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(From the Financial Literacy Blog) – Finding an apartment that meets all of someone’s needs is no easy task. There can be barriers that make it difficult for people to settle on a rental, such as it being too far away from public transportation services, not allowing pets, or that it’s simply too expensive. However, even when people do find an apartment that meets all their needs, it can still be difficult to reach signing the rental lease and moving in. This is because hopeful tenants are competing for apartments. There is a high demand for rentals, with limited availability—resulting in a competitive market.
Scammers are taking advantage of the market by targeting hopeful renters with rental scams. This is a type of imposter scam where a fraudster pretends to be a landlord, property manager, or a real estate agent in an attempt to steal money from individuals hoping to rent an apartment. For people in the market for a new place to call home, here are some red flags to look out for:
Pressure to Sign a Lease Immediately
Legitimate landlords, property managers, or rental agents won’t pressure hopeful renters to act quickly. Urgency is a warning sign of a scam. Scammers want people to act quickly and make payments without taking the time to think the situation through.
The Listing Is Low Quality
If the apartment listing has grammatical errors or odd formatting, that could be a sign of a scam. Serious landlords or property managers will take the time to write a decent listing and proofread it, too. People should also look out for low quality photos. If the quality is low and the listing doesn’t have multiple photos from different perspectives in the apartment, renters should be suspicious. A scammer can easily search for a photo of a random apartment online and make a listing with it.
Unusual Payment Method Is Required
If an individual is asked to send a payment via a wire transfer, prepaid card, or cryptocurrency, they should not do it. These methods are nearly untraceable, and once the money is sent, it’s usually gone for good. A legitimate landlord will not ask people to send those types of payments, especially if the hopeful renter hasn’t toured the property or signed a lease.
Not Available for a Showing
If the agency or landlord who listed the rental says they’re not available to meet in person, that’s a red flag of a scam. A legitimate landlord will make sure they can meet the renter. If the renter does meet with the landlord, however, it’s important they’re also able to see the property before signing a lease or sending any money. If the landlord suggests simply walking around the outside of the apartment instead of going in, that’s another red flag. In most cases of rental scams, the person advertising the apartment won’t have access to the property. If the potential renter is not able to enter, they should leave and stop pursuing that apartment.
It Seems Too Good to Be True
If the apartment’s monthly price is far less than other rentals in the surrounding area, people should be suspicious. Whenever a price looks too good to be true, it probably is.
The Bottom Line
People can avoid rental scams by verifying the address to make sure the property exists, always requesting a tour, speaking and meeting with the property owner, being wary of unusual payment requests, and trusting their instincts. If something seems off, they should research the apartment and landlord thoroughly. By keeping an eye out for the warning signs mentioned above, people can navigate the rental market safe and securely—ensuring their next rental experience is a positive one.