As technology grows more advanced and more communication happens online, rental scammers have more opportunities to take advantage of unsuspecting renters. It’s more important than ever to know what to watch out for when searching for a place to live.
In this blog, we’ll go over common types of rental scams, discuss real-life examples, and share tips for protecting yourself against scammers.
Common Rental Scams
Even though rental scams are constantly evolving with new technology, they usually fall into one or more of a few common categories.
- Social Engineering: Scammers pose as landlords and post fake listings online in an attempt to collect rent money.
- Stolen Keys: Scammers will ask you to either keep the key for yourself in exchange for an immediate money transfer, or they will request you to leave the key in a mailbox, bush, or nearby object.
- Rental Applications: Scammers will send fake rental applications via email or text message, often with an application fee.
- Money Transfers: Scammers will use urgency tactics to pressure renters into paying upfront.
Real Examples from Recently Scammed Renters
Example 1:
“I saw the post on Facebook and sent the person a message. They told me they were a private renter and that the property is listed for $710 a month. He immediately started to ask me for an application fee. That is when I decided to google the property address. When I googled it, the Zillow listing came up first. I scrolled down and saw Main Street Renewal as the property management company with a rent price of $1,335. I asked the private owner what management company they use for this property and they said they used MSR to manage it but it became costly so he and his wife decided to manage it on their own and list it on Craigslist. I found the property on Facebook, not craigslist. The scammer had a different rent price and they were mixing up their information. That is when I knew this was a fraud and I stopped communicating.”
Red flags:
- Monthly rent price varies across different platforms
- Requesting money before doing any verification step
- Claims that professional management company no longer manages their properties
- Mixing up listing details
Example 2:
“Someone posted the apartment online claiming it was theirs. They had me use their phone number to create the account but I completed the ID/selfie verification and my banking information was used for the tour credits. They did ask me to Zelle them $800 rent money before filling out a legal rental application which I did. The conversation kept getting more and more weird before I realized that this was a scam. I searched the property and realized that the listing price was higher across other platforms. Unfortunately I did not realize this was a scam until after I Zelled the scammer.”
Red flags:
- Scammer used their phone number but asked the prospect to complete the ID/selfie verification to hide their identity
- Scammer asked for rent money before filling out the application
- Unusual conversation that did not make sense
- Monthly rent price varies across different platforms
Tips for Protecting Yourself from Rental Scams
So, how do you protect yourself? Avoiding scams may seem like common sense, but it’s easy to get duped when the pressure is high. Thankfully, there are specific warning signs you can look out for.
- Research the listing: Verify the property’s details. You want to look for inconsistencies in photos, pricing, descriptions and contact information across multiple different platforms, both online and in real life.
- Verify ownership: If the person you are speaking with claims to be the owner of the property, you can check public records or local property tax websites to confirm they own the property. If the person you are speaking with claims to work for a professional property management company, research the company and their employee history. Pro tip: If you see the property listed by a professional management company, but the person you are speaking to says they own the property and fired the company, it’s likely a scammer.
- Too good to be true deals: If the rent price listed is below the average rent price for all other listings in your area, then it may be too good to be true! Search for the property on other sites to verify if the price listed matches.
- Avoid upfront payments: Be cautious of scammers who ask you to deposit large sums of cash, wire money, or use third parties such as Zelle or Venmo. Landlords will require you to go through a verification process and a legal rental agreement prior to collecting payment.
- Use trusted platforms: Conduct your property search on reputable websites with strong security measures and customer support.
- Never share personal information: You should never directly share your personal bank information, email address, or other personal details with individuals. If someone is asking to create an account using your phone number, do not share any verification codes. Do not let anyone create an account for you.
- Avoid making quick decisions: Scammers will use urgency tactics to create a sense of pressure, claiming that many applicants are interested and encouraging quick decisions or money deposits.
- Verify Rental Applications: Scammers may send fake rental applications via email or text message. You should always verify the email address the application is coming from, verify that all of the spelling is accurate on the application, double check the company name, and be aware of any suspicious typos or grammatical errors.
- Always return the keys: If a scammer tells you to keep the keys in exchange for a quick money transfer, don’t do it! A property owner will never tell you to keep the keys to the property without first signing a legal rental agreement and going through a verification process. You should always return to the keys to the lockbox, and never leave the keys in a different spot than you found them.
- Trust your instincts: If something feels off, too rushed, or unusual about the process, always take the extra steps to research and verify.
With these tips in mind, you can begin your rental search with confidence and caution. For more information on the security measures Rently takes to protect renters, check out our blog: How Rently Makes Self-Guided Tours Safe for Renters.
If you think you’ve been scammed or are being scammed, report it to the FTC at https://consumer.ftc.gov/articles/rental-listing-scams.
