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What Can You Do to Avoid Rental Scams?

Rental scam

Rental scams are on the rise, and they’re no small thing. . It’s important to be careful. Rental scams involve scammers posing as landlords or property managers to steal money from unsuspecting tenants. If you want to avoid being a victim of a rental scam, there are some things you can do to protect yourself. 

What is a rental scam?

Rental scams are attempts to defraud you of your money, or the property you’ve rented. The schemes will typically unfold in a variety of ways, with the consistent theme being that someone posing as a legitimate landlord or property agent attempts to get you to sign a lease and send money. There’s often no rental, or the person who “leased” you has no legitimate claim to the property or does not own it.

Types of Rental Scams

Here are a few types of rental scams that you should be aware of.

Lease Scam

The most common is the “lease scam.” In this scam, someone pretends to be a landlord or management company and offers you a lease to rent an apartment or house. They may ask for your name, address, credit card number, and other personal information. Once they have this information, they may use it to charge you for the lease or for other services that you didn’t agreed to. They may also try to take over your credit card or other financial accounts.

Front-to-Back Scam

Another type of rental scam is the “front-to-back” scam. This scam happens when someone offers to help you find an apartment or house but then asks for money before they can help you. They will promise to get you a great deal on a place to rent and demand that you send them money before they get started. Once they have your money, they may not be able to help you find a place to rent or may charge you more than the advertised price.

Scheme to Induce Investment

This scam involves someone convincing you to invest in a property or business. They may offer you a high return on your investment or promise special deals that you can’t get anywhere else. They may tell you that the property is a good investment or that they have special knowledge about the market. However, this person is only interested in taking your money and not helping you with the property. 

Landlord Fraud

This happens when someone tells you a great deal about a place to rent but doesn’t have the property available. They may ask for money upfront or agree to receive monthly rent but never provide the rental property. This can lead to major financial problems if you end up having to live in an unsafe or unsanitary situation. Be sure to do your research before signing any rental agreement, and don’t let anyone pressure you into making decisions you don’t feel comfortable with.

Scam Involving Online Rental Services

Finally, scams involving online rental services are common. In this scam, someone contacts you offering to help you find an apartment or house to rent. They will offer to show you different listings and help you decide. However, once you make a decision, they will ask for money before they can help you move forward.

How to Spot a Rental Scam

Look for these signs that can help you spot a rental scam.

  1. You’re Pressured to Lease and Asked for Money Upfront: Rental inquiries ensure potential tenants understand the lease and building policies. If an agent is pressing you to sign a contract without seeing the rental, they may not have the proper authority to rent it out. A landlord or representative for the property owner should not charge you to tour a property. Someone could be trying to take your money and run if they charge a fee.
  2. Rental Pictures Look Too Good to Be True: If a listing looks too good to be true, it probably is. Always ask to see the property before signing on the dotted line or depositing a any money.
  3. Rental Listing Has Errors: Fraudulent activity can be more easily recognized if you take the time to look out for inconsistencies within listings. One easy way to spot a scam is to pay close attention to how people use upper and lower cases in their text. If there are too many uppercase letters, it’s likely a scam. 

Prevention Tips for How to Avoid Rental Scams

Rental scams are a sad reality for many people and often result in costly losses. Here are some tips to help you avoid them:

  1. Check the company’s credentials: Make sure that the company you’re dealing with is licensed and legitimate. If you have any doubts, contact the relevant authorities.
  2. Do your research: Before signing any contracts, be sure to do your research on the company and the property. Ask for recommendations, and ask other tenants if they’ve had positive experiences with the rental property.
  3. Question any unusual requests: If someone makes unexpected requests or demands during your lease negotiation, be cautious.
  4. Meet with the landlord in person: Ask to see the property in person and ensure the landlord is licensed, insured, and has clear contact information.
  5. Never give your landlord access to your bank account or credit card details without your written consent. If you do, you may be opening yourself up to potential theft or fraud.
  6. Beware of hidden fees: Always be careful about how much you’re being charged for things like damage deposit or cleaning costs – these charges can quickly get out of hand. Ask the landlord for a breakdown of the costs before signing.
  7. Avoid wire transfers or payments made through third-party platforms. These methods are often used in rental scams because they are difficult to trace and report.
  8. Don’t fall for promises of free rent, groceries, or utilities in exchange for signing a lease agreement or moving in quickly. These offers can be fake and could lead to major financial losses.
  9. Be wary of rental properties located in remote areas. Properties located outside major cities or near popular tourist destinations may be more likely to feature fraudulent activities, such as fake photos or misrepresentations about the property itself.

What to Do if You’ve Been Scammed

If you’ve been scammed, there are a few things you can do to minimize the damage.

  • File a complaint with the Internet Crime Complaint Center.
  • Contact your bank immediately, and ask them what your next steps should be. Then file a complaint with your local police, the FBI or the FTC.
  • If you’ve given sensitive information to a scammer, consider setting up a fraud alert on your credit reports. Any attempts to apply for credit in your name will be sent straight to you.
  • Give all details to the police regarding the situation you encountered and the person that perpetrated the scam.
  • Contact a lawyer.
  • Leave that fraudulent company a clear, negative review. Make sure that no one else is misled by the same people.


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