5 Red Flags To Watch Out For In Rental Listings

Finding the perfect rental apartment or house can feel like a challenge, especially in competitive housing markets. With so many options to sort through online, it's easy for scammers to take advantage of those in need of a new place. Rental scams have become increasingly common in recent years as more transactions move online. While exciting to find what seems like the perfect low-cost rental, you need to be extra careful to avoid getting ripped off. Here are some of the most common rental scams to watch out for as you search for your next home.

Phantom Rentals

One of the most common rental scams involves listings for properties that don't actually exist or aren't actually available to rent. In these "phantom rental" scams, the perpetrator will create believable listings using photos of real properties they find online. They'll provide details like rent costs, lease terms, and how to apply. But when you try to view the property or submit an application, you'll find the listing is completely fabricated. It's a way for scammers to collect application fees and deposits from multiple victims without ever having to provide a real rental.

Be wary of any listings that don't allow you to physically see the interior before applying. Do a reverse image search of listing photos to check if they correspond to real properties elsewhere. Consider searching public records to verify the owner matches the landlord's name being used. Be skeptical of deals that seem too good to be true, like luxurious rentals that are wildly below market rate. Phantom rentals prey on your sense of urgency to secure housing, so don't rush into anything without thorough vetting.

Read more: How to Spot Rental Property Scams?

Advance Fee Fraud

Another common scheme involves advance fee fraud, where scammers ask for payment of fraudulent fees upfront before you can view or rent the property. This could involve things like application, administrative, or deposit fees before you've even seen the inside. Be very wary of any landlord or agent who asks for money prior to handing over keys or signing a lease agreement. According to the Federal Trade Commission, you should never have to pay an upfront fee to simply apply for an apartment or submit paperwork for a rental home.

Any landlords or brokers operating legitimately will have you sign paperwork, pay security deposits, and handle fees only after paperwork is signed and keys are handed over to confirm possession. Avoid wiring or sending cash, money orders, or gift cards for bogus fees before getting the clear opportunity to see a rental in person. Major red flags emerge if a landlord pressures you to pay non-refundable fees sight-unseen, without proper documentation or a legal lease agreement in hand.

Fictitious Landlords

Another tactic involves a scammer posing as the landlord or property manager, often using a name and details taken from legitimate listings elsewhere. They'll communicate by phone or email, potentially providing property photos and paperwork to make their identity seem real. But they have no actual connection to the property being discussed. The goal is to collect application fees or deposits from victims without any intent to rent the property described.

Research any names and contact details provided carefully. Do internet searches to see if the supposed landlord/manager is associated with the address in question. Ask for their business license or credentials. Consider doing a reverse phone lookup to check if the numbers align with the identity claimed. Request to communicate mainly through the listing platform for better protection. Fictitious profiles usually struggle to provide verification in person or with proper documentation of property ownership/management.

Subletting Scams

College students and short-term renters need to watch for sublet scams, where someone lists a rental they don't actually have permission to sublet. They'll take payments for a room or apartment they don't control, disappearing once funds are received. Another approach is for scammers to sublet units they don't inhabit at reduced rates, collecting multiple payments but never providing keys to victims.

The safest approach is dealing directly with leaseholders, property managers, or owners when subletting. Be wary of any subletters trying to rent units sight-unseen or handle payment details away from the official platform. Cross-check addresses on sublet ads against property listings to verify the same landlord/manager is involved. Request to inspect units in person before paying any deposits to confirmed subletters. Thorough vetting helps weed out unauthorized subletters intending to defraud short-term renters.

Rental Scams by Wire Transfer

Another red flag lies in landlords insisting wire transfers or prepaid debit/gift cards are the only approved forms of payment. While sometimes done internationally, rental transactions within the same country generally accept credit cards, checks, cashier's checks or money orders for legitimacy and protection. Such traceable means leave paper trails if issues arise. Wire transfers, on the other hand, allow money to disappear instantaneously into untraceable accounts.

Any landlord requiring wire transfers upfront, for fees or full rent payments from unfamiliar tenants, likely has illicit intentions. Even after meeting or touring units, proceed cautiously if asked to handle payments through unfamiliar or "preferred" systems lacking buyer safeguards. Most legitimate operations take precautions against fraud themselves by following standard industry practices for payment collecting. Insist on using conventional, documented methods like trusted third parties if concerns emerge about a landlord's requested payment approach.

Rental Listings Requesting Personal Information

While basic identity verification makes sense during the application process, be wary of landlords asking unusually detailed personal questions very early without clear reason. This could involve Social Security numbers, copies of IDs, banking information, earnings statements, and other sensitive details not rationally needed for an initial screening. Providing such data leaves you vulnerable if interacting with a scammer.

Legitimate rental transactions focus inquiries appropriately based on application stage. Early communications serving no clear screening purpose raise red flags if demanding an inordinate amount of sensitive identity or financial specifics. Trust your judgment if pressed for more than basic contact and background details before moving forward in rental protocols. Compromising personal information remains unwise without transparent, legitimate cause from landlords or management companies.

Bait and Switch Schemes

Some scammers get victims to view actual rental properties, then try bait and switch tactics by insisting on higher rents or deposits than initially advertised. To seem trustworthy, fraudsters show real units but intend to capitalize on any commitment made by pressuring for more money on the spot. Thoroughly discuss all terms upfront, get any verbal agreements in writing reviewed by both parties to match initial conditions, and stand your ground on previously approved paperwork if terms arbitrarily change during showings or applications.

Be skeptical if ever pressured into on-the-spot decisions, and do not feel afraid to walk away from shady dealings that begin straying from the details that attracted your application initially. Every aspect should remain consistent with original ads and communications to avoid manipulation by fraudulent landlords aiming to profit from switches made amid visitations and viewings. Zero tolerance exists for deviating terms not mutually agreed upon from the get-go.

Verifying Landlords and Properties

Luckily, some research and verification steps help weed out the scam listings from real rentals. Look into contact information and addresses provided for rental properties to confirm legitimacy and property ownership. Search registries and public records to match landlord names to properties. Consider driving by addresses to verify locations exist as advertised before viewing.

Request landlord contact happens solely through the original listing platform when first inquiring. Search signs outside units for managing company details to align with information given. Request to tour properties in person rather than sight-unseen. Ask questions to feel comfortable with landlord identities and their knowledge about listed properties. Conducting thorough identity and ownership verifications takes some effort but protects against falling prey to phony listings or frauds.

Watching out for deceptive listings and practices requires due diligence on your part when seeking new housing. But taking research steps like verifying identities, double-checking details, and trusting your instincts help sidestep common rental scams. With safeguards in place, rental searches remain viable for identifying legitimate opportunities to make your next home a scam-free experience. Due diligence upfront saves much trouble and wasted funds down the road.