8 Tips to Avoid Rental Scams Online
Online rental listings are an easy way to check for available homes or apartments and can save you tons of time driving between locations or flying to new cities. While there are plenty of legitimate rental property listings, there are also a lot of scammers out there. Fraudulent listings usually have at least a few warning signs, but they might not be so obvious if you’re new to the real estate world. To help you make smart decisions and avoid rental scams online, we’ve put together a few tips for how to spot red flags.
What is a Rental Scam?
Several types of rental scams can be used, often resulting in financial loss or personal information theft. One common type involves the scammer posing as a landlord or property manager, advertising a property that either doesn’t exist or isn’t available for rent. The scammer often lures victims with attractive prices and demands a deposit or rental fee upfront, disappearing once the payment is made.
Another type is when a scammer hijacks a real rental by copying and reposting it with their information. This essentially tricks prospective renters into paying deposits to the impostor. Other scammers may use phishing techniques like sending emails or creating fake websites to collect personal and financial information from unsuspecting victims.
Although online listings are convenient, it’s important to exercise caution before you take any action. Luckily, with a few tips and background knowledge, you can reduce your risk of being scammed.
8 Tips to Avoid Rental Scams Online
Whether you’re just starting to browse available properties or are ready to move as soon as possible, here are some tips on avoiding a scam online.
1. Triple-Check the Listing
One of the first signs of rental fraud is basic errors in the listing itself. Grammar and spelling mistakes might seem innocent, but a professional real estate agent understands the importance of an online listing. Even independent property managers or landlords won’t write inaccurate listings. However, this is among the first of many common rental scam red flags. Those who live nearby and drive by the address may even find that the property type or details of the home/apartment don’t match the physical structure. If so, report it online and keep looking for a place to rent.
2. Google the Address and Do Some Research
The address provided by the rental company should be verified, meaning that it should exist when you Google it. Apartment rental scams might use different pictures or addresses for homes in foreclosure, so take a few seconds and see what comes back. Properties listed several times or with a different listing agent than who you’re speaking with are signs of a red flag.
However, suppose the address appears on popular sites like Zillow or Trulia. In that case, it’s a good opportunity to confirm who the listing agent is and get more assurance that you’re exploring a legitimate opportunity. Cloned listings will have different contact information, and one of them is sure to be a scam.
3. Know When It’s Too Good to Be True
High-quality, professional pictures with top-of-the-line appliances, spotless carpets, and immaculate architecture in an up-and-coming neighborhood will draw in hundreds of prospective renters. While we’re not saying these things are necessarily signs of rental listing scams, the price tag should reflect the average for the area, square footage, and home renovations. So, it’s probably fake if you see immaculate pictures with a monthly rent well below what you’d expect. You may even be able to confirm if the pictures are real by doing a reverse image online search. Still, good marketing tactics that make rental properties stand out are out there, so don’t assume that all legitimate properties have below-average marketing.
4. Search for the Landlord or Property Manager Online
Another option is to search for the rental company online. Trusted rental companies or landlords will have a website, reviews, and a clear history of tenants so that you can gain some confidence that they’re the real deal. Websites created by scammers might appear low-quality, have fake-sounding testimonials, and lack credibility.
When the rental scammer has tried the same method several times, you may even find reviews from others saying they’d been a victim. Listen to these reviews! No one would write scam reviews about a reputable property or potential rental company, so this is the perfect time to move on.
5. Never Send Money Upfront
Another sign of a rental scam is when you’re asked for money upfront. The scammers may tell you that you need to wire money for the application fee and the first month’s rent or security deposit before a rental agreement has even been discussed. Never, ever pay rent or a security deposit without being 100% sure that the rental is legitimate. Application fees may differ, as these are quite a common part of the rental experience, but they should never be paired with any other financial requests. Often, application fees are processed online by a third-party server, and if the price tag is abnormally high, proceed with caution. The average application fee is between $25 and $75 per applicant.
6. Ask About the Tenant Screening Process
Legitimate landlords or property management companies will want to know some information about their prospective tenants. In most situations, they will perform both a credit check and a background check so they know who they’re renting to. When rental scams occur, they often forgo asking about any of these things to make the process as fast as possible. While it might not seem important, this simple step can help you avoid becoming a victim of a rental scam.
7. Visit the Property Before Signing a Lease
Requesting a tour to see the property before taking action is one of the best ways to avoid rental scams. When you see the property before signing, you know that it at least exists and can meet the property owner or real estate agent face-to-face. Plus, this gives you a chance to tour the property and make sure that you actually like it before you sign a lease. Even if it’s a trusted landlord or management company, you should always see the property in person to ensure it fits your needs and is accurately portrayed in the listing.
8. Always Sign the Lease in Person
Don’t sign the lease agreement if you don’t see the apartment. Many housing scams will pressure you to sign the lease as soon as possible, often exerting high-pressure tactics. They might tell you that several other rental applications are being reviewed or that they have other tenants ready to send the security deposit. Although some markets are competitive, a landlord or rental agent isn’t going to pressure you to send a lease through an email or on some dodgy website.
What to Do if You Think You’ve Fallen Victim to a Rental Scam
Online rental scams are a big deal and shouldn’t be taken lightly. Your action will depend on how much personal information you’ve disclosed and whether you’ve made a deposit. If you’ve sent money by check or wire transfer, contact your back as soon as possible to try and stop the payment.
If you’ve sent out information like your Social Security number, you’ll want to set up a fraud alert with credit reporters. This way, if the rental scammers try to apply for credit using your name, you’ll be notified immediately.
Even if you haven’t sent the money yet or provided personal information, it’s important to report rental scams to your local police, the Federal Bureau of Investigation (FBI), and the Federal Trade Commission (FTC).
Working with a Trusted Real Estate Agent
Partnering with a real estate professional is the best way to remove all of the guesswork and ensure you have access to verified listings. Whether you’re looking for a short- or long-term rental, First Star Realty can help. Our team of real estate professionals have years of practice and knowledge and always work to ensure you have an amazing experience. We truly believe we haven’t done our job if you don’t have an amazing experience with our realty services.
We also have a team of property managers that care for rentals, so you can rest assured you’re working with a legitimate partner. So, contact First Star Realty if you’re ready to find your new rental, put your property online, or even buy or sell a home in Northwest Arkansas. Our highly seasoned real estate professionals are dedicated to providing exceptional, personalized service to our clients. Call us at 479-267-1600 to get started, or fill out a contact form today.
