Don’t let rental scams derail your housing search.

Rental scams are a growing problem that exploit the hopes and anxieties of people simply looking for a new home. With the cost of living and real estate prices increasing every year, finding a good deal can feel like a breath of fresh air.

After weeks of browsing listings and finally discovering the perfect apartment or house at an unbelievably low price, you may feel excited and ready to move forward. However, before you put down your deposit, take a moment to carefully consider the offer. If it seems too good to be true, it probably is. Failing to do so could result in falling victim to a scam.

Understand the tricks of scammers
There are many different types of rental scams, but here are some of the most common ones you should be wary of:

• “Too good to be true” deal: Rent rates significantly lower than the typical market rate for similar properties are almost always a scam. Scammers often justify the low price by claiming they need to rent quickly due to a job change, relocation, or family situation. This tactic preys on both your desire for a bargain and your sympathy for the so-called landlord.
• Non-existent properties: These listings feature beautiful, professionally photographed photos and amenities at an unbelievably low price. In reality, the property does not exist. Scammers often steal photos and descriptions from legitimate listings of homes for sale or rent. Their goal is to make you fall in love with a place that you will never be able to move into.
• “Out of town” landlord: A scammer may claim that the landlord is out of town, using this as an excuse to prevent you from viewing the property in person. This isolates you and pressures you to send money without seeing the property, which is a key tactic used by scammers.
• High-pressure tactics: Scammers want you to act quickly, bypassing critical thinking. They often claim that multiple interested tenants are vying for the property, or that it will soon be rented by someone else. Phrases like “Act now!” or “This won’t last long!” are designed to make you panic and override your better judgment.

Spot the red flags: Signs of a potential scam
When searching for a new rental, it’s easy to overlook red flags in the excitement of finding a potential home. Here are a few common warning signs:

• Limited information: Be cautious if a listing only provides a generic email address and lacks a contact phone number. Legitimate landlords or property managers typically offer clear, direct ways to reach them.
• Poor communication: While not every landlord is a grammar expert, a message filled with glaring typos, strange punctuation, or inconsistent capitalization is a major red flag.
• Payment required before viewing: Never send money before seeing the property in person and meeting a verified landlord or property manager. Scammers will often come up with excuses to prevent you from viewing the place.
• Sketchy payment options: Avoid using payment methods that are difficult to trace or don’t offer buyer protection, such as wire transfers, gift cards, cryptocurrency, or cash apps. Reputable landlords typically use secure, established payment methods like checks, credit card transactions, or verified online platforms.

The serious consequences of rental fraud
While rental scams can cause emotional distress, the financial and legal consequences can be even more severe:

• Significant financial losses: Scammers often ask for deposits, first and last month’s rent, application fees, and even fake “holding fees.” If you pay these fees, you could face substantial financial loss.
• Identity theft: Scammers may request personal information such as your Social Security number, bank account details, and identification documents. This puts you at risk of identity theft, which can lead to fraudulent accounts, loans, and other crimes in your name.
• Legal trouble: In some cases, victims of scams may resort to drastic actions, such as attempting to sublet a property they don’t own or breaking into a rental they were misled into thinking is theirs. These actions can result in serious legal consequences.
• Difficulty finding future housing: Legitimate landlords and property managers often conduct background checks and request references before approving tenants. If your experience with a scam leads to eviction or a negative report, it could make it more difficult to secure housing in the future.

Being aware of these scams and knowing the signs can help you avoid falling victim. Always be cautious, verify details, and trust your instincts when dealing with rental offers.