Dream home or nightmare? Identifying rental scams
These days finding a decent place to rent feels like trying to find a needle in a haystack—except the haystack is on fire, and the needle keeps moving. If high rental rates and competing renters weren't enough, scammers are also entering the mix. And then, just when you think you've zoned in our your dream apartment or home, they swoop in like bandits at a gold rush, ready to snatch your rent checks, deposits, and personal information. It's a jungle out there, and the predators are getting craftier by the day.
Annual losses resulting from rental fraud reach a staggering $16.1 billion.
In this article, we’ll delve into the world of online rental fraud, apartment rental scams, and house rental scams, exposing the most common tricks like rental listing scams and fake rental ads. It’s alot we know, but have no fear, we'll arm you with the knowledge to stay safe and show you how Guardio can help protect you from these deceitful schemes. Ready to outsmart the scammers and find your dream home? Let's get started.
Worried about rental scams?
Avoiding the trap: how rental scammers lure you in
With most apartment and housing searches starting online these days, it’s no wonder that fake rental ads are popping up everywhere. Scammers are taking advantage of various online platforms like Craigslist, Facebook Marketplace, and other ad sites to trick unsuspecting renters. They steal pictures of homes from other sites and post fake rental listings, often advertising properties at unusually low prices to lure in victims.
The scammers claim to be too busy to meet in person or may even have the audacity to guide renters through a self-guided tour using an electronic lockbox, asking for a deposit or move-in fee to seal the deal. They use social engineering to create a sense of urgency by telling potential renters that a lot of people are interested in the property. Once payment is made, renters discover the property was never actually available for rent, and the scammer disappears with their money.
Imagine finding your perfect rental place at an amazing price and securing it by sending over the first month's rent or security deposit. You tell your current landlord you're leaving, start packing, and eagerly await move-in day. But when the day arrives, you find out that the property doesn't exist, or the person you thought was the landlord is a ghost. It was all one big scam. You're left homeless, out of pocket, and with nowhere to go.
How can you tell if a rental property listing is a scam?
So, how can you tell if that ad has a rental scammer behind it? Here are seven rental scam warning signs every renter should watch out for while searching for a new place:
Instant move-in? Instant red flag
If someone claiming to be the landlord pushes you to move in without letting you see the property first, be cautious. Scammers often can't access the inside of the property and might instruct you to inspect it by walking around the outside. Always see the property in person before signing a lease or sending any money. In urgent situations, be extra careful with properties available right away—they could be scams or managed by disorganized landlords.
Show me the money—before the lease? No way!
Never send rent or a security deposit before signing a lease. Application fees for background checks are acceptable, but large sums of money should not be requested before all parties sign the lease. Scammers might claim to live overseas and ask for money to be forwarded for the keys, or they may ask for wired money after only online communication. If you come across one of these listings you should report it immediately and stop communication.
Too good to be true? It probably is
If a rental price seems too good to be true, it probably is. A property priced well below the market rate should raise immediate suspicion. Scammers use low prices to lure in renters before switching to a higher-priced unit. Always research comparable rental prices in the area to determine if the listing is fair market value. While a low price might not always indicate a scam, it's definitely worth investigating further.
Poor grammar, lots of typos, and too much punctuation!!!
Be wary of listings full of errors. Serious landlords and property managers take time to write and proofread their listings. If a rental listing is riddled with typos, poor grammar, and excessive punctuation or capitalization, it was likely created by a scammer.
No meeting, no deal
If the person who posted the rental listing says they can't meet you in person, it's a red flag. Even if a face-to-face meeting isn't possible, you should always request a real-time video walkthrough to ensure the property exists. A legitimate landlord will want to meet you, either digitally or in person, to trust you as a renter. Scammers, on the other hand, avoid personal meetings like the plague, so they won’t be able to be recognized or reported.
No screening process? No trust
Professional landlords typically have a tenant screening process, including a rental application and credit check. If a landlord skips this process, it could indicate a scam or inexperience. In either case, proceed with caution.
Incomplete lease? Incomplete trust
Always read through your lease to ensure it's complete. A landlord asking you to sign an incomplete lease may not have your best interests in mind and could change the lease terms later. Make sure there are no blank spaces, vague writing, or incomplete sentences to protect yourself from potential lease manipulation.
How to stay safe
Staying safe from rental scams requires caution and a few smart strategies:
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Google the listing and the address to see if the property is listed at different prices on other sites.
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Always try to meet with the landlord or property manager in person before sending any money.
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Do a drive-by of the property to verify its existence.
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If possible, pay by credit card, as it offers more protection and makes it easier to get your money back if you fall victim to a scam.
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Use services like Guardio to help protect you from fake listings by identifying and blocking suspicious sites and activities.
Guardio: your digital shield against apartment rental scams
While Guardio can't go see the apartment and check it out for you, it can help by acting as your digital bodyguard against rental fraud and other online threats. Here's how:
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Guardio blocks fake links and ads that scammers use to lure you in.
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Guardio filters out phishing emails and texts.
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It gives you a heads-up if your data is ever breached, so you can stay one step ahead of the fraudsters.
With Guardio watching your back, you can navigate the rental market with confidence, knowing you're protected from the digital dangers lurking around every corner.
The bottom line
Navigating the rental market can be a wild ride, but with the right knowledge and tools, you can avoid falling into the traps set by scammers. Remember to always verify listings, meet landlords in person, and use protective services like Guardio. Keep your wits about you, stay vigilant, and don’t let the fraudsters ruin your search for that perfect home. Stay safe out there, and happy house hunting!
