Rental scams are nothing new, they’ve been around for years. But in the wake of the devastating Los Angeles fires that have displaced thousands of people, authorities are worried criminals will target people desperate for a place to live.
Rental scams usually work like this: The scammer places an ad on Craigslist or a property rental platform, offering a nice apartment for a below-market rate. The apartment is real – the scammer may have copied an actual listing or picked an address from a nearby apartment building.
Some things about the listing may be a little sketchy, such as the “landlord” asking that the deposit be paid in cash or with gift cards. They also may say the unit is being painted so it can’t be shown – if you want it you’ll have to take it sight unseen.
Rental platform Rently recently published a survey of renters and found that Facebook is scammers’ favorite venue for pulling off a rental scheme. Eighty-eight percent of the people who have been victimized by a rental scam found the fake listing on Facebook, with most of the rest finding it on Craigslist.
For scammers, the prime target is someone who needs to rent a place in a hurry, which describes a lot of Los Angeles fire victims. It can also describe college students at the beginning of a semester.
How to avoid a rental scam
The Federal Trade Commission offers this advice to people who are trying to rent a home:
Do some research. Search online for the management company name plus words like “review,” “complaint,” or “scam.” If you find bad reviews, you may want to look elsewhere.
Verify who and what. Call the number on the management company’s website — not the one in the listing — to make sure the listing agent works there. Check to see if the home’s address is on the company’s website. If it isn’t, it may be a scam.
Visit the rental in person. Check out the apartment yourself or send a trusted friend to make sure it is what’s been advertised. If the landlord insists you pay a fee or deposit before they show you the place, keep looking. That’s most likely a scammer.
Pay by credit card — it’s the safest way. Scammers insist that you to pay in ways that make it hard to get your money back — like wire transfers, cash, cryptocurrency, or through payment apps like CashApp, Venmo, or Zelle. Even if they say the money is refundable, the FTC says you’re not likely to ever get it back.