Buyer Beware: 5 Rental Fraud Signs to Keep Your Eyes Peeled For

By Amelia Woolard

A brand-new smartphone from Apple listed for only 100 dollars. A free vacation to the Caribbean, no questions asked. Taco Tuesday honored every day of the week at your college’s cafeteria. Some things are just way too good to be true, but usually, we can easily pick apart which things are fraudulent versus a product of sheer luck—a.k.a. tacos for days!

But, sometimes we aren’t so lucky in drawing the line between fact and fiction. Rental fraud is a very real issue that can easily dupe even the most tech-savvy of renters. In fact, 5.2 million Americans have lost money from bad rental deals. What’s even more concerning than that? Renters aged 18-29 years old are most likely to experience rental fraud with most studies proving that most victims lose an excess of 1,000 dollars throughout the entire ordeal.

Given the data, it’s simple to see why rental fraud is a serious concern for college-aged renters. Here at uCribs, we’re devoted to making apartment renting for college students as seamless and worry-free as possible. That’s why we’ve rounded up a list of rental fraud warning signs to assist you during your apartment search. Check out the following red flags, and if the worst happens, remember to report any and all suspicious activity to the local police.

Red Flag #1: The Listing Has Missing or Vague Information and Watermarked Images.

As a rule of thumb, legitimate rental listings will be as clear in divulging pertinent information as possible. Think about it: landlords want to lease units easily and without any confusion. They’ll take extra steps to ensure that all images, amenity details, and any other must-have information – like an exact address and available tour dates – are clear.

On the other hand, fraudulent listings will be difficult to understand for any consumer. But, don’t worry, you’re not missing any information— it’s just not there! They also will not establish the exact location of the property or provide any firm details about the space itself.

For example, if the listing boasts an incredible, communal environment with ample amenity offerings, but it doesn’t clearly list what they are, that’s a red flag. Genuine property owners are well-versed in their property and all the features available to renters. In other words, there’s no vague verbiage in legit listings whatsoever.

Fraudulent listings will, however, feature images that are watermarked. If you notice watermarked images within the listing, that’s likely because the images were pulled from another website. The sad fact is the poster has no real ties to the rental supposedly up for grabs; therefore, you can safely assume that the listing was published by someone who doesn’t own the property being advertised—most likely, they have never even physically been to the location. So, if you see an ad that fits all the above criteria, you can assume that the poster is nothing more than a grade-A scammer.

Red Flag #2: The Listing Doesn’t Comply with Your Online Research.

We get it that you’re no business whiz— yet! But thanks to the Internet, it’s now possible for even the most amateur of renters to do a bit of online research when it comes to their next off-campus apartments. The goal here? To determine if that steal of a space is a true diamond in the rough or just downright fraudulent.

Luckily, it doesn’t take much to determine if the apartment you’ve been eyeing is the real deal. Gather as much information as you can about the rental in question and see what you can find when you enter the property name, address, or corresponding contact information into a search engine. Online reviews can also be helpful in investigating the legitimacy of a business, so be sure to check those out as well.

Additionally, consider using reverse image search functions to see if the space you’ve been fawning over is in another city or – worse – another country altogether. It’s not uncommon for scammers to use images of random buildings and market them as spaces for rent. We know it seems crazy, but these things really do happen, especially in the age of the Internet! Think of it as a Catfish, but instead of a person, it’s a place you want to live.

You’ll also want to find out if the price of this rental aligns with those of similar spaces on the market. Find an awesome rental for 500 dollars per month only to then realize that comparable units are a solid 300 dollars higher? Take that as a sign that the rental in question may be fraudulent or at the very least, possibly not up to current health and safety standards. Either way, it’s probably best to pass.

Red Flag #3: The Poster Isn’t Willing to Show You the Place In-Person.

Found a great place and want to see it ASAP? Congratulations! But, pump the brakes on any further action if you get the sense that the listing publisher isn’t ecstatic to give you a tour of the unit immediately. In fact, if the supposed landlord seems to be avoiding face-to-face interaction, consider that a solid red flag that you may be dealing with a scammer.

This also applies to anyone who claims that they can’t show you the rental because they’re out of town for an extended amount of time. If you get this response, odds are, you’re dealing with someone located in another country who has no plans to travel to you, much less show you a property that they don’t even own.

Additionally, you should be wary of any publishers who refuse to disclose the actual location of the rental. These scammers may claim that the rental is located in a super cool neighborhood, but when pressed for the actual numerical address, they disappear without a trace—most likely because they do not have a legitimate connection to the rental of your dreams.

This type of behavior can be the byproduct of two scary, but ultra-common fraud tactics known as the “bait and switch” and the “phantom rental.” The “bait and switch” involves listing a different property from the available rental in an attempt to collect a deposit for the more attractive unit. Obviously, the attractive unit is meant to bait you before the switch occurs, leaving you confused and frustrated. As for the “phantom rental,” it’s essentially the same as the prior tactic, except the unit doesn’t even exist. Because the name of the game is a quick buck, these scammers will wait for any poor, unsuspecting renter, who is desperate enough to lock down a lease. Don’t be that renter!

Red Flag #4: The “Landlord” Wants to Deal in Cash or Wire Transfers.

It’s 2018, and we’re pretty sure just about everyone has a checking account. For that reason, you should be especially wary of any landlords who insist you deal in cash or urge you to wire money to an undisclosed recipient.

As anyone who’s watched enough true crime television will tell you, cash or wire transfers are the preferred payment method for shady transactions because it cannot be traced like a credit card or check. You’re not merely picking up the tab for dinner in a scenario like this. Entering into a lease agreement is not only a big deal, but it’s also a big commitment, and you must treat it as such!

So, you should also be on high alert if the landlord insists you wire money. There’s no reason why a legitimate property owner would need you to electronically send funds for a safety deposit or first month’s rent. Legitimate landlords will never put you in a position where you must wire money electronically or else risk losing the apartment. Remember, fair and authentic landlords will want to make all transactions as easy and comfortable as possible!

As for paying in cash, it prevents you from leaving a paper trail of any rental-related transactions, which is very important if you’re considering purchasing a home of your own in the future. Scammers can easily cash out any funds you submit via wire transfer and disappear without a trace. If something suspicious happens with your check payment, however, you have a bank-authorized receipt of your dealings. This can help you recover stolen funds and assist the authorities in tracking down your scammer.

Red Flag #5: You’ve Been Asked to Disclose Personal Info Without Touring the Rental. 

If there’s one thing to remember about scammers, it’s that they move fast with no regard to traditional step-by-step procedures. In their minds, it makes perfect sense to send over a background check form or require your signature on a contract before you ever even see the rental in the first place.

Sadly, if you sign any documentation, you may assign yourself liability for any fraudulent rental payments. It’s all in the fine print, usually. Aside from this, you must be weary of filling out documents because they could potentially expose your personal information to the wrong set of people. It’s true that even the most basic renter applications require sensitive information such as your social security number and bank account number.

Of course, this type of information is fine to hand over to a trustworthy landlord or property management company, but when it begins to circulate through the grimy fingers of an unnamed party operating from who-knows-where, well… it’s not hard to see where so much could go wrong.

So, stick to this general rule of thumb: never submit any paperwork to anyone who you haven’t met face-to-face or anyone who you suspect may be behaving in an underhanded way. Go with your gut, people! Scammers do not need a wealth of information to open accounts in your name, or worse, hack into your current banking accounts and drain them as funds. You’re already stressed out enough as a college student, so why add identity theft to the ever-growing pile of adult responsibilities?

There’s nothing quite as awesome as renting your first apartment while in college. But, as with most things, you’ll need to pay attention to your business dealings in order to prevent rental fraud and the massive headaches, lost funds, and potential identity theft that can accompany it. Keep in mind our 5 tips, and above all, don’t forget to listen to your instincts. As much as it may suck to lose out on a dream apartment, staying smart will ensure that you land the perfect space without sacrificing more than your monthly rental payment and accompanying deposit!

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