Ways to Avoid Rental Scams
WAYS TO AVOID RENTAL SCAMS
Internet deception is an ever-present danger in online advertising. Read some tips from our team on how to avoid being victimized by rental scams!
How to Spot a Fake
Spotting a fake is not always easy. Red flags to look for include:
- Incorrect or poor grammar in the ad or email correspondence
- A canned email response
- Listings that are too good to be true
- Emails that demand you transfer money immediately to reserve the property
- Any attempt by a landlord to remain anonymous
Current Scams
Watch out for these recent scams going around the internet. Recognize and avoid them by following our tips below.
Scam #1 – Take the Money and Run
A current internet rental scam involves fraudulent homeowners showing another person’s property and immediately asking for security deposit. By the time the potential tenant realizes the rental was a hoax, the bandit has made off with your money. The solution to avoid this scam is to only provide the security deposit once you have a signed lease agreement.
Quick Tip: Never wire funds from an email request.
Quick Tip: Never deal with untraceable funds, such as cash or a wire transfer to an unknown account.
Scam #2 – Fake Advertisements
Another contemporary fraud involves thieves copying legitimate advertisements from the internet and re-posting them with their own contact information. After a prospective tenant contacts the false advertisement, the thief often makes an excuse that the property cannot be shown and asks for a deposit to “reserve” the unit. Once the money changes hands, the con artist is never heard from again.
Quick Tip: Not sure if your email correspondence with a homeowner is legitimate? Copy portions of the email and paste them into Google. Some email communications are canned responses that have been sent out before. They can be found by adding the exact email response to a search engine. Some deceiving emails are reported online and serve as a warning that this email communication is a dupe and should be ended.
Quick Tip: Take a look at this article on a fake advertisement. It’s a good idea to always be cautious when strictly using email to communicate with a potential landlord.
Scam #3 – Fraudulent Fees
Anytime someone asks you to complete an online application and pay for a background check, be wary. Common online hustles include emails that link the tenant to external websites that ask for payment. This often is a deception. The link is often fraudulent and the background fee goes into the pocket of a fraud.
Quick Tip: If you are contacted and recognize the scam, cease email correspondence immediately. Do not send any personal information, such as a social security number, date of birth or bank accounts.
Quick Tip: If you have given personal information, take these steps. First, report the ad on Craigslist: There is a link at the bottom of every email sent through Craigslist’s routing system that reads, “Please flag unwanted messages (spam, scam, other)”. Follow that link to report the fake advertisement. Second, record the email address as spam in your email program. This will help ensure that similar emails are marked as suspicious and filtered in the future.
Scam #4 – Do You Know Your Market?
If a property sounds too good to be true, it probably is. “Wow, a four bedroom home in downtown Greenville for only $600 a month?” Knowing the current market price for homes and apartments can prevent a lot of trouble. Always get the property address, drive by the location and contact the homeowner by phone and in person. Most scammers ask you to pay a deposit to “hold the property” before you see the home or meet the owner.
Quick Tip: Never rent a home without first viewing the interior yourself.
Quick Tip: Only deal locally, meeting the homeowner in person. Contact the current tenants to confirm that the property is legitimate.
Tips on How to Avoid Craigslist Craziness
Don’t rely on Craigslist. The site is filled with professional scammers who work to steal money or personal information. The site is not bad per say. It offers local listings and can help you find a deal, but since Craigslist is a free service it can be full of deceiving advertisements. Do these things to avoid a Craigslist con:
- Demand a written lease
- Never rent site-unseen
- Meet the landlord or landlord representative in person
- Conduct basic research on Google
- Be aware of your market rates
- Be aware of high-pressure sales tactics
- Avoid subleasing
Protect Yourself
A good rule to live by is to never give out financial or personal information over email. By avoiding this, even if you respond to a fraudulent advertisement, you will not cause lasting damage to your identity, credit or bank accounts.
The best solution to online scams is to become informed on how to avoid them (and share these tips with others!).
The best way to avoid rental scams is to deal locally. Contacting a local property management company is the best way to find, view and rent properties in your area. Alpha looks out for our community and wants to help you avoid rental deceit.
Have you ever experienced a rental scam? Could the advice above help you to avoid a future scam? Please let us know in the comments section below.