Financial Reflections

Suppose you’re a someone who’s looking to rent, and you’ve just found an ideal place online — cheap rent for a big place in a great location.  The only hitch is that the owner is out of state or out of the country so you can’t meet. You’ll also need to wire some money for an application fee or portion of the security deposit to them before you rent.  Still sound like a good deal?  Think again.

This is the essence of a common online rental scam that preys on the renters, rather than the landlords. I first encountered this when working as the webmaster for a small rental site.  A property in Miami was listed for just $300 a month for a 3 bedroom.  I got suspicious and contacted the listing party, posing as a renter.  Sure enough, I was greeted with an email explaining how the landlord was out of town and very busy.  If I could just send $200 for an application fee (by Western Union) and half the security deposit, he could get me the place.

Here’s a summary of the warning signs:

• The rent is well below market.
• The place is just ideal.
• The landlord is out of the country.
• You can’t meet the landlord in person, often you can only reach them by email.
• You have to wire the security deposit or application fee to be considered.

Like the saying says, if it’s too good to be true, it probably is.  Oh, and one more thing, just because it’s a real address that you can drive by and see doesn’t mean the person you’ve contacted is the owner.  Take this example where a rent scammer copied a real listing to Craig’s List and posed as the landlord.

Like many online transactions, the two basic rules that stand out are this: work with people you can meet in person and consider nearly anything that invovles a wire transfer a scam.  Good luck and good renting!

Looking to be the landord instead of the tenant?   You aren’t safe, either.  Check out the scam that hits landlords.

Got a rent scam story?  Share it in the comments below…