Are you currently looking to rent a home or apartment? Then you need to protect yourself from rental fraud.
Rental scams are common. The Federal Trade Commission reported over 10,000 cases in 2023 alone. Fortunately, they are avoidable. By following a handful of practical, common-sense steps, you can protect yourself and avoid costly mistakes.
- Always see the apartment before renting. Fraudsters are known to post phony ads using real pictures of properties they don’t actually own. They will push you to rent the unit, and to send your personal information to them, without seeing the apartment first. Visiting a unit is not only a way to avoid this scam–it also has the benefit of helping you ensure the apartment fits what you are looking for. If you are moving to a new city and can’t visit in person, ask if the property manager will take you on a video tour of the unit.
- Don’t pay rent or a security deposit until you have signed a lease. Application fees are commonly requested before signing a lease agreement, but the security deposit or first month of rent are not required before signing. Be especially careful if a prospective property manager asks you to wire transfer money. There’s never a good reason to wire money to pay an application fee, security deposit or first month’s rent. And when you wire money, it’s the same as sending cash: you have no way to get it back.
- If the price seems too good to be true, it might be. If the unit is listed for substantially less than other comparable units in the area, that could be a sign that the listing is part of a rental scam.
- Make sure you sign a complete lease. Do not rent an apartment without signing a lease. When you get a copy of the lease, make sure to read it carefully and confirm key details. The agreement should always include these terms:
- Applicable fees
- Monthly rent cost
- Maintenance costs
If you have questions or concerns about the language in the lease, ask.
- Do not give a property manager extensive personal information until you want to move forward. A property manager asking for personal information before you’ve seen a unit or before you’ve stated that you would like to rent the unit is often a sign of a scammer looking to steal your identity. That said, providing personal information, including your social security number, should be required before you are ready to move ahead with renting the unit.
- Watch out for listings with grammatical and spelling errors. If the rental listing has a lot of errors, this might be a red flag. Most property managers will take the time to proofread the listing before they publish it online.
For clear guidance and tools to help you stay one step ahead of scammers, access Freddie Mac’s My Home resources about fraud prevention at https://myhome.freddiemac.com.
The search to find a place to live can be stressful, especially if you don’t know what to expect. Understanding the rental process can help you avoid fraud and find something that fits your budget and lifestyle. — Statepoint
