As the new year begins, many will once again be looking to find a new place to live as their leases come to a close. Whether you’re searching for a new rental or going to buy a new home, be on the lookout for these scams.
Research from the Apartment List has found that 5.2 million renters in the United States have lost money due to rental fraud, falling victim to scammers who use fake listings or fraudulent practices to steal money or personal information from those seeking secure housing.
So, what should renters be on the lookout for?
According to Experian, there are a few warning signs you can be aware of to spot scams before they take your lunch money.
If you find yourself viewing a listing that has photos that are “too good to be true” or is full of errors, Experian says it’s best to be cautious, as someone may be trying to take advantage of you through a fake listing.
To be sure you’re not being scammed, Experian says to perform a “reverse image search” online to see if the photos show up anywhere else. Also, be careful to read through listings with a close eye, ensuring there aren’t any misspellings that raise a red flag.
The Federal Trade Commission warns that prospective renters should never “send payment for a property you’ve never seen, or to a person you’ve never met in person.” On top of that, the FTC warns not to send money by wire transfer, gift card, or cryptocurrency, as it’s the same as sending cash.
“Once it’s gone, you probably can’t get it back. If you can’t see the apartment or sign a lease before you pay, keep looking,” the FTC warns.
If a landlord isn’t asking you to provide a credit check or verify your income, you may not be working with a reputable landlord or management company, as most have policies that require such access before leasing.
It’s also important to have a paper trail, ensuring that what you agree to is in writing so as to best protect yourself. Anything you agree to with a landlord should be kept in writing to be verifiable later.
So, what should you do if you think you are being scammed? The first step would be to contact your bank to ensure you pause or cancel any transactions related to the scam. Next, victims should contact their local police, the FBI, or the FTCto file a complaint.
If you’ve given out personal or financial information, you can set up a fraud alert on your credit reports to get notified if someone tries to apply for credit under your name.
Other potentially fraudulent activity to be on the lookout for includes pressure from the landlord to lease right away, rent being abnormally cheap, and pressure to give money upfront.