A lot has changed in the apartment landscape over the past few years which has led to a proliferation of rental scams. Wily crooks are craftier than ever before when it comes to tricking potential tenants into falling for their elaborate schemes.
Despite the considerable ability of these con artists, however, there are usually a few telltale signs that give their devious plans away. We’ve spotlighted three of the most common scams below in an effort to help renters sidestep any potential dangers.
Scammers try to rent victims a fictitious place or one that they have no affiliation with or authority over in order to extract a security deposit or other upfront costs from the victim.
The scam works best in areas where demand outstrips supply, because renters in those areas tend to be more desperate to find a place and desperation breeds carelessness. Some scammers go after low-end renters that might not be as educated about financial matters. There isn’t as much money to be had from that demo, though, so the most advanced scammers tend to focus on middle-income renters pondering a jump into the bottom tier of the luxury market, but unable to comfortably afford those units.
An apartment rental ad is placed on Craigslist, Trulia or a similar site that allows user-submitted posts. These ads might also be placed in local print publications that offer inexpensive (or free) classified listings. Typically, the ad boasts of a gorgeous rental at an amazing price. Savvy scammers are particularly skilled at making the description enticing and do their best to mimic actual real estate agents by using trendy buzzwords. The ad urges possible marks to call or email for more information and the hook is then set.
Once a scammer has gotten in contact with the victim, that’s when the game really begins. Amateur crooks usually play their hand far too soon and start sounding shady almost immediately by saying things like how they got stranded in Africa while on a missionary trip and that they want to unload the property quickly, which is why they are offering such a great price and need the security deposit (or first and/or last month’s rent) right away. These scams are pretty easy to spot and renters should cut off communication immediately if the correspondence begins that way.
More clever scammers are more of a challenge to identify. They will typically slow play the scam and be very engaging in the first couple of discussions, trying to make a connection with the victim. Eventually, however, they too will come up with some sort of excuse for why they can’t show you the property (because it’s not theirs or doesn’t exist) and will ask for a money order or check. They might even be willing to meet you in person outside the supposed property they are going to rent, but again they will request a money order or check or possibly cash for the upfront security deposit and/or first/last month’s rent.
Scammers do everything they possibly can to appeal to potential victims’ aspirations. Their goal is to make the property seem like a dream home and seduce the victim into thinking they simply must have the home. This can be tough to do since they aren’t able to actually show the home, but by sharing beautiful photos, explaining the property in detail and diverting attention at key moments, it’s possible. Once the victim is all-in on the home, then it becomes that much more difficult for them to walk away, even if they suspect something fishy.
There are two primary factors that make this type of scam more easily avoidable. The first is that the purported landlord can’t show the exact property. It’s not wise to rent a place that you (or at least a friend if you are out of town) can’t see beforehand. At the very least, it makes sense to scope out the property every so often to make sure that it has a rental sign out front, looks like the pictures, and is not being lived in by people unaffiliated with the fake landlord.
The second is that the payment is usually a wire transfer, check or cash. It is true that some old-school management companies still might not accept credit cards, but if they don’t, you should always do significant research on them before paying. Additionally, you should not ever mail money to someone without ever being able to meet them in person.
Residents, house-sitters or roommates that are moving out soon portray themselves as landlords in order to extract a security deposit or other upfront costs from the victim.
Perpetrators seek out younger and inexperienced renters for this scam, because the expectation is that they won’t know any better and won’t be able to catch on until it’s too late. Younger renters also tend to be more trusting.
Apartments within legitimate complexes are advertised as available at a discounted rate via the typical means (classifieds sites, local print publications, bulletin boards, posters, etc.). The contact person is not actually the landlord, though, but rather a resident, roommate or house-sitter that has access to the apartment. This enables the scammer to give a tour of the building/property and pass off the unit as officially available, when it’s actually not.
A few advanced swindlers might even go so far as to create a shadow web site designed to look like the actual apartment web site. This makes the apartment seem even more legitimate to prospective victims. Scammers will likely only go through this trouble for high-end luxury units, however.
The genius of this scam and what makes it so tricky is that the perpetrator can show the unit and really make it seem as though it is for lease. The scammer collects as much of a security deposit and/or upfront money (first/last month’s rent) as possible and then skips town. When the actual landlord goes to lease out the apartment and finds the victim, then they have no choice but to kick them out.
It’s most effective when the resident is nearing the end of the lease term, so they don’t have to keep paying rent themselves. If someone house-sitting is running the scam, then it could happen at any time, but it would need to be completed before the actual resident returns. The most nefarious form of the scam comes when a roommate does it without the other resident’s knowledge and then skips town, because the person still living there is left to deal with the mess.
By encouraging potential victims to come visit the unit and passing themselves off as legit leasing agents, scammers play on people’s trust factor, especially those that aren’t as familiar with renting.
Depending how far the scammer wants to take the ruse, they may also draft a fake lease and produce a copy of the keys to the unit. Once they have collected the deposit and any other upfront cash, then they disappear. Smart scammers that do this scam keep multiple identities. Otherwise they would be tracked down pretty easily once the victim tries to move in and the crime is uncovered.
While easier to pull off in some ways, this scam is quite difficult to get away with because it’s so easy to track down the perpetrator, unless they always paid in cash (which is becoming less and less accepted) or have fake IDs and payment accounts.
By performing due diligence and researching the property management company or landlord and demanding to speak to them directly, you can usually avoid this particular scam.
Landlords rent out areas of their property or units that are not legal and do not meet minimum housing standards.
Typically, this scheme is perpetrated by shady landlords or property owners that are aiming to exploit the fringes of the rental market for their own financial advantage. People seeking short-term leases and renters with poor credit or questionable renting history are especially vulnerable, because they often struggle to find apartments through traditional means.
The property owner’s primary objective is to generate interest in the unit. Some will use traditional classifieds advertising while others will take to social media or even hang posters outside places that attract short-term or disenfranchised renters. Units are marketed for either short-term use at a low price point or for longer-term use with no credit or background check required.
These “units” often end up being closets, garages, dilapidated guest houses, backyard tents or other atypical spots that are clearly unsafe and don’t satisfy basic housing regulations. Once they get someone interested, landlords will usually try and hide any major problems associated with the space and pretend it all meets legal standards.
Some landlords figure they’ll be able to find enough people desperate for cheap shelter that they don’t even bother to put on much of a front. The more money is at stake, however, the more work landlords put into portraying the space as hospitable and safe. Depending on how slick the scammer is, they might even try to have prospective renters meet supposed previous tenants in an effort to talk up the place.
They will always look to collect the first month’s rent upfront and some will ask for as much of a security deposit as they think the possible tenant might be able to afford. Threatening eviction and confiscation or property is another technique employed by these landlords to raise rates and squeeze tenants for more money.
Those involved in these types of scams are mostly preying on people that have few other options, so they are focused on recruiting renters that won’t put up a fuss or challenge their living conditions when repairs aren’t made or safety violations are ignored. They use fear and intimidation to scare tenants from outing them.
If the wrong person happens to discover one of these illegal units being on the market, then the landlord could face significant penalties and prosecution. Additionally, a resident being harmed while living in dangerous conditions could spur an investigation that would unravel the entire scheme.
If you are seeking a short-term rental, you are better off using a service such as Airbnb that has strict controls in place to prevent fraud or the renting of illegal or unsafe places. Motels or even hostels are also better options than just staying in some sketchy location and paying a shady landlord. If poor credit history or a bad rental background is forcing you to consider these types of illegal units, then you should seek help from a local public housing agency.
