If you are in the market for a rental, you need to take precautions to avoid getting scammed. That said, because most of the apartment search is typically done online, con artists have all the means to build an illusion while staying anonymous. It’s easy to get carried away with an opportunity for a new beginning, which is why we’ve put together this list of common rental scams and the ways to protect yourself. Read along to learn what to watch for while searching for rentals.
Contents of This Article:
- Most Common Rental Scams to Watch For
- How to Avoid Common Rental Scams
- Protect Yourself from Rental Scams with Property Management
Most Common Rental Scams to Watch For
Unfortunately, rental scams are easier to fall for as technology advances. As such, if you’re looking for a rental property, it’s crucial to be aware of common rental scams and how to spot them. Here’s what you should look out for as you search for rental housing.
- Pre-foreclosure Home
- Former Tenant Scam
- Stolen Listings
- Impostor Property Managers
- Vacant Homes
Pre-foreclosure Homes
Homeowners who fail to pay their mortgages are on the verge of losing their homes. Generally, in a desperate attempt to better their financial situation, they move out and put the house up for rent.
Then, tenants move in only to find out that they have to vacate the property in a few months. Although tenants get to live in the property for a short period of time, the expenses and stress regarding moving in and out are irreplaceable. Additionally, it can be hard to get your security deposit back.
Former Tenant Scam
Former Tenant ScamSuppose a tenant who has just moved out of the rental (or is planning to) sees an opportunity to make money by sub-renting behind the landlord’s back. In this case, a con artist can create online listings for the property and lure in potential tenants with low pricing.
Then, they can meet with tenants and even give them a tour of the property, accessing it with a duplicate key. Finally, after the tenant signs the “lease” and pays the deposit and the first month of rent, the “landlord” leaves the city.
Unsuspecting tenants then move in and find themselves in trouble with the actual landlord. In some cases, con artists manage to sub-rent the property to several renters, so the fraud is discovered when they meet while attempting to move in.
Stolen Listings
In a stolen listing, a scammer finds a legitimate rental property listing and duplicates it posing as a real property owner, but provides his own contact information. Then, once you contact them, you cannot see the property.
A scammer will then avoid meeting with the potential tenant in person using such excuses as he’s overseas, on a business trip, sick, etc. However, he requests the deposit and the first month’s rent before he can mail you the keys. Needless to say, after sending in the money, you never hear back.
Impostor property managers are a group of con artists that set up a temporary office and post ads in local newspapers and online advertising properties owned or managed by others. They will then urge would-be tenants to leave a “holding deposit” to reserve the house.
Of course, eventually, you’ll find out that the company didn’t represent the property owner and wasn’t authorized to act on his behalf. By that time, the office and the money are gone. Even if it isn’t, there is typically no paper trail that will require the fake company to pay the money back.
Vacant Homes
Vacant home scams are some of the worst to fall into. In this case, a scammer finds an empty home, breaks in, and changes the locks. Then, they list the house for rent, answer inquiries, and give fake property tours.
Unfortunately, detecting this type of rental scam can be hard, so most unsuspecting tenants move in after paying rent and deposit. Then, everything goes smoothly until the real homeowners return, and you’re left with a huge misunderstanding.
How to Avoid Common Rental Scams
It can be easy to fall for a rental property scam. After all, if you’re desperately looking for a rental home, some tenants will do anything to make a deal work. However, if you suspect a scammer, there are a few ways to avoid falling into their trap. Here’s what you can do:
- Check Online Property Records
- Meet with Property Owners in Person
- Research Property Managers
Check Online Property Records
If you suspect you’re looking at a rental listing for a potentially foreclosed home, you can always check your state’s Land Records and Deeds Directory. Then, you can see the status of the property and see if it’s being foreclosed or not.
If you suspect the person listing the property isn’t the actual owner, it’s always best to set up a meeting with them. On the other hand, if a property manager lists the rental, you’ll want to ensure they have permission from the owner to act on their behalf. To do this, you can simply search property records or ask for proof of ownership.
Meet with Property Owners in Person
Meet with Property Owners in PersonIf you’re taking a property tour, make sure you do it in person with the landlord or property manager. To feel safer and more confident about meeting for a tour, check other listing sites to see if the property and contact information are the same throughout all listings.
If a landlord or property manager doesn’t want to meet in person, consider that a big red flag. That said, if you suspect that someone is posing as a landlord, talk with surrounding neighbors. Ask them if they know the owner and what he’s like, or even show the picture of your “landlord” and see if they recognize him.
Research Property Managers
If you’re renting through a local property management company, it’s best to request proof of explicit permission to act on the landlord’s behalf. Additionally, you’ll want to visit the company’s website and determine whether it’s professional or thrown together quickly. This can help you determine if they’re a legitimate property management company or not.
Checking online reviews is another way to research property managers in Baltimore. For instance, look elsewhere if they have little to no reviews or extremely poor reviews. However, if they have hundreds of positive reviews from legitimate tenants, you can feel more comfortable working with them.
As you can see, these scams have a few things in common. Overall, beware of these red flags:
- The listed rent is much lower than the price of other rentals in the same area.
- A landlord is refusing or unable to meet in person.
- A landlord requests to wire money upfront before showing you the house, handing in the key, or signing the lease.
- There is no means of contact besides an email, and the messages from the landlord are full of grammatical mistakes and things that don’t add up.
Protect Yourself from Rental Scams with Property Management
Knowing about such scams is the first step to avoiding getting involved in one. Remember, if you are looking for a place to rent, you can always rely on Bay Property Management Group, your Baltimore property managers with an excellent reputation. In addition, we list several available properties for you to check out at any time.
Need More Advice? contact BMG today!
Additionally, if you run a rental business and need help listing properties, Bay Property Management Group can help with that, too. We offer comprehensive rental management services to ensure your business runs smoothly, 24/7. Contact BMG today if you need rental management in Baltimore, Philadelphia, Northern Virginia, or Washington, DC.
