A rental scam is a fraudulent scheme that uses a rental property as bait to trick victims into sending money or providing personal information. Scammers may pose as legitimate landlords or property managers, or they may hijack real rental listings. Once they have the victim’s money or information, they disappear.
10 Types of Rental Scams
- Bait and Switch: The scammer advertises an attractive property that isn’t actually available. They then try to get potential renters interested in a different, usually less appealing property.
- Phantom Rentals: Here, scammers invent listings for places that don’t exist or aren’t rentals, and try to lure renters with low prices.
- Duplicate Listings: Scammers copy the details and photos from a legitimate listing, then repost it with their contact information. They’ll usually propose a much lower price to attract victims.
- Hijacked Ads: This is a variant of the duplicate listings scam where the scammer takes over the email account or website of an actual property owner or landlord.
- Already Leased: The scammer tries to rent a property that has already been rented out to someone else. They usually cannot offer a tour of the property for this reason.
- Rental Agent Scams: The scammer poses as a rental agent and requires you to pay a fee before you can see the property.
- Missing Amenities: The scammer claims the rental includes amenities that it actually doesn’t in order to inflate the price.
- Foreign Owner: The scammer pretends to be an owner who’s out of the country and requests that you send money overseas.
- Security or Background Check Scams: The scammer asks for a fee to run a credit or background check, even before you’ve seen the property.
- Overpayment Scam: The scammer overpays the landlord, and then asks for the surplus to be sent back. The original payment then bounces, leaving the landlord out of pocket.
Most Warning Signs Of a Rental Scam:
- The listing is too good to be true. If the rent is significantly lower than other comparable properties in the area, it’s probably a scam.
- The landlord or property manager is not available to meet in person. A legitimate landlord will be happy to show you the property in person and answer any questions you have.
- The landlord or property manager asks you to wire money or pay with a gift card. This is a common way for scammers to get your money.
- The landlord or property manager asks you to provide personal information, such as your Social Security number or bank account number. This information can be used to steal your identity.
- The listing is full of typos and grammatical errors. A legitimate landlord will take the time to create a professional-looking listing.
- The listing photos are of a different property. Scammers often use photos of real properties that are not actually available for rent.
- The listing is posted on a website that you’re not familiar with. Be sure to check the website’s reputation before you send any money.
If you see any of these warning signs, it’s best to avoid the rental listing. There are many legitimate rental properties available, so there’s no need to take a risk on a scam.
10 Q&A about Rental Scams
Q1: How can I identify a rental scam?
A: Rental scams often involve landlords who are unable or unwilling to meet in person, want to rent without viewing the property, or ask for money before you’ve signed a lease.
Q2: How can I verify a landlord’s identity?
A: Ask for ID, check their name against property records, and ensure any emails come from a professional domain.
Q3: What should I do if I suspect a listing is a scam?
A: Report it to the website where it’s listed, your local law enforcement agency, and your state attorney general’s office.
Q4: How can I protect myself from rental scams?
A: Never send money before viewing a property, always meet the landlord in person, and do a thorough background check.
Q5: What should I do if I’ve been scammed?
A: Contact your bank and local law enforcement immediately. You may also want to alert your credit bureau if your personal information was involved.
Q6: Are there any warning signs I should look for?
A: Beware of listings that seem too good to be true, landlords who are eager or pushy about collecting rent or a deposit, and listings that have poor grammar or spelling.
Q7: Can a rental scam impact my credit score?
A: Unfortunately, yes. If a scammer has your personal information, they could potentially take out loans or credit cards in your name.
Q8: Are rental scams more common in certain areas?
A: Rental scams can happen anywhere, but they tend to be more common in cities with competitive rental markets.
Q9: Can I get my money back if I’ve been scammed?
A: It’s difficult, but not impossible. You should start by reporting the scam to your bank and local law enforcement.
Q10: How can I check if a listing is legitimate?
A: Look for the property on other rental sites. If it’s listed with a different name, or for a different price, it might be a scam. Also, do a reverse image search of the property photos to check if they’ve been taken from elsewhere.
- Do Your Research: Check rental rates in the area to see if the amount is comparable. If the rate is significantly lower, it could be a scam.
- Visit the Property: Always visit the property in person before agreeing to rent or putting down a deposit.
- Verify the Landlord or Agent: Make sure you’re dealing with the property’s legitimate owner or a licensed property agent.
- Avoid Wiring Money: Scammers often ask for money to be wired because it’s harder to trace and recover.
- Be Wary of Pressure Tactics: Scammers often try to rush you into making a decision by claiming there are other interested renters.
How to Report a Rental Scam
If you believe you have encountered a rental scam, it’s important to report it. This can help protect others and potentially assist in catching the scammers. Here are the steps you should take:
- Local Law Enforcement: Report the situation to your local police department. They may not be able to take direct action if the scammer is in another jurisdiction or country, but they can help you start the process.
- Federal Trade Commission (FTC): The FTC takes reports about many types of scams, including rental scams.
- Internet Crime Complaint Center (IC3): This is a partnership between the FBI and the National White Collar Crime Center that accepts online internet crime complaints.
- State Consumer Protection Offices: Your state’s attorney general’s office or department of consumer affairs may be able to help.
- Website Where the Ad Was Posted: If you found the listing on a website like Craigslist or Zillow, report the scam to the site. They may be able to remove the listing and ban the scammer.
Remember, the best way to fight rental scams is to stay informed and take steps to protect yourself. Always do your research, never rush into a decision, and be wary of anything that seems too good to be true.