the final stage – signing the lease – make sure you have everything in order. Always sign a written lease; oral leases usually don’t hold up in most city courts.
If you are subletting, ensure the tenant is allowed to sublease. Keep a copy of the rental lease with you, and make sure all clauses are as discussed and consistent throughout. For a comprehensive list of what to look for before signing, check out this ultimate guide on rental leases.
5. Watch Out for Poor Grammar
It might seem trivial, but a listing riddled with bad grammar and typos can be a significant red flag. Legitimate landlords typically proofread their ads, while scams often contain numerous mistakes. If the listing looks like it was thrown together in a hurry, tread cautiously.
With the advancement of AI, it’s easier for scammers to form an attractive and grammatically correct listing. Match the style of grammar in the listing, to that of written communication of the would-be landlord, roommate, or subletter.
Keeping Your Rental Search Scam-Free
Alright, here’s the scoop: rental scams are getting sneakier by the day. The good news? They’re about as obvious as a neon sign in a dark alley, so you can still spot them a mile away.
On Diggz, we’ve upped the level of security by adding ID and real phone number verification, and vetting via users’ social media profiles (look out for the verification badges on each listing). These verifications work in tandem with our internal security system that’s always on the lookout to prevent scammers from joining. This means you can apartment hunt with confidence, knowing that our listings are well-curated and trustworthy. If you do encounter any shady content, don’t hesitate to report it.
For a safer and smarter roommate-hunting experience, head over to Diggz. Happy hunting, and stay safe!
