Dealing with Rental Scams

Finding a rental property is difficult enough. Worrying about scams and fake rental ads only makes apartment hunting more stressful. Some scams can be difficult to detect. You may not find out they were fake until the day you arrive with a moving truck.

This page provides information about common rental scams, how to identify them, and what you can do if you get scammed. Tenant’s rights laws can vary by state. For more information about your rights, talk to a landlord-tenant lawyer for advice.

What Are Common Rental Scams?

According to the Federal Bureau of Investigation (FBI) Internet Crime Report, over 11,500 people lost more than $350 million related to rental scams in 2021. There are many types of rental listing scams, most happening online. Common types of real estate scams include:

• Fake listing: Making fake online listings to get you to send fees or security deposits sight unseen
• Identity theft: Getting personal identifying information, including contact information and Social Security number, as part of the credit score check
• In-person viewing scam: Showing a rental property (or short-term rental) that the rental scammer does not own
• Government assistance scams: Someone claiming to be from a federal agency offering rental assistance to steal your personal information or charge a processing fee

Most of these scams happen through email, online ads, or phone. Even legitimate listing websites like Craigslist can have fraudulent ads targeting potential renters. Dealing with a rental agent or management company in person can help avoid rental fraud.

How To Spot a Rental Scam?

There may be different types of rental scams. With a cautious approach, you should be able to identify some of the warning signs of a scam. Potential red flags for rental scams include:

• High pressure to send money upfront before you get into the property (security deposit or application fee)
• A rental price that is too good to be true
• A landlord or property manager who is always out of town or unavailable to meet in person
• Grammar and spelling errors in the property listing
• Asking for payment with a wire transfer or gift cards

Scammers can be very good about giving you a reason why they can’t show you the property or why you need a payment upfront. They can also get aggressive if you are hesitant about sending money, threatening that you will lose the apartment if you don’t send the money.

Don’t send money before you meet the landlord and do a walkthrough. A legitimate landlord will likely want to meet you first anyway and do a credit check as part of the rental application.

If pictures look too good to be true, especially at the asking price, it’s probably fake. However, scammers can use photos of existing buildings and include photos of rental properties to make them look more authentic. You may want to drive by the property and talk to the property manager directly to ask about any available rentals.

What Can You Do if You Get Scammed by a Fake Rental Property?

If you suspect you were the victim of a housing scam, contact your bank immediately. They may be able to stop payment on any check or wire transfer. You can file a police report with your local law enforcement agency and report it to the FBI Internet Crime Complaint Center or the Federal Trade Commission (FTC).

Unfortunately, many scammers operate overseas, and it can be difficult to track them down. If you lose money, it may be too late to get it back. However, if you react immediately, you may be able to get your bank to stop payment. Many credit cards offer chargeback protection so you won’t be responsible for fraudulent charges.

How Can a Tenant’s Rights Attorney Help?

A tenant’s rights attorney can help if a rental company rips you off. Your attorney can review your case, explain your legal options, and help you get compensation. Property owners have to follow local landlord-tenant laws. If they charge too much for a deposit or don’t fix maintenance problems, they may be violating local housing laws.

You can sue your landlord in small claims courts for some landlord-tenant issues. Contact a landlord-tenant lawyer for legal advice about your rights.