If you’re a renter in today’s competitive housing market, finding the perfect apartment might stress you out enough without the added worry of falling prey to rental scams. Unfortunately, although the digitalization of rental listings provides a lot of advantages and comfort, it also increases the opportunities for scammers to exploit unsuspecting renters. 

Understanding how to recognize and avoid these rental scams is crucial for those who are looking for apartments, so they can spot the red flags and take action against potential scammers. In this article, we cover some of the main types of rental scams and we offer you advice on how to act if you encounter one.

Identifying Common Rental Scams

• The bait-and-switch

The bait-and-switch scam involves a fake or unavailable unit, advertised as a great deal. Scammers catch the eye of prospective tenants with well-designed listings at below-market prices. Once interest is expressed, these scammers then attempt to divert renters to more expensive or less desirable units, or they may claim that the initial property is suddenly unavailable.

• The phantom rental

Phantom rentals are particularly insidious because they involve scammers posting listings for places that they don’t manage or that simply don’t exist. Often, these scammers will steal descriptions and photos from legitimate ads, which makes their offers seem real, and more affordable than other apartments on the market. Renters who want to secure the place might be encouraged to act quickly and be pressured by a false sense of competition and urgency created by the scammer.

• Upfront money

The upfront money scam is a common ploy where those who create listings and ads ask for a security deposit, the first month’s rent, or an application fee before you’ve even had an opportunity to see the apartment or sign a lease. They pressure renters to do so to secure the apartment, generally by saying there are other parties who are interested and the offer might disappear. Often, once the payment is made, the scammer disappears with the money. This leaves the renter without the apartment and quite a large sum of money.

• Hijacked ads

Hijacked ads involve scammers who take real rental listings and repost them with their own contact information. They impersonate the real landlord or property manager and engage with potential renters as if they legitimately own the apartment and have the right to rent out the property. This can lead to renters paying deposits or rents, or even application or credit check fees, without ever being able to enter the run for that apartment.

• Missing landlord

The missing landlord scam occurs when a "landlord" claims to be out of the country and insists on renting the property remotely. They typically ask potential renters to wire them money in exchange for sending the keys by mail. Almost invariably, such scenarios are scams. Real landlords will generally have local contacts managing the property or will be available to meet in person.

How to Avoid Rental Scams

Now that you know what the main types of scams are, let’s see what you can do to check whether a listing is real or fake.

• Verify the landlord’s identity

Make sure you always check the identity of the landlord or agent you are talking to. You can do so by asking for proof of identity and confirming that the person you are dealing with is truly authorized to rent out the property. You can verify property ownership through county records, which can provide reassurance that you are dealing with legitimate parties.

• Never rent sight unseen

It is crucial that you see the property in person. Physical inspections or, at the very least, a live video tour of the property can save you from many common scams. If personal visits are not possible due to logistical reasons, arranging for a trusted friend or relative to view the property on your behalf is advisable. Avoid renting any property that you have not seen in some form.

• Don’t pay with cash

Avoid cash transactions and choose traceable payment methods like checks or credit cards. These methods offer you proof of payment and can typically be traced and recalled by your bank if it turns out that you are the victim of a scam. Be very wary of landlords who are very insistent on you paying rent or deposits in cash.

• Double check the address

Always research the address. You should search the internet to see if the property is listed elsewhere under different conditions or prices. Use tools like Google Maps and Street View to verify that the property matches the images and descriptions in the advertisement you are responding to. And you can even do a reverse Google image search to see if those images are used in other ads as well. This could help you find the real ad that was hijacked by the scammer.

• Check reviews

Looking for reviews and testimonials about a landlord or property management company can also reassure you that they’re real. A credible landlord should have a history of interactions or reviews from previous tenants. Scammers, on the other hand, don’t usually have an online presence or they have inconsistent details that do not add up.

• Read the lease thoroughly

Read the lease carefully before signing. Check that all terms and conditions are clear and reasonable, and that there are no clauses that seem unusual or unfair. If anything in the document is unclear or if it seems like they might be taking advantage of you or rushing you into signing, consider consulting with a legal professional who can provide clarity and guidance.

• Trust your gut

Lastly, always listen to your instincts. If a rental apartment seems too good to be true, it usually is. If a landlord’s behavior is odd or it makes you uncomfortable, it’s better to trust your gut and step back. Scammers often create a sense of urgency to rush people into making decisions without taking the time to really think about what is happening.

Conclusion

Finding a new apartment is an exciting process, but it’s important to proceed with caution. Educate yourself on common types of scams and take proactive steps to verify the property and the person you are dealing with. These steps will help you be more relaxed in your apartment hunting experience and enjoy the process.

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