6 Tips to Help Avoid Rental Scams

According to a 2018 survey by Apartment List, more than 5 million people have lost money from rental fraud and 43.1% of renters have encountered a listing they suspect is fraudulent. Although it is impossible to avoid encountering a fraudulent listing, following these tips can help ensure you don’t fall victim to a rental scammer.

Tip #1: Always see the apartment before renting.

Often, someone running a rental scam doesn’t have access to the property they are advertising, so they will push you to rent the unit without seeing it first.

Visiting a unit is also an important step in making sure the apartment fits what you are looking for. If you are moving to a new city and can’t visit the unit in person, ask if the property manager will take you on a video tour of the unit.

Tip #2: Don’t pay a security deposit or rent until you have signed a lease.

Application fees are commonly requested before signing a lease agreement, but the security deposit or first month of rent are not required before signing.

Be especially careful if a prospective property manager asks you to wire transfer money. There’s never a good reason to wire money to pay an application fee, security deposit or first month’s rent. And when you wire money, it’s the same as sending cash: you have no way to get it back.

Tip #3: If the price seems too good to be true, it might be.

If the unit is listed for substantially less than other comparable units in the area, that could be a sign that the listing is part of a rental scam.

Tip #4: Make sure you sign a complete lease.

Do not rent an apartment without signing a lease. When you get a copy of the lease, make sure to read it carefully and confirm key details. The agreement should always include these terms of the lease:

• Fees.
• Rent.
• Maintenance costs.

If you have questions or concerns about the language in the lease, ask.

Tip #5: Do not give a property manager extensive personal information until you want to move forward.

A property manager asking for personal information before you’ve seen a unit and stated that you would like to rent it is often a sign of a scammer stealing a potential renter’s identity. That said, providing extensive personal information, including your social security number, should be required before you are ready to move ahead with renting the unit.

Tip #6: Watch out for listings with grammatical and spelling errors.

If the rental listing has a lot of errors, this might be a red flag. Most property managers will take the time to proofread the listing before they publish it online.