How to Recognize and Avoid Rental Scams

Key Takeaways

• Scammers often copy real rental ads and pose as landlords.
• Watch for red flags like unusually low rent or unavailable landlords.
• Tenants may blame you if your property is used in a scam.
• Partnering with a property manager can help protect your listings.

The internet has been a game changer for many businesses, including rental property owners. You can now reach many prospective tenant eyeballs with a single online listing.

However, this hasn’t been without challenges. Online scammers are increasingly making targeted attempts to rip off unsuspecting renters using rental ads.

They are posing as the landlord and requesting advance payments from prospective tenants. And before you know it, you and your rental property are getting a bad reputation online.

As a landlord, having your property used in a scam is guaranteed to ruin your reputation and credibility. In this blog, American Dream Realty And Management will share with you proven tips on how to recognize and avoid rental scams.\

What does a Rental Scam Look Like?

The Scammer Uses Your Photos in Property Advertisement

A scammer will scour the internet looking for rental ads that they can use to con unsuspecting tenants. Typically, they will find these on public online platforms like social media and online listing platforms.

They will then copy some of the information on the rental ad, including the headline, photos, and summary description. Generally, they will change the contact information on the ad to theirs.

The scammer will upload the ad as their own elsewhere and wait for prospective tenants to make contact. This can be through email, text, or phone call, depending on the contact details they provide on the ad.

The Scammer Requests Payment from Unsuspecting Tenants

After an unsuspecting renter establishes contact with the scammer, they will usually request a payment. This will usually ask it in the form of a deposit to secure the unit.

If the scammer is successful, they will then block the renter and stop any further contact. It’s at this point that the renter will realize that they have just fallen victim to a scam.

The Renter realizes that they have been scammed

However, not all such renters may realize that they have been scammed. They may then choose to show up at the address on the rental ad. And it’s after doing so that they will realize that they have just been scammed.

Of course, the renter will be upset by the incident. They may even assume that you have been behind it. The renter may call the police on you and/or take the matter to social media to forewarn other prospective tenants.

This can severely impact your reputation and credibility, even if you had nothing to do with it.

What are the Warning Signs of an Online Scam?

Online scams often have certain telltale signs that prospective tenants should know about.

They include the following:

• The rent amount on the rental ad is significantly less than what similar rentals in the area are charging. If, for example, comparable properties in the area are charging, say, $1,800; an online ad that shows, say, $1,000 should be a red flag.
• The ‘landlord’ isn’t available to show the property to prospective tenants.
• The ‘landlord’ is requesting prospective tenants to put down a deposit to secure the property.
• The ‘landlord’ is asking for prospective tenants’ personal or financial information.

How Can a Landlord Protect Their Property Against Online Scammers?

Admittedly, some landlords may be more prone to online scams than others. This is especially true for out-of-state landlords.

When away from the property, you’ll most likely rely on online communication. This provides online scammers more opportunities to impersonate you or engage in phishing activities.

Fortunately, you may be able to protect your property by working with an expert in the rental field. Particularly, if you are an out-of-state landlord, have a sizable investment portfolio, or already have a full-time job.

A seasoned property manager can help keep everything running smoothly on your behalf. Aside from saving you from online rental scams, they can also help with the following.

• Market the property to a vast prospective tenant pool.
• Screen prospective tenants to ensure placement of a high-quality resident. That is, a resident who will care for their rented premises, report issues on time, and pay rent on time, every time.
• Handle rent collections seamlessly.
• Handle repairs and maintenance, and efficiently coordinate with vendors and contractors.
• Ensure legal compliance.

Also, by working with an expert, you can rest assured that your property listings won’t be used elsewhere to scam potential renters. Seasoned property managers only use verified online platforms that are scam-proof.

Conclusion

Now you know how to recognize and avoid rental scams. At American Dream Realty And Management, we can quickly recognize if your property is being used by a scammer and handle the situation appropriately.

We are a full-service real estate and property management company in Baltimore City and all the surrounding areas. We can help you maximize your income and lower your workload. Get in touch to learn more!