There is an adage that states if something sounds too good to be true, it probably is. Anyone searching for an apartment should be aware of the common scams in both online and offline rental listings. Here are some of the potential warning signs that may indicate fraud.
The Absent Owner
Be wary if an owner of a rental property claims to be out of the state or possibly living in another country. The scammer will use this excuse as the reason they cannot meet the prospective renter in person. A legitimate landlord will want to meet the renter in person or have the property manager meet with prospective residents.
Unusual Timing
Renters should take notice of the time of day that they receive communication from the landlord or management company. Most companies do not conduct business at odd hours, so this can be an indication that you’re dealing with someone who is potentially operating a scam. Finding grammar or spelling errors during communication is another potential indicator of fraud.
Too Much, Too Soon
A scammer may immediately ask for information like social security numbers or bank account information. Renters should never give out sensitive personal information to anyone without ensuring it is a legal business transaction.
Beware of Wire Transfers
One of the most obvious signs of a scam is when the landlord asks for money to be sent via a wire transfer service. Prospective renters are advised not to provide payment of any amount until they have viewed the property and met with the landlord or property manager. When a payment is necessary and legitimate, prospective renters should only use a check or credit card.
Take Precautions
There are steps one can take to help ensure that they are dealing with legitimate real estate agents and landlords.
Renters should conduct online research to check out any aspect of the proposed transaction, as well as the property address and the agent's/landlord's names.
Visit sites such as Renthop.com to check for reviews of an agent or landlord. If there are no reviews or the reviews are overwhelmingly negative, it is advisable to cease doing any business with the party.
Renters should only work with licensed real estate agents, who are required to carry their license when they are working. Prospective renters may also confirm an agent's place of employment by calling the agency or company that the agent claims to represent. You can even search the New York State's licensing system to ensure that they're properly licensed by the state.
Prospective renters should get referrals from family, friends, or co-workers concerning agents, landlords, and apartment buildings.
Take Action
If a prospective renter falls victim to a scam, they should file a report immediately with the Federal Trade Commission. If money has been wired, they should immediately contact the wire service to see if the transaction can be canceled.
Written by Amber James