Buzz
We're right in the midst of moving season. Leases are transitioning, U-Haul trucks and boxes are in high demand, and stores like IKEA and The Home Depot are crowded. Meanwhile, scammers are hard at work, targeting victims across the country with fraudulent rental ads (some of which, to make things trickier, are not entirely fabricated).
According to the most recent statistics from the FBI, over 11,000 individuals lost more than $350 million to rental scams in 2021, with many other cases likely going unreported. Just last month, the Attorney General of Pennsylvania issued a warning for those searching for rental properties: Scammers are taking legitimate listings and modifying them in an effort to collect personal data and money from victims. However, these scams aren't limited to Pennsylvania.
How does the rental listing scam work?
Scammers often steal legitimate rental ads from real estate websites or rental companies, altering the contact details so that you end up communicating with them instead. Some even go as far as hacking into the realtor’s email account. Another trick is posting ads for properties that are no longer available.
They'll keep you engaged in the 'application process,' gathering your personal information, security deposit, and both the first and last months' rent.
A similar scam, frequently seen during this time of year, targets vacation rental ads. Florida's attorney general recently issued a warning about scammers posting fraudulent vacation rental listings scraped from the internet on platforms like Airbnb and Vrbo. They take your application fee or security deposit and vanish.
Warning signs of rental scams
If you encounter any of these warning signs during your rental search, it’s best to walk away:
They request payment through peer-to-peer digital payment platforms: While landlords may use apps like PayPal to collect rent once a relationship is established, paying via peer-to-peer (P2P) services like Zelle, Venmo, or CashApp is risky if you've never met the landlord in person. Wiring money is also dangerous—once sent, it’s nearly impossible to get back. One safer option is using PayPal’s ‘goods and services’ payment option, which offers protection in case of fraud, unlike the ‘friends and family’ option.
You're asked to pay a deposit or first month's rent before signing a lease or viewing the property: If you’re pressured to pay before getting a lease or seeing the place, it's likely the apartment doesn't exist. Scammers may pressure you to pay to ‘secure’ the rental that is supposedly in high demand. This is not the case. Walk away.
Inconsistent listings: It’s unusual for a property to be listed on just one website, so it’s wise to cross-check the listing on platforms like Zillow, Apartments.com, Redfin, etc. If key details like the agent’s contact information, price, or address don’t match, it could be a scam. Another tactic is to use reverse image search to check where else the listing photos appear.
Unexpected changes: The landlord is out of town, someone had an emergency, or there’s a last-minute switch that means a different person will finalize the lease and give you the keys. These are significant red flags. Scammers are also known to send fake keys to gain your trust (keys are cheap to make and don’t hold much value on their own).
Vague listing details: A great location and a fantastic price, but no mention of utilities and more photos of the neighborhood than the property itself? This is a sign the listing might be fake, and the scammer may not even be in the area, posting generic details instead of actual property information.
They make it too easy: If there’s no background check, no phone call, or no attempt to meet in person, the landlord isn't looking for a long-term tenant but a one-off payment.
How to avoid falling prey to a rental scam
Here are steps you can take to protect yourself from becoming a victim of a rental scam:
Research the landlord on Google and confirm they reside in the area.
Double-check the address and ensure the information is consistent.
Use Google’s street view to verify the property’s exterior matches the listing photos.
Visit the rental property in person and take a tour inside.
Meet the listing agent or landlord face-to-face.
Consider working with a real estate agent to ensure you’re not being scammed.
How to report a rental scam
If you find yourself falling victim to a rental scam, report it to your local authorities and the Federal Trade Commission. Notify the website where the ad was posted to inform them about the fraudulent listing. If you paid via credit card or PayPal’s goods and services option, you may be able to get a refund. Additionally, reach out to the bank you used for the payment, inform them of the scam, and follow their guidance.
