When you’re excited to move into the perfect apartment or need a new home fast, you may overlook key red flags about a potential apartment or landlord. Learn more about apartment rental scams and how to avoid them before you sign your next lease.
Phantom Rentals
You see an apartment ad that features amazing views, low rent and large closets. The problem is that the landlord wants the deposit and first month’s rent right away. You want the apartment, so you send the money. Unfortunately, the landlord conveniently disappears after your check is cashed, and you’re out the money and the home. Chances are high that the apartment wasn’t even real and you’ve become the victim of a phantom rental scam.
Multiple Rentals
After you find and tour a great apartment, you decide to pay the deposit and first month’s rent. However, several other renters have the same idea. The landlord takes your money and runs, leaving you to deal with the aftermath of a multiple rental scam.
Renting for the Owner
You find an apartment you like and ask for a tour. The person who shows you around claims to have the landlord’s permission to rent the apartment. You hand over the deposit and rent, but the actually apartment owner has no clue about the transaction, the tour guide skips town and you become the victim of a renting for the owner scam.
How to Protect Yourself From Rental Scams
Avoid these and other creative rental scams when you take these steps.
- Search for the property online. In a few minutes, discover if the apartment is listed on multiple sites and verify the legitimacy of the apartment and the seller.
- Never wire money. Legitimate landlords ask for a check.
- Sign a lease before you send payment. It’s a legal document that ensures the landlord is legally able to rent to you and that you are the legal tenant.
- Meet the landlord. Instead of trusting the contact person, insist on meeting the actual landlord. If he or she lives far away and refuses to contact you, pass on the deal.
- Don’t share personal information. There’s never a reason for a potential landlord to know your social security, bank account or credit card numbers.
- Avoid doing business with anyone who claims to be affiliated with Zillow. It’s a legitimate online real estate database with no involvement in the actual apartment rental process.
- Report any potential scammers to your local police and the Federal Trade Commission.
Apartment hunting can be stressful, but take your time and avoid these scams. Once you do find your next home, contact your insurance agent for renter’s insurance that protects you and your belongings.
