How to Protect Yourself from Rental Scams

Scammers are everywhere. If you need something, it's safe to assume there's a scammer out there thinking of ways to exploit that need to their own benefit. And finding a place to live is no different.

Rental scams can be costly (and more than a little heartbreaking). If you're in the market for a new apartment, consider these popular scams and how you can avoid them:

Most common rental scams

Fake apartment listings

You shouldn't believe everything you see online and that includes apartments for rent.

It's incredibly easy for scammers to post apartments for rent that don't exist or aren't theirs to rent. They may steal photos and descriptions of real apartments or simply make the whole thing up.

The goal is to get you to pay an application fee or possibly even a deposit and first month's payment, all for an apartment that doesn't really exist.

Duplicate listings

What if the apartment is real and it really is for rent, but the contact info in the ad takes you to a scammer?

That's the gist of a duplicate listing scam. The scammer uses a real property that's being advertised for rent, but swaps in their contact info and posts the ad themselves. 

Being a diligent renter, you go to the property and see that it's "real" and definitely for rent. You pay the scammer, but never get a key, later finding out that they had no authority to rent you the apartment in the first place.

Bait-and-switch

Bait-and-switch is a common scam across basically every industry. It's when you use the allure of one high value item or absurdly good sale to get people in the door, and then claim that the deal isn't available anymore or the item is sold out, and try to get them to buy something else.

In the rental world, this is advertising a highly desirable property (great location, great price, all new, etc.), but when a prospective renter comes to see the property, you tell them that they just missed their chance and pressure them into agreeing to rent a different (less desirable) property.

The dream apartment may never have existed, but the idea that units are going quickly can trick people into signing a lease on a property they wouldn't have considered otherwise.

Sublease scams

A sublease is when a renter (not the owner) rents out a property to another tenant. It can be a good alternative to breaking a lease if the original renter's circumstances change unexpectedly. Typically, the landlord needs to agree to allow the sublease.

But what if you agreed to sublease an apartment from someone who's not even a tenant of that apartment? Given the fast moving and unplanned nature of most sublease situations, it may seems reasonable to agree and pay for a sublease with little to no paperwork, which is how scams happen. 

Lockout scams

You find a good apartment. You even get a tour and meet the landlord. You agree to sign a lease and hand over your deposit and first months' rent. The only thing left is for the landlord to give you a key to the apartment. Except...that never happens. 

Over and over, the landlord makes excuses for why they haven't been able to provide keys to the apartment. And that's because they don't intend to ever give you a key. They keep your money and you get nothing.

Identity theft scams

Credit checks and background checks may feel like a normal part of the apartment application process, but when a landlord asks for personal information upfront, before you've even seen the property, that's a huge red flag. Scammers can use that personal information to steal your identity.

How to avoid rental scams

While the details of all these rentals scams can change, the basic ways that you can protect yourself are fairly consistent:

• Verify both the property and the landlord. Ads can be fraudulent. Look up the property. See it with your own eyes. Look up the landlord or rental management company. Verify that they exist outside of the ad.
• Don't rent sight unseen. Get a tour of the apartment. Don't rent something based off of pictures alone and be especially wary of landlords that attempt to pressure you into paying money before you can see the apartment.
• Consider the market. Is the rent significantly lower than other comparable apartments in the area? That might be exciting, but it's a big red flag. Everything that potentially makes the property seem like a unicorn and too good to be true are reasons for caution.
• Don't use unsecure payment methods. If a landlord demands that you make payments in cryptocurrency, cash, or wire transfer, that's a major red flag, because there's no way to recover those payments if the property is a scam. Stick to check, credit, or ACH.
• Be cautious when providing personal information. Don't hand out your Social Security number, bank info, birthdate, or anything else before you've verified that the property is real and the landlord is on the up and up. 

Finding a good apartment is stressful enough without having to worry about scammers taking you for a ride. Don't let that stress keep you from being cautious, or else you could find yourself paying for an apartment that doesn't exist.

Worried about a possible eviction? MMI offers free eviction counseling to help you understand your rights as a renter and potentially find a solution that keeps you in your home.