Common Rental Scams
According to CNBC, “Renting an apartment or a single-family home may seem easier than buying one, especially as so much of the process is online.” Easier, however, isn’t always safer. More than 43 percent of renters have found listings that seem fraudulent, and more than 5 million have fallen for common rental scams, often losing thousands of dollars.
Common Rental Scams
Rhonda Dudley, a single mom in Kansas City, had been looking for a rental home for close to two years, but nobody would accept her application. It was disheartening, but she knew why. She didn’t meet the standard qualification of earning three-times the monthly rent, and then there was her past.
“I’m a recovering addict,” she said. “I’ve been clean for two years and had a job for two years,” she said.
But none of it seemed to make a difference until she contacted the person renting a home on Craigslist. After applying, she received a message back.
“Congratulations, you’ve been approved. Send me a $500 deposit via Cash App or Zelle, and I commence to send you the keys,” her potential landlord wrote.
He went on to tell her that he couldn’t meet with her in person or show her the inside of the home because he was in Atlanta caring for his family after a “tragic accident which left one of his children in the hospital, one deceased and his wife disabled,” Dudley said.
The landlord didn’t know when he’d be back in Kansas City. That’s why he needed her to send the $500 deposit, and he’d overnight the key.
What Are the Most Common Rental Scams?
According to Apartment List, some of the most common rental scams are:
- I’ll Mail You the Keys: When the alleged property owner states they are out of town or the country, and they will need to mail you the keys.
- Bait-and-Switch: The scammer shows one unit but has you sign for another.
- Already Leased: Renter pays collection fees or security deposits on a unit already leased.
- Hijacked Ads: Fake ads for real properties, usually homes for sale, with the contact info altered.
- Phantom Rentals: Made up listings on places that aren’t real or actually up for rent.
So How Do You Protect Yourself?
- Payment Methods: Always pay with a credit card for the consumer protections they provide. Don’t pay by cash, check or wire transfer, which are all payment methods scammers lean on.
- Property and Owner Verification: Trip Savvy recommends renters use Google Maps or similar services to make sure the property exists. Renters should also look up the owner or property manager and check if they’re a part of any renter associations.
- The Reader’s Digest says It’s not uncommon for renters to do a drive-by to see if the house looks as good as it does in the photos. Pay particular attention that the property has a sign out front from a realtor or property management that matches match up with the “landlord” you’ve been talking to.
- You see spelling or grammar errors in the ad. That’s a clue that this is a scam.
- if there’s a number one rule to follow, it’s the most cliche: “Is this deal too good to be true?”
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