The rental scam is a form of property scamming becoming more prevalent in today’s digital age, with con artists taking advantage of the increased demand for rental properties.
They use fraudulent listings, fake real estate agents, and stolen photos to lure unsuspecting prospective tenants or renters into paying money, only to disappear with the money. So it’s only natural that you want to learn how to avoid a rental scam if you’re planning to move.
But what is actually a rental scam? A rental scam is a fraudulent scheme in which a person falsely claims to be a landlord and tricks someone into paying a deposit or rent for a non-existent or misrepresented property.
So, to avoid falling victim to a rental scam, it’s crucial to do your research on renting tips, be vigilant, and stay informed. You have to do your due diligence to check if the rental property is legit. So how can you avoid rental scams? We will cover the most common tactics scammers use, how to identify them, and ways to be safe.
Some common signs of rental scams
While rental scams are increasing, below are some common signs that will help you detect fake rental listings.
They ask for security deposit or rent before signing a lease
One of the most common signs of a rental scam is when a scammer requests a security deposit or payment before they sign a lease agreement.
Legitimate landlords or property managers will typically not ask for payment before you’ve had the chance to tour the property and sign a lease agreement. This is why it’s vital to know your rights as a renter before beginning the rental process.
If someone is pressuring you to pay upfront before you’ve had the chance to see the property in person or sign a lease, this could be a sign of a scam. This is one of the disadvantages to renting through a private landlord. The price of rent may be more affordable but you run the risk of getting scammed.
What you should do: If you are faced with this situation, it’s essential to take a step back and be cautious. Do some research on the landlord or property management company, and try to verify their identity. Never be in a hurry!
Requesting personal information before seeing the rental property
Asking for personal information before you view the home is among the warning signs of rental scams. Some common personal information that scammers may request includes your social security number, bank account details, or a copy of your driver’s licence.
Con artists may use this information for identity theft, to steal money, or to run background checks.
How to handle the situation: Before sharing any personal information, make sure you’ve verified the identity of the landlord or property manager and that the listing is legitimate. It is critical to be cautious and keep every personal information to yourself.
Fake listings
Fake listings are a common tactic used by rental scammers to trick unsuspecting renters. They create a fake rental listing using stolen photos and information from real listings, making it look like an original deal. Some will create fake websites and email addresses to make the listing appear even more convincing.
What you should do: Be cautious of listings that use stock photos or generic descriptions, as well as listings with unusually low rent for the area.
Do your research or use Google maps to know if the listing address is real. Additionally, scammers may avoid in-person communication or tours of the property. Contact the local authorities or a trusted rental agency for assistance if in doubt.
No in-person communication
“No communication in person” is a common tactic used by rental scammers to avoid detection. They may communicate only through email or over the phone and avoid in-person communication or tours of the property.
This can be a red flag. The real property owner usually prefers to meet potential renters in person and show them the property.
A fraudulent listing could be indicated by a landlord or property manager’s refusal to allow viewing of the rental property. They may be trying to hide something.
What you should do: Be cautious and consider alternative options. To avoid falling victim to a rental scam, always insist on seeing the property in person.
Tips for landlords and tenants to evade rental scams
- Verify the landlord’s identity and the legitimacy of the rental property before sending any money.
- Don’t pay rent or security deposits with untraceable methods such as wire transfers or prepaid credit cards.
- Check if the rent amount is in line with similar properties nearby.
- Visit the house or have a trusted friend visit it before signing a lease.
- Use a reputable online listing platform or real estate agency.
- Read the lease carefully, and don’t sign it if it seems unusual or unreasonable.
- Trust your instincts, and don’t rush.
Conclusion: how to avoid a rental scam
Rental scams are becoming increasingly prevalent in the rental market. Therefore, it’s crucial to protect yourself from these rental scams. If you suspect you’ve been scammed, immediately report the incident to the appropriate authorities, including local law enforcement and the Federal Trade Commission.By following these guidelines, you can find a safe and secure rental property that meets your needs without the risk of losing your hard-earned money to a rental scam.
