Seeking a landlord or property manager? Beware of scammers who ask you to sign a lease via email without checking your financial stability. They ease out the one-time payment from you only to disappear later.
Rental searches have now moved to the internet, making room for artists ready to take advantage of customers. Add fake listings to the rental brokers who are about to pull bait-and-switch operations with lower quality rentals or higher rent, and it becomes hard to tell the real ones from the fake.
The Federal Trade Commission says rental listing scams is a common danger on their website and has instructed individuals to report scams to the site the listing was posted on, the local law enforcement, and the FTC.
Red Flags to identify rental scams:
- Listing photos with MLS watermarks.
- Vague listing details.
- Avoid showing the property.
- Deals without background info.
- Out of the country.
- Try to make you sign before seeing anything.
- Asking rent doesn’t add up.
- Ask you to wire money.
Listing photos with MLS watermarks.
Rental listing photos with watermarks is a problem. At times, scammers put photos pulled from the local multiple listing service. An MLS watermark indicates that the rental does not have original photos because they are not associated with the property.
The FTC has also warned that scammers also copy rental advertisements as it is and change the email address or contact number associated with the listing and post it on a different site.
Vague listing details.
If the basic details of the listing seem amiss and make no sense to you, it might be because the person has never been to the property. For example, a listing with no details on utilities or attractions nearby indicates that the lister has no idea about the area or does not expect you to be familiar with it.
It is common for brokers to avoid adding the exact address of the apartment when pulling a bait-and-switch.
Avoids showing the property.
If the broker or person who posted the listing online is hesitant about showing you the property, it shows that they are not associated with the space. Scammers also sometimes pretend to be a renter looking for a sublease or lease with a small-time landlord to get your financial information. If they are not eager to learn more about the property or look at it before signing, it is likely a scam.
Deals without background info.
The FTC warns about paying any security deposit or first month’s rent before signing the lease and meeting the landlord in person. Never pay for anything other than the application fee before confirming the space is available; the individual is associated with the property, and the contract legally makes you the tenant.
Ask for the photo ID copy of the person before transferring thousands of dollars to them.
“Out of the country.”
One way to avoid meeting you is by saying that they are out of the country. FTC states on its website that scammers play smart to make it all look real by involving a ‘lawyer’ or an agent working on their behalf. They might go as far as sending you fake keys in the mail.
Try to make you sign before seeing anything.
Avoid brokers who try to trick you into paying a fee for an apartment they advertised. Do not sign anything before looking at the promised place. They will make you sign a contract that makes you eligible to pay a finder’s fee.
Asking rent that doesn’t add up.
Con artists hook many victims by promising rent that seems too good to be true. The prices quoted are so reasonable because the property does not exist. If you notice the rental to have a lesser price than the others in the same neighborhood, proceed with caution. It means that chances are that it is a fake listing or a fake rental rate to lure people in.
Ask you to wire money.
A request to wire the security deposit or first month’s rent is a clear sign of a scam. After collecting the money, they are very likely to just disappear. Mail a check instead or hand it into the person, so you have a name to sue them.
Avoid a rental scam by,
- Researching the landlord. Find out if the person is associated with the area or has been called out by news outlets, local law enforcement, or victims.
- Verifying the address to avoid bait-and-switch from an agent selling you another apartment. Search the listed address online to check if any other real estate agent lists the listed property or if the rental shows different contact information somewhere else.
- Checking street views of the property. When viewing the property online, view it on the street view option to see if the property matches the exterior photos on the listing.
- Visiting and taking a tour of the rental. By doing this, you ensure better upkeep and notice anything that may put you off.
- Meeting in person. Scammers are often unwilling to meet in person, and if you end up meeting for an apartment tour, you can get proof of access and knowledge of the property.
What to do if you have been scammed?
A rental scam that cheated you out of your money should be reported immediately. If you have been tricked into paying for a scam, you can get your money back by contacting Cyber Intelligence Desk. The experts here are adept at recovery and will ensure you get back what is rightfully yours.