Don’t Get Tricked: How to Avoid Rental Deposit Scams

We’ve noticed that more and more of our readers and search reports indicate that people are falling for rental deposit scams. These scams can be convincing and costly, so knowing how to avoid them is important.

Imagine this: you find a perfect rental listing online, the price is right, and the photos look great. You contact the “landlord,” who pressures you to send a deposit quickly to hold the property. You pay, only to find out that the listing was fake, and you’ve lost your money. This scenario is all too common, but it can be avoided.

Tips to Avoid Rental Deposit Scams

1. Visit the Property:
   • In-Person Viewing: Always see the property in person before paying any deposit. If an in-person visit isn’t possible, request a live virtual tour where the landlord or property manager is present.
   • Avoid Excuses: Be cautious of landlords who claim to be unavailable to show the property or are out of the country.
2. Research the Landlord or Property Manager:
   • Check Ownership: Use public property records to confirm the landlord’s ownership of the property.
   • Cross-Check Contacts: Look up the landlord’s contact details online to see if they are connected to scam reports.
3. Be Cautious with Online Listings:
   • Watch for Duplicate Ads: Scammers often copy legitimate rental ads. Search for the property on different sites to spot any duplicates.
   • Low-Price Red Flag: If the rent is significantly lower than comparable properties in the area, it’s likely a scam.
4. Do Not Pay Cash or Use Untraceable Methods:
   • Stick to Secure Payments: Use checks, bank transfers, or other traceable methods. Avoid paying with wire transfers, gift cards, or cash apps that are hard to trace.
   • No Upfront Fees: Never pay any deposit or fee before signing a legitimate lease agreement.
5. Ask for a Lease Agreement:
   • Read Before Paying: Make sure you receive and sign a lease agreement that clearly states the terms before paying any deposit.
   • Verify the Details: Confirm the lease matches what you discussed and check for any unusual clauses.
6. Beware of High Pressure and Urgency:
   • Avoid Rush Tactics: If a landlord pushes you to make a quick decision or pay immediately to secure the property, be cautious. Scammers rely on urgency to catch people off guard.
   • Too Many Interested Parties: Be skeptical if the landlord insists there are many renters ready to pay unless you act fast.
7. Communicate Smartly:
   • Face-to-Face Communication: Choose landlords who are willing to meet in person or have a video call. Scammers often avoid this type of contact and stick to email or messaging apps.
   • Email Red Flags: Watch for generic email greetings like “Dear renter” and poorly written emails.

What to Do If You Think It’s a Scam

If you suspect that you’re dealing with a rental deposit scam, take action:

Final Tips

• Trust Your Instincts: If anything feels off, trust your gut and look for other rental options.
• Use Reputable Sites: Stick to rental platforms that are known for verifying their listings and avoid sites that don’t have strong security measures.
• Keep Records: Save all communication, payment proofs, and copies of the lease. These records are helpful if you need to report the scam or seek legal action.

Being aware and vigilant can make all the difference. By following these tips and using resources like Section 8 Shield, you can protect yourself and your money when searching for a rental property.