Renting an apartment can be challenging, especially here in the Bay Area where housing is expensive. Unfortunately, the experience of finding a rental is made even more difficult by the presence of rental scams. As with many other aspects of life, scammers have found ways to part unsuspecting renters from their money. We’re here to educate you about common rental scams and provide tips on how to protect yourself.
There are different types of rental scams. Often, these scams involve properties being listed for rent on the internet by scammers who do not own the properties or don’t have the authority to rent the property out. Scammers often list properties on websites like Zillow, Craigslist, or Facebook. This scam can take different forms.
- Knockoff listings: Beware of knockoff rental listings on websites like Craigslist. Scammers can copy and paste the information from a legitimate rental listing and repost that information under a fake listing, often offered for a super low price. The scammer’s goal is to steal your first and last month’s rent and deposit.
- Illegal sublets: With this scam, the scammer shows the property but doesn’t have the authority to rent it out. Again, with this scam, the scammer wants to steal your first and last month’s rent and your deposit.
- Ghost rentals: A ghost rental is a property that doesn’t exist. The scammers lure the victim to pay money in exchange for promises of low rent and great amenities. Typically, the scammers will pressure the victim to send money quick in order to hold the property.
These scammers will forego the typical formalities of renting a property, such as the application or credit check. The renter may show up to the scheduled walk through of the property or to go pick up the key only to realize they’ve been scammed. The supposed landlord or property manager is a no-show and/or the property doesn’t exist, and the renter has lost everything they’ve paid. Often, the scammers ask that the money be sent via cash, wire transfer, or online transfer through a platform such as Pay Pal, Zelle, or Venmo. Note that similar scams also occur with vacation rentals, so be cautious in renting a property for a vacation.
Warning Signs
There are numerous warning signs of a rental scam. Learn to recognize these signs so you can protect yourself. Common warning signs include:
- Rental listings that contain grammatical errors or strange wording.
- The same listing is posted on another website or under a different name.
- Excuses are made about why you cannot meet the landlord at the property to view the unit in person before you send the first or last month’s rent or the deposit.
- No face to face meetings with the person renting out the property. The landlord may claim to be out of town, out of the country, and tell you that this why you must do everything online or over the phone.
- The person renting out the property wants a cash deal or wants you to send money via wire transfer. Scammers favor these methods of payment because payments sent as cash or via wire transfer are harder to trace and recover.
- Pressure to act quickly, including warnings that other people are interested.
- If rent is far below market value for this property, this is a huge red flag.
Tips for Avoiding Rental Scams
The good news is that you can protect yourself by learning to spot rental scams. Often, money sent to scammers is impossible to recover, making it imperative that we learn to stop scams before they happen. Learn the following tips so you can protect yourself:
- Conduct a search of who actually owns a property at the Contra Costa County Recorder’s
- Never pay cash in advance. Always tour the property, meet the landlord, and sign a lease before sending any payments.
- Pay by personal check or cashier’s check because these are easier to trace than wire transfers or cash payments.
- Never rush: the more you are pressured to act quickly, the more risk there is of a scam or fraud.
- Have in person meetings with the landlord or property manager so that you know who you are dealing with. Get a business card.
Remember, if rent is too low and something seems too good to be true, it probably is! If you are not a renter but you have friends or family members who are seeking a rental, share this information with them so they can protect themselves.
If you’re scammed, call Contra Costa Senior Legal Services at (925) 609-7900 for assistance. You can also report the fraud to the Contra Costa County District Attorney’s Real Estate Fraud Unit.