Rental with a Catch: How Not to Become a Victim of Apartment Scammers

Fraud in real estate rental is common in large cities and tourist areas. Scammers use various schemes to deceive tenants, offering non-existent properties or misleading them about the terms of the deal. Losses can reach significant amounts, and in some cases, deceived tenants find themselves without housing in an unfamiliar city.

Fake Rental Listings 

One of the most common schemes is posting fake listings. Fraudsters publish attractive offers at low prices, using photos of other people's properties. As a result, potential tenants contact fake landlords who demand advance payment for booking or a deposit. Once the money is received, contact with the scammer disappears.

Signs of Fake Listings:

1. Price below market value.
2. No possibility to view the property in person.
3. Demand for payment before signing the contract.
4. Refusal of official transaction documentation.
5. Use of template texts in listings.
6. The landlord asks to transfer money to a personal card instead of a bank account.

Another scheme is placing listings with real photos but knowingly false information. For example, scammers indicate a non-existent address or claim that the apartment is located in a prestigious area, whereas in reality, the housing is on the outskirts of the city.

Fraud with Apartments for Rent

Some scammers use real properties rented out to different clients simultaneously. They show the same apartment to several tenants, signing a fake contract with each and receiving a deposit. As a result, tenants face a situation where several people claim the same apartment.

There are also cases of renting from intermediaries posing as owners. They rent out real estate for a short term, subletting it without the owner's knowledge. The actual owner may cancel the deal at any time, leaving the tenant without housing. Sometimes scammers take payment for several months in advance and disappear without handing over the keys to the apartment.

Another form of fraud is renting out “non-existent” housing. Scammers rent an apartment for a few days, create fake documents, and offer it for long-term rent to several people simultaneously. When new tenants come to move in, they discover they have been deceived.

Another type of fraud is renting apartments to straw men. A fake tenant rents housing for a short term, then rents it out with fake documents and disappears, leaving the owner and the affected tenants to sort things out among themselves.

How to Recognize Scammers When Renting

To prevent financial losses, you should follow a few rules:

1. Verify the owner's documents and property ownership rights.
2. Inspect the apartment before making an advance payment.
3. Sign a contract with clearly defined terms.
4. Check information about the owner in open sources.
5. Beware of offers with suspiciously low prices.
6. Use verified platforms to find housing.
7. Do not agree to payments through dubious payment systems.
8. Request payment confirmation and keep all receipts.

It is important to remember that reliable landlords do not demand advance payment without signing a contract and always have property documents. If a landlord avoids meetings and insists on transferring funds, this is a clear sign of fraud.

Real Estate Rental Scams 

In addition to fake ads and double renting, there are other fraud schemes:

1. Fake landlords. Individuals posing as owners demand payment and disappear.
2. Short-term rental scams. Unscrupulous intermediaries rent out housing for a few days and then demand additional payments for alleged damages.
3. Deposit scam for an apartment. Under the guise of booking or reserving, scammers receive money and disappear.
4. Fake agents. Some scammers create fake real estate agencies, charge a fee for finding housing, but do not provide any services.
5. Fake intermediaries. Individuals posing as representatives of real landlords charge for viewing the apartment but never provide access to the property.
6. Fraud through messengers. Some scammers conduct negotiations exclusively online, avoiding personal meetings, and offer to transfer prepayment to unknown accounts.
7. Fake insurance deposits. In this scheme, the tenant is pressured to pay for insurance, which supposedly returns after the contract ends, but turns out to be fake.

To avoid such situations, it is recommended to thoroughly check the landlord, use official platforms, and sign a contract only after a personal inspection of the property. It is important not to transfer money without written confirmation of the deal and to keep all checks and receipts. You should also beware of offers with suspiciously low prices, as this may be a sign of fraud.