With winter in the rearview mirror, you might be thinking about making a change of scenery. A newer, bigger space might be appealing. The BBB wants you to remember that if you are looking to rent, there may be scammers waiting to lure you into their traps.
Scammers use several different ways to scam unsuspecting victims. They create fake rental listings that can look real. They may find legitimate rental listings, copy them, and post their own contact information, so you end up reaching them instead of the actual property owner. Scammers also take listings of homes for sale and make them rental listings at an attractive rental price that is usually much lower than normal.
Social media is where many of these scams are happening. FTC statistics show that about half of those who reported rental scams to them first found the listing on Facebook. Craigslist was a distant second. And people ages 18-29 were three times more likely than other adults to report losing money in a rental scam.
Here are some tips that can help you tell if a rental listing is real or fake:
- Know the signs of a scam. You’ve likely found a rental scam if the owner is out of town, and you can’t see the unit in person before sending money. Also, if the alleged owner or property manager wants money through a bank transfer, Western Union, gift card, or cryptocurrency. This is not a regular payment practice with most legitimate businesses.
- Search for the rental address online. If you find the same property listed with different prices or contact information, it’s likely a scam. And if you find the home listed for sale instead of rent, that’s a red flag.
- Protect your information. Until you’ve agreed to rent a place, a landlord does not need your Social Security number, credit score, or other sensitive information.
- Do your homework. Ask yourself if the rent price offered is typical for that area. If the advertised rent is a lot cheaper, that could be a sign of a scam. If you are pressured to make a quick decision, walk away. Always make sure to read the entire rental agreement before signing.
- Report the bad actors. If you believe you have been victimized in a rental scam, report it to the Better Business Bureau’s Scam Tracker.
