Recognizing a Housing Scam

Have you ever been searching for housing and come across a deal that seems too good to be true? It probably is! In this article we’ll cover some common housing scams and how to avoid them.

Recognizing a Scam

Some common scams involve sub-leasing, so it is best to deal only with the property owner or a verified leasing agent. Make sure the owner of the property is identified in the lease you sign and make sure you get a copy of the document.

Also, make sure you see the property and take a walkthrough of it before you sign any lease. Make sure the address on the contract matches the property you toured. Read the lease well. Some property agents list properties at terrific rates, but when you read the fine print it might turn out to be a ‘per room’ rate. Without knowing it you could sign a lease for a four-bedroom property and find yourself living with three strangers.

Never send money, especially cash. There are two reasons for this. First, there is no evidence in cash transactions that you paid the rent. Second, there is no recourse with cash if it was a scam. Many credit cards and bank accounts offer some degree of fraud protection or the ability to stop payment on checks. Once you give someone cash, it is gone for good.

Other signs of a potential scammer include the following:

• Requiring no background checks or rental histories.
• Charging outrageous security deposits (most states have limits on what is legally permissible for security deposits – verify if it sounds too high).
• The rental rates are exceptionally good for the apartment.
• The property owner doesn’t want a lease.

If You Are a Housing Scam Victim

It’s always important to report scams. Many of these scams go unreported, leaving no indication wrongdoing has been committed and creating a situation where even more people fall victim to these tactics. These are some of the things you can do:

• Contact the resource where the advertisement was reported and leave a complaint or negative review.
• Inform local law enforcement of what is going on.
• File a complaint with the Federal Trade Commission by calling 1-877-382-4357.
• File a complaint with the Internet Crime Complaint Center by visiting their website at https://www.ic3.gov/

You may or may not be able to get your money back this way, but you can take comfort in knowing that you are preventing others from falling victim to these scammers in the future by shining light on what they are doing.

There are plenty of great deals available in communities of all shapes and sizes if you know what to look for — and what to avoid. Avoid these online housing scams to find an apartment that will meet your needs for this next adventure in life.

Looking to Buy a Home?

We can help! Make sure to reach out to one of our home loan specialists. Our specialists know the mortgage industry inside and out and are happy to speak with you about your options and needs. A conversation won’t lock you into anything. It can only help you! Give us a call today at 800.852.5316.

Read more articles like this on HZCU’s Financial Knowledge Hub.