{"id":158,"date":"2017-06-15T09:00:39","date_gmt":"2017-06-15T09:00:39","guid":{"rendered":"https:\/\/www.renthop.com\/content-manager\/?post_type=studies&p=6108"},"modified":"2017-06-15T09:01:38","modified_gmt":"2017-06-15T13:01:38","slug":"rental-scams-and-how-to-avoid-them","status":"publish","type":"post","link":"https:\/\/www.renthop.com\/research\/rental-scams-and-how-to-avoid-them\/","title":{"rendered":"Rental Scams and How to Avoid Them"},"content":{"rendered":"
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Summer is rapidly approaching, which means that the renting season will soon be in full gear. Historically, the rental markets begin to tighten around May, as new students and graduates begin work or school. Unfortunately, the fierce competition and higher prices also create the perfect conditions for unscrupulous posters to list scam units.<\/p>\n
Here at RentHop, we\u2019ve developed several algorithmic (as well as manual) processes to verify listings that appear on the site. To this end, we\u2019ve collected a ton of data over the years on suspicious listings and messages. As a renter, you\u2019ll probably end up consulting several different online sources to find your place (which we encourage). Here are some tips to avoid getting scammed during the search. You\u2019ve probably heard many of these tips before \u2013 but scammers are constantly evolving.<\/p>\n
The number one way to guard against scams is to follow your gut (and keep a healthy dose of skepticism). That\u2019s not to say great deals aren\u2019t around, but always be wary of situations where the other party is being particularly sketchy.<\/p>\n
Scam Level: Attempting to wrestle a silverback gorilla (100% danger, 0% positive outcome)<\/p>\n
Western Union is a cesspool of scams, money laundry, and wire fraud. That\u2019s not surprising since they recently admitted as such to the Department of Justice. Similar services are no better. If Western Union, MoneyGram, or an \u201cescrow\u201d service is mentioned at all in your interactions with the \u201cowner\u201d, you can immediately write off the apartment. The apartment doesn\u2019t exist, and you\u2019re probably talking to a guy in Nigeria. We process tens of thousands of messages between renters and owners daily. We\u2019ve never seen an instance where one of these payment methods is preferred.<\/p>\n
Even if you\u2019re on the most reputable site, talking to the most reputable property manager\/agent, you should be suspicious. Old-school scammers might create accounts on apartment search website to post their fakes. Newer, more sophisticated ones might hijack real accounts (via phishing schemes) and use those. They might even send you a phishing-style email from an official-looking website (ex: carbon copy of a fake PayPal website) for your information.<\/p>\n
Scam Level: Swimming with hungry piranhas (you probably won\u2019t get out unscathed).<\/p>\n
Always arrange to see an apartment before sending money. Scammers will try to create a sense of pressure by mentioning other \u201cinterested parties.\u201d They might tell you that they\u2019re out of town and can\u2019t show the apartment. They might even have an elaborately crafted story about being an overseas missionary. No matter what the owner tells you, always be on the highest alert if the owner is being evasive about scheduling a showing.<\/p>\n
Be extra careful about wiring money. Wiring money to someone you don\u2019t know is risky in general. Wiring money internationally (if you\u2019re a US resident) is even more dangerous. Many individual owners are fine taking a personal check (provided it clears before the key transfer). Larger landlords and property managers will probably charge you a small application fee between $20 and $100 dollars to hold an apartment temporarily (which you can pay with credit). Eventually, you\u2019ll end up bringing cashier\u2019s checks to their leasing office or mailing it to their physical US location.<\/p>\n
If you\u2019re moving from out of town (or overseas), you\u2019ll need to be extra careful throughout your search. In fact, you\u2019re probably the prime target of most scam attempts. In these cases, you\u2019ll be best off paying extra to work with a reputable property manager or real estate agent.<\/p>\n
What makes a property manager\/real estate agent reputable?<\/p>\n
Scam Level: Going all in on the slot machines (small chance you find a gem, most likely you lose it all)<\/p>\n
If the price is below 2\/3 of what similar apartments in the area are renting for, there is a 43% chance that it is a scam. If it is below half, then there is a 79% chance that it is a scam. Most apartments (assuming the same size, location, and amenity set) will fall within the same price range. We\u2019ve found that nearly 75% of apartments will be within 15% of the median. On the lower end, the number of legit apartments quickly decreases as you get cheaper than 15%. This relationship doesn\u2019t hold on the upper end (as prices increase) since very high-end rentals exist.<\/p>\n
So if you actually see an extremely cheap apartment, it\u2019ll probably fall into one of the 5 categories below (in order of likelihood):<\/p>\n