In the wake of the recent wildfires around Los Angeles, our entire team at Rently has been deeply moved by the devastation impacting our neighbors, loved ones, and the broader community. As a company headquartered in Camarillo, this tragedy hits close to home, and our hearts go out to everyone who has been affected by these fires. Rental scams have steadily increased in recent years, and unfortunately, criminals eager to exploit tragedy have already started to prey on displaced residents desperately searching for housing. Rently is fully committed to preventing and protecting against rental fraud and scams, and doing everything possible to help renters know what to look for. Below are tips for how Los Angeles renters can protect themselves from rental scams. Tips include: spotting red flags in rental listings, protecting yourself in your search, and actions to take if you suspect you’ve been the victim of a scam.
How Do Rental Scams Typically Happen?
Rental scams often start with fraudsters creating fake listings that look and sound authentic. In many cases, scammers copy real listings from reputable sites, including the property photos and descriptions, but change the contact information to their own. Others might create listings for properties that don’t exist at all. Then, they post these fake ads on platforms with less oversight, such as Facebook Marketplace or Craigslist, with enticingly low prices or quick availability.
What follows is a series of high-pressure tactics, like requiring upfront payments for deposits or fees, to force victims into quick decisions. These schemes rely on urgency and deception, leaving renters without the home they thought they secured and often out hundreds or even thousands of dollars.
Our recent 2024 Rently Survey: Rental Scams and Fraud Report found that 88% of scam victims came across their fraudulent listing on Facebook, lured by the perfect package: ideal location, below-market price, and fast availability. Sixty-two percent of scam victims lost more than $500 from the scam, with nearly half losing more than $1,000.
What Are Common Rental Scam Red Flags?
Scammers will try to take advantage of your urgency and emotional vulnerability, especially during a crisis.
Keep an eye out for the following red flags:
- Requests for Upfront Payments via Untraceable Methods: Scammers may ask for security deposits or first month’s rent via wire transfers, gift cards, or cryptocurrency. These payment methods are untraceable, making it almost impossible to recover your money.
- Too-Good-to-Be-True Deals: Listings that advertise well below market rates or unusually flexible terms should raise a red flag. Always compare the price to similar rentals in the area.
- Pressure to Act Quickly: Scammers often create urgency by claiming that the property will go to someone else unless you pay immediately, without providing adequate time to verify the listing.
- Suspicious Contact Information: If the contact details in the ad don’t match the property management company’s official website, or if the “landlord” refuses to provide identification, proceed with caution.
- Sight-Unseen Rentals: Watch out for landlords who refuse to show you the property or claim they’re out of the country but can arrange for you to move in after payment.
How Can Los Angeles Renters Protect Themselves from Rental Scams?
Knowing how scammers operate is just the start. To keep yourself safe during your search, make sure you take the following proactive steps with any opportunity you explore.
- Verify the Property and Landlord: Search for the property’s address online to confirm it’s legitimately for rent and listed by a credible source. Contact the management company directly, using information from their official website, to confirm the listing.
- Visit the Property in Person: If possible, tour the property yourself or have a trusted person inspect it on your behalf. If a landlord insists on payment before showing the property, it’s likely a scam.
- Guard Your Sensitive Personal Information: Never provide personal details like your Social Security number, bank account information, or credit card numbers unless you’re certain the landlord or rental agency is legitimate. Scammers can use this information to commit identity theft.
- Use Secure Payment Methods: Pay only through methods that provide a paper trail, such as checks or credit cards. Avoid cash, wire transfers, or apps like Venmo, Zelle, and CashApp when dealing with unfamiliar landlords.
- Research the Rental Platform: Check reviews and complaints about the website where the listing was posted. Some platforms, like Facebook and Craigslist, are frequent targets for scammers due to their lack of robust verification measures.
What Should I Do if I Think I’m Being Scammed?
If you suspect that you’ve encountered or fallen victim to a rental scam, take immediate action:
- Stop All Communication Immediately: End contact with the suspected scammer to avoid further losses or compromising personal information.
- Report the Scam: Notify your local police department and file a report with the Federal Trade Commission (FTC) at ReportFraud.ftc.gov. Also, contact the platform where the ad was posted to ensure they remove it.
- Notify Your Bank: If you’ve already made a payment, contact your bank or credit card company to dispute the charges and attempt to recover your funds.
- Protect Your Identity: If you’ve shared sensitive personal information, such as your Social Security number or bank account details, monitor your accounts closely for unauthorized activity. Consider placing a fraud alert on your credit report or freezing your credit to prevent identity theft.
More Resources
- As a Renter, How Can I Protect Myself From Scams?
- Rental Fraudsters Prey on Desperation in Tight Housing Market
- How to Combat Rental Fraud & Optimize Property Tour Security
- Scam Prevention 101
- Rently, Powering the Most Secure Self-Guided Touring Platform
- How Rently Makes Self-Guided Tours Safe for Renters