How to spot a rental scam
Advances in technology are making it easier than ever for fraudsters to deceive unsuspecting renters.
Here’s an example of how these scams can sometimes work: scammers find a vacant home listed for sale online, then pose as potential buyers and contact the selling agent to get the door code so they can view the property.
Once they have access, they list the property for rent. Because they have the door code, scammers can even offer potential renters access to the home.
Then, they create a fake lease, collect a deposit, and take off with the money. By the time the actual homeowners realize what is going on, there is no recourse for the renters.
"You have to be your own detective,” said WSB-TV 2 consumer advisor Clark Howard. “Because once it happens to you, there is no easy way out… once the money has left your hands… the money has made a one-way trip.”
Howard claims these types of scams first started popping up about 15 years ago. He suggests checking property records online to make sure you’re paying the rightful owner.
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Read MoreHow to protect yourself from rental scams
The current state of the housing market — from inflation to limited availability — has resulted in a surge of fraudulent activity.
The national competitivity score stands at nearly 74 out of 100, with vacant units finding occupants within an average of 41 days, according to data from RentCafe.
Considering this climate, rental scams tend to work because they often appear legitimate — especially in a competitive market where renters are eager to find an affordable home. However, there are steps you can take to protect yourself from falling for one.
First, always insist on meeting the landlord or property manager in person, and never send any money — including application fees or deposits — before viewing the property. This will protect you from less sophisticated rental scams.
Before you sign a lease, search the address on real estate listing websites. Scammers often target vacant homes that are for sale, as it’s easier for them to gain access and steal photos. If the property you’re interested in is listed as for sale, it could be a red flag.
Next, check public property records to see who owns the residence. These are often available online through city or county websites.
If the name on the records doesn’t match the person you've been in contact with, ask to speak with the owner. If you do sign a lease, use a verified payment method, such as a check or ACH transfer. These methods may offer some recourse if the deal turns out to be a scam.
Most importantly, trust your instincts. If the rental price seems too good to be true, it likely is. Scammers often offer rental properties at below-market rates to attract renters willing to overlook other red flags.
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