2-20-2023 2:00pm

Rental Scams and How to Recognize and Avoid Them

Anita Johnson-Brown Editor

Real estate—If you’re looking for a house or rental property, be aware of a great property with tempting offers and amenities and be alert for potential fraud on prices that are too good to be true.

According to Zillow rental scams are a common source for identity theft and victims are prey for losing thousands of bucks paying fees to defraud organizations.

Rental scammers are sophisticated criminals, statistics indicate that everyone can fall prey to a rental scam.

Ask yourself these important questions to reveal the red flags detect of potential scams, and suggestions for assuring your rental search is secure and protected.

Is the monthly rent too good to be true?

Watch out for Rental rates that are too low for the area. Affordable apartments in an immaculate location and the rental fees are below what other property owners are charging, there could be an issue. The scam artist usually preys on first-time renters, buyers, and people moving long-distance.

Avoid the “too good to be true” scam, and research rental rates in the area, the size of the unit, and the amenities you want. Ask questions directly to the property manager or landlord about the rent being so low for the area, keep copies, and document all communication between you and the landlord.

Is the property or apartment listing legitimate?

Online rental searches: if you see the same listing under a different name, or property management company, that’s a hint it may be a scam.

If the property you are interested in is listed on major rental listings websites, look for a listing containing the same, the property owner, landlord's name, address, all contact information other pertinent information check out who manages the property.

How are rental payments accepted?

One warning sign is if a property manager or landlord asks you to pay with cash, money order, or pay via wire transfer. these methods are like sending cash with no ability to accurately trace the funds.

Most rental payments and fees are processed through an electronic deposit from your banking account, this payment process has a record of where your money was spent, use a credit card, or a paper check, to make a rental payment online.

If you are requested to provide personal information prior to viewing the property?

Request a tour of the property before making any type of payment, and submitting a rental application, avoid giving personal information, including your social security number, credit card number, and the date you were born. Most scammers do not own actual rentals, see the unit before you purchase or rent it, or request an onsite viewing in person or an online tour. If possible view the unit with a friend or engaging agent. Avoid properties that claim they’re unavailable to show the property.

Phantom properties?

It shows potential renters a property that is not for rent, or doesn’t exist, Scammers use this method to obtain the renter’s security deposit and personal information. Be sure to have a rental walkthrough checklist when viewing a unit.

The experts at Zillow advise scheduling an in-person or virtual meeting with your prospective landlord. If further research on the property is necessary, the local Assessor’s office or County Clerk can provide property records and Verify all names, websites, and phone numbers in the listing. Always Read reviews for any potential, clues, and red flags.

If you think you’ve run across a rental scam, report it to local law enforcement and the FTC.

Written by Anita Johnson-Brown