Currently, rental scams and other online fraudulent activity are skyrocketing! More than ever, consumers are turning to the world wide web for goods and services due to COVID-19 recommendations and restrictions.
There have been 535,664 overall fraud reports from January 1, 2020, to June 29, 2021, according to the Federal Trade Commission, for a total of approx. $480.36 million lost. To circumvent an online rental scam, it is important for prospective tenants to get educated. This article will illustrate the online rental scam archetype, then provide information on how to avoid the con.
Crafty criminals find rental properties online, then steal the photos and information to forge a listing, inserting their own information. The property may be vacant, occupied, for rent, or not. Sometimes the scammer may even rent an apartment to use for bait. Often the listing price is offered much less than the local rental market value. When the prospective tenant inquires about the listing, scammers take several different angles.
Most scams demand upfront payments by wire or cash for first/last month’s rent, security deposit, or background checks. Scammers use high-pressure tactics, claiming the property won’t last to force quick decisions without physical viewings or signed leases.
Unpoliced classified sites are easily manipulated. Renters must be exceptionally cognizant of rental scams on Craigslist. Text messaging has also become a primary channel for fraudulent solicitations.
While criminals are pretty savvy, there are still steps you can take to minimize your risk of being scammed while searching for a rental property. Using a reputable Realtor is the most effective way to avoid rental scams.
However, you should also know what cues to look for in a listing when searching for a property on your own. The listing description, photography, domain, and contact information should be examined thoroughly for red flags.
If friends or family members are not able to recommend an agent, look up local brokerages and verify business standing through your state’s division of corporations (such as the Florida State Division of Corporations).
The beginning of a website domain should have an S as in “HTTPS”—indicating an SSL certificate protecting visitor information. In the middle, examine the domain name closely for sneaky extra letters and punctuation meant to trick the eye.
At the end, anything aside from .com, .org, .gov, or .edu should be questioned. On email addresses, look for odd punctuation, misplaced capital letters, and grammatical errors. Verify that emails originate from established providers or official company domains.
Research the neighborhood average rental rates. If a 2-bedroom unit rents for $1,700/month across the area, a $600 listing is almost certainly fraudulent.
Confirm the owner’s name through county property appraiser records (for example, the Palm Beach County Appraiser). Match the landlord’s name to public records before proceeding.
Always meet the landlord or official representative in person when possible, ask for business license details, and refuse to send funds until you have physically inspected the property and received a signed lease copy.
Prospective tenants are not the only ones vulnerable to online fraud. Landlords and property management companies also need to be alert. The best protection is working with a licensed real estate agent or brokerage.
Thoroughly vet applicants regarding income, employment, and pet registrations. Utilize trusted screening tools & resources, request references, and confirm deposit checks clear prior to releasing keys.
Add prominent watermarks, logos, or signatures to property photos before posting online. Perform routine reverse image searches on your photos to ensure scammers aren’t hijacking your listing.
Both landlords and tenants should get educated to avoid online rental fraud. Perform thorough research, use a licensed realtor or brokerage, examine listing descriptions meticulously, and refuse to pay anything until an executed lease is in hand.
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