We have previously discussed rental scams that target landlords. Now, we will briefly look into rental listing scams that target renters and how to avoid them. 

The monthly lease payment for single-family rentals as of July rose 6.2% to an all-time high of $2,296. With record home prices, rising interest rates, and growing inflation, single-family rental homes are the most accessible housing commodity in Houston right now. But these conditions make an ideal environment for scammers as some tenants are desperate to find housing. More so, con artists will take advantage of the fact that most rental searches begin online and tenants are not familiar with landlord-tenant laws in Houston. So, if you’re searching online for a rental home in Houston, here are some red flags that can help you identify rental scams.

4 Common Rental Scam Red Flags

1. Misleading, Vague, or Poorly Written Listings

Don’t be fooled by beautiful pictures that look perfect before doing your due diligence. Check the property details for unusual typos, MLS watermarks, contact info, and website. When searching for the next place to call your own, always cross-check the contact information, as scammers can hijack ads by changing the email address or other contact information. Compare the listing on reputable and trusted real estate listing sites like HAR.com and check the listing agent as well as the property details to see if they are the same as that of the advertisement you’ve previously seen.

2. Money Upfront

Scammers will send a request for you to wire the security deposit, application fee, or first month’s rent before even meeting you in person, conducting a background check, or seeing the property first. This is the surest sign of a scam, and once you send the money to them, they will disappear completely. If you reach out about an online rental listing, discuss your options for meeting the person involved, or, if not, request a virtual tour. Application fees are normal, but not paying a security deposit or a month’s rent before seeing the property and signing the lease.

3. Unavailability of Landlord/Listing Agent

Always set up a time to meet the landlord or listing agent and view the inside of the property (not just the outside). But if no one wants to meet you at all and just requires you to pay an amount upfront, then that’s a clear sign to stop the communication immediately. If it’s really impossible to meet in person, then setting up a video chat so you can have a real-time video tour of the property is another option. Remember, a legit landlord or listing agent should have no trouble showing you the listing in person or have other options if an in-person meeting isn’t possible. Otherwise, it’s just another phantom rental or rental listing that doesn’t exist, and the scammer is just trying to lure you in because of the low rent, no background checks, or screening.

4. No Tenant Screening

A scammer’s only goal is to get your money before you find out. So if the landlord or listing agent asks you to wire a security deposit or sign a lease without you seeing the property and performing any tenant screening or background checks whatsoever, especially on your financial stability, then they are under false pretenses and just looking to get a one-time payment from you. Tenant screening is a necessary procedure in every rental process in Houston. It allows the landlord or the property manager to check a tenant’s rental history and verify his or her credit history, employment, and income.

Protect Yourself from Scams Targeting Renters

So how do you win? Important reminders on how to protect yourself can be found on USA.gov… 

• Learn the basics of how rental listing scams work.
• Get the terms of your rental in writing, including fees, rent, and maintenance. 
• Get a copy of the lease, signed by both you and the property owner/manager. 
• Do a search for the owner, real estate management company, and listing. If you find the same ad listed under a different name, that’s a clue it may be a scam. 
• Visit real estate websites. See if the home you want to rent is also listed in another city.

What Should Victims Do

Contact the website where the ad or listing was posted. After that, you may do the following….

• Report the incident to your local law enforcement agency.
• File a fraud/scam report to the Federal Trade Commission.
• File a report with your state consumer protection office.
• File a complaint with the FBI Internet Crime Complaint Center (IC3).

Remember, a scammer’s only goal is to get your money before you find out. And anyone can be a victim of a rental scam, even landlords and listing agents. Knowing the red flags or warning signs will help you avoid fraudulent transactions. If you know someone who is currently looking for a rental property in Houston, inform them about common rental scams or forward this article to them.

Work with Apogee Properties

Apogee Properties is Houston’s Premier Property Management Company. We work and live in Houston, and our property managers are local. We’ve been in business for more than a decade, providing comprehensive property management services in the Houston region, ranging from a studio condo to a multi-family million-dollar estate. Contact us to learn more about our property management services, and what we can do for you and your rental property.

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