With the start of the New Year, renters across the country may be planning to start fresh and make the move to a new apartment that’s around the corner or the country. They’ve locked in their rental cost and have already paid the first and last months’ rent, as well as the security deposit. But imagine their horror when they later realize the landlord is fake, the property doesn’t really exist, and they’ve lost thousands of dollars.
Jonas Bordo, co-founder and CEO of Dwellsy, a national rental platform, has heard it all and noted that these scams are continuing to escalate.
“The worst case is when the renters don’t know it’s a scam until they pull up to the new apartment building and then discover there’s no apartment for rent,” he told The Epoch Times. “It’s a terrible situation, and they’re basically homeless at that point.”
A recent national survey by Dwellsy indicates 22 percent of renters have personally been the victims of rental scams, with an average loss of $3,000. “I was shocked by this number,” he admitted. “It’s impacting people of all age groups, and most of them can’t afford this at such a vulnerable time in their lives.”
Mr. Bordo said because the scammers often use burner phones, they could be anywhere in the world, making it difficult, if not impossible, for police to track them.
“In many cases, people have paid using Venmo or other online payment platforms and there’s no way for them to recover that money,” he said.
“If they don’t have the funds to put a deposit on another apartment, many scam victims find themselves staying with parents, friends or relatives until they can save up enough money again.”
Over the last 10 years, he said, rental scammers have stepped up their game, using platforms like Craig’s List, Facebook Marketplace, and others that offer anonymity.
“There are a lot of legitimate great deals there, but you have to be diligent and ask to tour the apartment; just viewing the outside of the building is not enough,” he cautioned.
Mr. Bordo also warns against making any advance payments without physically seeing the property first.
Other things potential renters can do to avoid being scammed are to visit the building and speak with the manager to ensure that an apartment is actually available for rent.
“Search for the rental company’s website or look up an individual on LinkedIn,” added Mr. Bordo. “If anyone is reluctant to show the apartment, that could be a red flag.”
For those seeking to move out of state, Mr. Bordo recommends having a friend or family member in that area check out the rental. If that’s not possible, he believes it’s worth it for them to visit the property themselves and tour the neighborhood before making any commitments.
So far this year, the Federal Trade Commission (FTC) has received 5.7 million reports of fraud and identity theft, including rental scams. It reports that scammers often commandeer legitimate rental listings, copying photos and descriptions and then replacing the landlord or agent’s contact information with their own.
Mr. Bordo also recommends searching for the property online and making sure the rental company’s name is the same on all the ads.
The FTC adds that renters also search the name of the property owner or rental company using the words “complaint” or “scam.”
“If the rent is much lower than most rents in the area, that could also be a sign of a scam,” the FTC website warns. “And if anyone pressures you to make a decision quickly to get a great deal, just walk away.”
Potential renters should never give personal or financial information to anyone who may contact them, claiming to be working with the owner or rental firm.
In addition, the FTC notes that those seeking a lease should never pay with cash, wire transfers, gift cards, or cryptocurrency.
Realtor.com echoes Dwellsy’s advice and adds that would-be renters should beware of listings that are full of grammatical errors.
“Serious landlords or property managers will take time to write a decent listing and proofread it,” their website cautions.
Another red flag is the lack of a tenant screening process. Most professional landlords will always have a set tenant screening process that they follow to make sure tenants will be able to pay their rent.
Dwellsy receives its listings directly from property owners and managers, and they vet everyone to ensure they’re legitimate.
“Renters also have the option of working with real estate brokers,” Mr. Bordo added. “That can add real value and safety.”
The National Association of Realtors reports that the top states for rental scams are Idaho, Hawaii, California, Colorado, and Oregon. The top cities for these scams include New York, Los Angeles, San Francisco, Phoenix, and Columbus.
Those who have been victims of rental scams should report them to their state attorney general and the FTC at www.ReportFraud.ftc.com.
