Rental Scam: HOW it Works and Ways to Prevent it

Imagine scrolling through listings. You find the perfect apartment you need for job relocation. It’s affordable, newly renovated, and has great amenities. It seems too good to be true… BECAUSE IT IS.

Rental scams are schemes where fraudsters pose as legitimate landlords to trick renters into paying for properties in advance. This scam is avoidable by always doing research, requesting in-person meetings, and not paying upfront.

Rental scams are a huge problem – and they’re more common than you think. If you’re not careful, you might become the next victim.

To put it simply, a rental scam is where a fraudster tricks people into paying in advance for non-existent rental properties.

Scammers love to target people who are in a rush to rent or are looking for good deals.

One victim of this scam is Craig Spokes. He was tricked into paying upfront rent of £20,000 ($25,200) to a fake landlord.

Craig was able to move in. But after three weeks, the real landlord kicked him out, leaving all his stuff on the street.

It turns out, Samy Daim, the scammer, was the first renter of the property.

Daim pretended to be the landlord and gave Craig the keys.

Craig said that falling for the scam was embarrassing. He said there were days he couldn’t go outside.

Craig also expressed disappointment that his bank couldn't refund the money.

Craig is not alone.

In 2022, there were over 11,700 victims of rental scams, with a total loss of $396 million.

Plus, in 2023, there were over 9,500 reports of real estate fraud, resulting in financial loss of $145 million.

Here’s a detailed process of the rental scam:

• Step No. 1 - Research: Scammers collect personal data of their targets (e.g. contact number, income level, and social media posts indicating urgency to move). They’ll get these details through public records, social media, and data brokers.

• Step No. 2 - Fake Listing: Scammers will post rental properties, using stolen photos and offering low prices.

• Step No. 3 - The Pitch: Scammers will claim that the offer is only available for a limited time or that many people are interested, urging you to send a deposit quickly.

• Step No. 4 - The Out-of-Town Lie: If you ask to meet in person or visit the property, the fake landlord will claim that they’re out of town then promise that they can send the key via mail after payment.

• Step No. 5 - Request for Deposit: Scammers will insist on making deposits, using non-secure methods like wire transfer, gift cards, and cryptocurrency.

• Step No. 6 - The Disappearance: After receiving your payment, scammers will disappear quickly, leaving victims dealing with financial loss.

Here are some things you can do to avoid becoming a victim of a rental scam:

• Research: Always verify the landlord and the property. Look for reviews and licensing. You can also do reverse image search, using the listing photos to see if the property is being used for multiple sites with different locations.
  
• Meet: Ask to meet in person or visit the property. If they refuse, then it’s likely a scam.
  
• Don’t Pay Upfront: Never pay before seeing the property or getting the lease.
  
• Beware: There are warning signs of a rental which include unusually low rent rates, urgency, and upfront fees.

Overall, rental scams are frustrating. Still, they’re avoidable by being aware and vigilant.

Remember: If a deal seems too good to be true, then it is.

Always do your research on the landlord and property before making a deposit.

Stay safe, and scam-free house hunting!

How to report a rental scammer?

You can report a rental scammer by first gathering all necessary documentation (e.g. screenshots of messages, payment receipts, and online listings). Then, contact your local police or the platform where the listing was posted. File a report, and provide your documentation.

What is the safest way to pay my landlord?

The best way to pay your landlord is using verifiable and trackable methods like certified checks, money orders, and online payment platforms like Venmo and PayPal.

How to spot a Craigslist scammer?

You can tell a Craigslist scammer by looking at several red flags, which include: 1) too-good-to-be-true or unusually low rental rates, 2) poor grammar on listings, and 3) generic or unclear product descriptions.