How to Identify and Protect Yourself from Rental Scams

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In This Article:

• Rental Pictures Look Too Good to Be True
• Rental Listing Contains Errors
• You’re Pressured to Lease Right Away
• You’re Asked for Money Upfront
• There’s No Credit Check Involved
• You Can’t Tour the Property
• The Rent Is Very Low

What to Do if You’re a Victim of a Rental Scam

While searching for apartments or other properties, some renters unfortunately fall prey to rental scams. These scams aim to steal renters’ money, and they often succeed. According to FBI statistics, American renters lose tens of millions of dollars annually to rental and real estate scams.

Seven Common Signs of Rental Scams and How to Avoid Them

1. Rental Pictures Look Too Good to Be True

What to watch out for: If an online ad features photos of high-end appliances and luxury amenities with a rent much lower than expected, be suspicious.

How to avoid the scam: Perform a reverse image search to see if the photos appear elsewhere online. Always ask to see the property before signing a lease or putting down a deposit. Confirm that you’ll be renting the same unit or a similar one.

2. Rental Listing Contains Errors

What to watch out for: Look for misspelled words, grammatical mistakes, overuse of capital letters, and strange formatting in rental listings. These could be signs of a scam.

How to avoid the scam: Carefully review rental listings to spot errors that raise red flags. A sloppy ad might indicate a scammer’s work.

3. You’re Pressured to Lease Right Away

What to watch out for: If a landlord is rushing you to sign a lease, proceed with caution. High-pressure sales tactics might be used to persuade you to part with your money.

How to avoid the scam: Don’t cave in to pressure. Take your time to decide whether you want to sign the lease. Review the lease thoroughly to understand all details, including the contract length, rent amount, and landlord’s responsibilities.

4. You’re Asked for Money Upfront

What to watch out for: Be cautious if you’re asked to make a deposit or pay the first month’s rent before touring the property. Some scammers ask for money upfront and then disappear.

How to avoid the scam: Verify that the person who posted the rental listing owns or controls the property by doing online research. Avoid sending money via unusual, hard-to-track payment methods like wire transfers, gift cards, prepaid debit cards, or cryptocurrency.

5. There’s No Credit Check Involved

What to watch out for: Landlords and management companies often perform credit checks to assess an applicant’s payment history. Beware if someone offers to lease a property without a credit check, as they might be a scammer.

How to avoid the scam: Ensure you’re dealing with a reputable landlord or management company by looking for requests for a credit check, income verification, and other typical requirements. Some legitimate landlords might not demand a credit check, but be cautious.

6. You Can’t Tour the Property

What to watch out for: If someone offers an excuse for not letting you tour a property before signing a lease, be wary. They might claim to be out of the country but still want you to pay a deposit or first month’s rent.

How to avoid the scam: Always tour a rental property before signing a lease and handing over money. If a landlord makes it difficult, consider moving on to another rental.

7. The Rent Is Very Low

What to watch out for: An unusually low rent might be too good to be true. Scammers might lure you in with a low rate and push you to pay a deposit quickly.

How to avoid the scam: Research typical rents in your area. If a rate seems too good to be true, it might be a scam.

What to Do if You’re a Victim of a Rental Scam

If you suspect you’ve fallen victim to a rental scam:

• Contact your bank immediately to see if you can cancel transactions related to the scam.
• File a complaint with local police, the FBI, or the Federal Trade Commission (FTC).
• If you provided sensitive personal or financial information, set up a fraud alert on your credit reports to get notified if someone tries to apply for credit under your name.

The Bottom Line

Scammers operate in various sectors, including the rental industry. If you’re in the market for a rental property, stay alert and watch for warning signs of rental scams. Being cautious during the rental process can help you avoid headaches and protect your money.

For any mortgage service needs, call O1ne Mortgage at 213-732-3074. We’re here to help you with all your mortgage needs!

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