BBB Alert, Online Home Rental Scams

BBB Warns Renters to Be Wary of Bogus Home Rentals Online

Consumers who wish to rent an apartment or home using Craigslist or other online classifieds need to use caution according to your Better Business Bureau.

The BBB’s national office has received reports from the public that some ads are false and are being placed with the intent of stealing money from potential renters.

According to the National Low Income Housing Coalition, about 36 million households in the U.S. are made up of renters -- which make this a large segment of the population that could potentially be scammed.

Although finding rental properties online is very convenient and millions of people have done so successfully, there are scammers who capitalize on this new way of finding a place to live.

Here’s how many of the scams unfold. The renter responds to an online ad and is told by the supposed landlord that they must wire money as a deposit. The potential renter is then promised they will receive the keys. When the renter asks to check out the property first, the landlords claim to be out of the country and can not show the house.

As a result, some shocked homeowners have received knocks at their doors by people who were planning to move into their new rental home. Often the real homeowners have their house up for sale – not rent - and had pictures posted online that the scammers could steal for their bogus listings.

Here are some red flags:

• The deal sounds too good to be true. Scammers will often list a rental for a very low price to lure in victims. Find out how comparable listings are priced, and if the rental you are considering is considerably lower, walk away.
• The landlord is located elsewhere and prefers to communicate via e-mail. Scammers often claim they have just been relocated out of the country for a job or missionary work - don’t believe it.
• The landlord requires a substantial deposit before handing over the keys or even showing the home. Don’t pay any money before inspecting the home, inside and out.
• The landlord asks the renter to wire money through wire transfer services such as Western Union or MoneyGram. Money sent via wire transfer service is extremely difficult to retrieve and once the scammers have picked it up; there is little recourse—if any—for getting your money back.