Especially for those in major cities where the rental market is tough, finding a new place to live can be difficult. In an effort to make the exhausting process easier, many skimp on their research and rush into agreements to have the taxing process over with. Scammers prey on these situations, luring you in with online ads of beautiful listings at low prices before telling you that time is short, others are interested, and immediate action is required to secure the listing.
After paying a hefty security deposit, the first and last month's rent, and an agent's fee, you discover the property is unavailable and maybe never even existed. ApartmentList reported that 43.1% of renters have encountered a fraudulent listing, and 5.2 million renters have lost money because of rental scams.
Research Rental Listings Thoroughly
Scammers often post ads with attractive photos and low prices to lure in renters. Before committing to a property, look up the address and contact information of the landlord or agent. If possible, compare listings on multiple rental sites to ensure the listing isn’t being copied from a legitimate source.Avoid Rushing Into Agreements
Scammers may pressure you to act quickly, claiming there’s a lot of interest or limited time to make a decision. Take time to review the lease, and if anything seems rushed, be cautious. A legitimate landlord or agent will allow you time to review details before sending payments.Never Pay Before Seeing the Property
It’s best to view the rental property in person before making any payments, especially if the listing seems too good to be true. If an in-person visit isn’t possible, request a virtual tour and ask for recent photos to verify authenticity.Use Secure Payment Methods
Avoid wiring money or paying with prepaid gift cards, which are difficult to trace and recover. Use secure payment methods, such as a check or credit card, which offer better protection in case of fraud.Verify the Landlord’s Identity
Ask for the landlord’s or agent’s identification, proof of ownership, or property management details to ensure they are who they claim to be. You can also research the property ownership through local tax assessor websites to verify the owner.Get Everything in Writing
A legitimate lease agreement should clearly outline all terms, including rent, deposits, and maintenance responsibilities. Keep copies of all correspondence and agreements, and if a landlord refuses to provide a written lease, it’s likely a red flag.Report Suspicious Activity
If you suspect you’ve encountered a scam listing, report it to the listing website, the Federal Trade Commission (FTC), or the local housing authority. Reporting helps protect others from similar scams.
Federal Trade Commission (FTC) Rental Scams Guide
Provides details on identifying, avoiding, and reporting rental scams, with examples of common tactics.Better Business Bureau (BBB)
A valuable resource to check for complaints against landlords or rental agents and verify their reputations before making any payments.Consumer Financial Protection Bureau (CFPB)
Offers educational resources and tips for renters to navigate housing scams and protect their finances.Apartment List’s Renter Resource
Apartment List provides rental search tools and resources, including guidance on avoiding scams and reporting fraudulent listings.National Council on Aging (NCOA)
Shares scam prevention advice specifically tailored for older adults, including guidance on recognizing fake rental listings.