Common rental scams and landlord frauds

How do rental scams work? 

Scammers posing as landlords or property owners create listings for homes or apartments that don’t exist or are illegitimate. The goal of these “landlords” is to solicit money from prospective tenants for their fake listings. Fraudsters may copy photos from a real listing, repost a listing that is no longer available, hijack an ad with their information instead of the real landlord or utilize AI to create images or videos of fake apartments. 

Tips to help on how to tell if a rental is legitimate

• Requesting deposit money first. Scammers will try to get you to hold the rental and send money before ever meeting you, showing the property or having you sign a lease. If the listing asks for payment or wired money up front, walk away from this potential security deposit scam.
• The landlord or leasing agent is not available. If the person who replies to the listing claims to be out of town, sick or simply unavailable to meet, yet still demands a security deposit, the listing could be a scam. Scammers avoid meeting so you’re unable to report them and they escape with your deposit. A legitimate landlord will arrange to meet you in person and show you the property.
• Fake or false listings. Even if you meet the landlord, you should still view the property before signing a lease. It's easy for scammers to copy another listing and claim to have a fake property. Another red flag is a request for an unusually high security deposit, as the scammer will quickly disappear after receiving the money.
• Added fees for background checks. While it is common for landlords to check a potential tenant's credit and background, some landlord scams involve requiring potential tenants to pay exorbitant fees to cover these checks.
• No lease is required. Without a lease, you might be at risk for potential problems. Even month-to-month leases usually have some form of agreement that outlines the responsibilities of both parties.
• Requests for personal information. Scammers may also be on the hunt for personal or financial information. Only provide information to legitimate landlords or rental companies after meeting with a landlord, investigating the company and exploring the property. 

How to help spot a rental scammer on Craigslist, Hot Pads, Zillow and other online classifieds

• The apartment lease is too good to be true. If you find a listing in a popular neighborhood that's a few hundred dollars less than other rentals in the same area, chances are you are looking at a fake listing. Also, be wary if the amenities are extensive without a reflection of that in the price. The scammer most likely copied from a real listing and is offering at a lower rate to appeal to unassuming renters.
• Replicated apartment photos and description. It's a good idea to pay attention to the photos of the listing. If you notice a Multiple Listing Service (MLS) watermark, chances are the scammer copied the photos from the local real estate MLS. You can verify this by either performing a reverse image search or searching the address to see if the property is listed for sale on other real estate sites. And, a lot of times, a Craigslist listing is identical to the MLS description.
• Vague details in the rental listing. If the listing seems overly vague or doesn't make sense, it could mean the person creating the listing has never seen the property.

How to help avoid rental scams

• Meet your landlord in person. Before the meeting, be prepared with questions about the lease agreement, how the property is managed and if pets are allowed. Getting your questions answered may help you avoid fees, miscommunication and headaches down the road.
• Ask to see the property in person to help ensure the pictures and location match what was advertised. Do not pay a deposit until you have seen the property and confirmed it is a legitimate listing. Make a checklist of what you should be looking for when viewing apartments. A rental property viewing checklist will help you stay organized and prepared when viewing properties.
• Do online research about the landlord or company that owns the property. Read the reviews other people have provided and if there are many negative ones, you might want to consider other options.
• Beware of cash requests to pay for an application, deposit or rent. You should be able to pay in a way where money can be tracked. Only provide your bank information or make the payments after you have confirmed it is a real and legit company or landlord.
• Search the address. Google the listed address to see if it is a legitimate property and match the building photos if there are any provided.

Steps to take if you are a victim of a rental scam

• Call the police. The police can help find the scammer and possibly get your money back.
• Contact the publisher of the listing. They can remove it from the site. Most online classifieds have a place to report scam or fraud within the website itself. 
• Report fraud to the Federal Trade Commission (FTC). The FTC is responsible for protecting consumers including those harmed by a rental scam.
• File a complaint with the Internet Crime Complaint Center. This is where people can report a crime that happens online.
• Consider sharing your experience. By warning others about what happened to you, you can help prevent someone else from falling victim to the same scam.

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