How to protect yourself from home rental fraud/scams
It seems to be more prevalent than ever these days: would-be home renters responding to ads for homes, giving up sometimes thousands of dollars in “deposits” only to find that the whole thing is bogus.
As odd and concerning as this sounds, rental scams affect 6.4 percent of renters across the country and 4.7 percent of renters in Houston alone. Dallas tips the odds at 10.9 percent – the highest numbers of all metropolitan area in the United States.
When digging into why the numbers in Dallas are so high, it is suggested that the volume of new people moving to the city likely has an impact. A study by Apartment List suggests that renters who are unfamiliar with local markets are at higher risk of getting caught up in a scam, as are younger renters in the 18 to 29-year-old demographic.
All told, the study estimates that 5.2 renters in the United States lost money in rental scams in the past year. 31.4 percent of those individuals lost more than $1000. Do the math – this is serious business – underscoring the need for great caution when seeking out rental properties.
What is rental fraud?
Commonly, rental fraud is perpetrated by someone claiming to be an owner, a landlord or a property manager. The person will attempt to rent a home or apartment that is either non-existent, is not theirs to rent or is vastly different than the unit that was advertised.
Once the “agent” has you on the line, they will try to extract a deposit from you. In some cases, they may actually try to get you to pay the entire rent up-front. There is usually a sense of great urgency, such as being told that there are other people interested in the place or that you are going to miss out if you don’t pay up.
How to recognize a rental scam
The success of rental scams will only continue to breed more scammers. Knowing what to look out for will help keep you and your funds safe.
Here are some red flags you should look out for:
1. The listing does not have a photograph
2. The rent is “too good to be true”
3. The renter does not have a screening process or advertises no screening
And steps you can take to avoid being scammed:
· Always do a site visit. If it’s a scam, they will likely try to talk you out of this. Be insistent.
· Verify the ownership of the property using public records or in the case of an apartment, by contacting the rental office directly.
· If there are tenants in the unit, ask to speak with them.
· Deal with reputable property management companies.
· Never pay money in cash, via wire transfer or other electronic means.
· Do not supply confidential information without verifying all of the above.
· Make sure all items listed on the lease are in the unit and working before signing.
Looking for a trustworthy housing provider in Houston?
If you are looking for a rental home in Houston, Luxurway is at your service. We offer several well-appointed and conveniently located single-family homes for short or long-term rental. Call today for discounted long-term rates or browse our properties to learn more about us.