Property Fraud: Identifying and Avoiding Rental Scams
There is a long list of risks and scams that have persisted in the real estate market for several years, and rental scams are no different. Whether it’s in the form of a fraudulent rental listing or sketchy leases, it’s important for renters to know what to look out for.
If you’re in the process of apartment hunting or plan to in the near future, we can help you avoid wasting time and money on a scam. There are some common strategies and indicators that often appear in rental scams, so let’s break them down and discuss this topic a bit further.
Common Rental Scam Indicators
Pressure for Personal Information/Payment:
A listing contact that is urgently requesting personally identifiable information may be attempting identity theft. This differs from tenant screening, which generally occurs only after a prospective tenant has toured the unit and submitted an application. A reputable service will usually have positive reviews on trusted platforms, comply with data privacy regulations such as the Fair Credit Reporting Act, and provide clear explanations of their processes.
If they are demanding some form of payment prior to visiting the property or before coming to any sort of agreement, this is an immediate red flag and further contact should be avoided.
Unorthodox Payment Methods:
If the listing contact is directing you to a questionable website for payment, requesting that you pay an application fee, or asking for a direct deposit using cash, wire transfer, cryptocurrency, or gift cards, there is likely some degree of suspicious activity. These payment methods are harder to trace and track. Additionally, as mentioned above, being asked for payment or payment details before you’ve even seen the property is a massive scam indicator.
The Property or Listing is Unrealistically Perfect:
Many listings will try to embellish the description or appearance of a property to attract renters, but some cases of exaggeration are done with the intent to deceive. Does the rent seem unusually low for the neighborhood or property listed? Scammers often lure renters with deals that appear too good to be true, emphasizing urgency and claiming the offer will disappear quickly. Take your time in researching the property and see it in person if possible before agreeing to any terms.
Limited Information About the Listing:
One common scam tactic involves listing properties that either don’t exist or aren’t actually available for rent. Typically, scammers begin with a fake listing, but the fraud may also include a showing, either in-person or virtual, of a vacant property. If you can’t trace the listing to a legitimate property management website, office, or government record, proceed with caution. Research is extremely valuable in avoiding scammers.
Anonymous or Fake Landlord Identity:
Can’t find any information about the listing contact? Are you unable to find the individual online or find credible profiles for their name or company? Many scammers will avoid using their legal names so that they can’t be tracked or identified.
Another red flag is the contact’s refusal to meet face-to-face. They claim they’ll send you the keys, but the supposed landlord, property manager, or agent is unavailable to meet with you during the transaction. Whether they’re “out of the country” or dealing with a family emergency, the fabricated story may vary, but renters should proceed with caution, as this is likely a scammer.
How to Avoid Being Scammed in Your Rental Search
- Cross-check the property listing on several platforms to ensure that it’s legitimate.
- Visit the rental property in person, and bring someone along with you if possible.
- Verify the listing contact or agent’s identity using online resources or public records.
- Only use reliable and trustworthy payment methods that are secure or able to be tracked.
- Always do your research, and trust your natural instincts. If it feels suspicious, do some investigating!
Conclusion: Learn to Avoid Rental Scams
Rental scams are unfortunately prevalent throughout rental searches, and being aware of common red flags is essential to protect yourself from falling victim. By staying vigilant, conducting thorough research, and trusting your instincts, you can avoid wasting time and money on fraudulent listings.
Always verify property details, meet the landlord in person, and use secure payment methods. By taking these precautions, you can safeguard yourself and ensure a safer rental search experience.
Need professional assistance with locating a rental property and protecting yourself from fraudulent listings? Oscar Combs Realtor is an experienced, licensed real estate agent in the state of Texas. We can help you find the apartment or rental property of your dreams! Contact us today.
