Consumer Advocacy Group Warns of Rental Scams
Potential Tenants Lose Cash to Rental Scams
It’s exciting to find a new place to rent in your neighborhood or in a new city. That is, of course, unless you get duped. In so-called rental listing scams, scammers will make up listings that aren’t available for rent or simply do not exist in order to fraudulently take your money, according to the Federal Trade Commission. Scammers will often ask for payments like an application fee, a security deposit, the first month’s rent or a mix of such charges.
"Once the payment is sent, the [so-called] landlord or listing person … disappears," said John Breyault, vice president of public policy, telecommunications and fraud at the National Consumers League, a consumer advocacy group.
4 Red Flags to Watch Out For
While it’s a common tactic for different kinds of scams, rental listing scammers will try and create a sense of urgency to get you to pay the money immediately, Breyault said. To work around this issue, experts urge renters to carve out ample time for their search. Doing so can help reduce that sense of urgency.
Rental scams can also fester in housing markets with high competition and low supply, or after natural disasters take place.
"Fraud tends to follow the news and tends to follow natural disasters in many ways," Breyault said. "Particularly if there is suddenly an increase in the number of people who are in need of housing."
1. Unsolicited Messages About a Rental
Personal information like cell phone numbers and emails are readily available on the dark web given the amount of data breaches in recent years, said Tracy Kitten Goldberg, director of fraud and cybersecurity at Javelin Strategy and Research. If you receive an unsolicited message about an apartment that is available for rent, for example, "that would be a red flag," she said.
2. Unusual Forms of Payment Required
If the so-called landlord or listing agent requests you to pay an application fee or the first month’s rent through a wire transfer, a gift card or through cryptocurrency, that is "a huge red flag," Breyault said. Also be wary if they request a payment through payment apps like Apple Pay, CashApp, PayPal and Zelle, per the Federal Trade Commission.
3. Refusing to Meet or Show the Property in Person
"You should always meet these people face-to-face before you fill out any kind of paperwork," Kitten Goldberg said, as well as tour the property. If a landlord or listing agent makes up excuses about why they can’t meet you in person or why you can’t see the rental property in person, that alone should be a red flag, Breyault said.
4. Unusually Low Asking Price
If a rental listing is "priced unusually low" compared to similar properties in an area, be careful, Breyault said. "The reason scammers put listings like that up is because they know that it will attract a lot of eyeballs and potential victims," he said.
Conclusion
Rental scams can be devastating, resulting in financial losses and emotional distress. By being aware of these red flags and taking the necessary precautions, you can protect yourself from falling victim to these scams. Remember to always prioritize caution and do your research before making any payments or signing any agreements.
FAQs
Q: What are some common tactics used by rental scammers?
A: Rental scammers may use tactics such as creating a sense of urgency, asking for unusual forms of payment, refusing to meet or show the property in person, and listing properties at unusually low prices.
Q: How can I protect myself from rental scams?
A: To protect yourself from rental scams, be cautious of unsolicited messages, unusual payment requests, and listings that seem too good to be true. Always research the property and the landlord or listing agent thoroughly, and never send money without verifying the property’s existence and legitimacy.
Q: What should I do if I suspect I’ve been scammed?
A: If you suspect you’ve been scammed, report the incident to the Federal Trade Commission and your local authorities. You should also contact your bank or financial institution to report any fraudulent transactions and request a refund.
