Lease and desist

Digging into money maneuvers that feel sus.

Rental scammers are like sharks: They can smell desperation, and they’re constantly on the hunt for unsuspecting renters—especially in the wake of the Covid-19 pandemic. First Orion reports that housing-related scam calls increased 300% in May 2022. Meanwhile, last year, the FBI Boston Division warned Northeasterners of a spike in rental scams, noting a “significant increase in the amount of money being lost by people who are desperate for a good deal.” So if you’re apartment hunting, keep an eye out for these common rental scams.

Scam 1: Fake listings

You’re trawling Craigslist, and you find a palatial three-bedroom with in-unit laundry, a freshly renovated bathroom, and a bunch of trendy shops and restaurants around the corner. Oh, and it’s way under budget. Unless you’re a full-on millionaire with money to burn on a luxury pied-à-terre, it’s probably a scam. 🥲 The FTC warns of “phantom rentals,” or fake listings that scammers create for the sole purpose of ripping off hopeful renters.

Avoid the scam: The FTC advises against renting sight unseen. If you aren’t able to tour the listing yourself, ask a friend to check it out and make sure it’s legit. (Also, speaking from personal experience, a little reverse Google image search never hurt anybody. Scammers love pulling stock footage of glamorous apartments.)

Scam 2: Upfront cash deposits

Say you’re moving to the Big Apple and you find what looks like the perfect apartment. You’re ready to sign the lease, but the property manager demands a huge sum of money to “take it off the market” before you even apply. This isn’t to be confused with an application fee or a broker’s fee—that dreaded (but legal) financial burden that many NYC renters know all too well.

This is something else—usually a grand or two wired directly to the scammer. Once you send the money, you’ll never hear from them again.

Avoid the scam: If someone asks for a large sum of money before you apply for the apartment, run the other way.

Scam 3: Bait and switch

Maybe that “in-unit laundry” turned out to be a conveniently placed ceiling leak. Maybe the “1.5 baths” turned out to be one bath and a damp hole in the floor. Maybe the actual rent is much higher than the rent you saw on the StreetEasy listing. These are all examples of a classic bait and switch scenario. Two things you’ll want to look out for:

• Prices that look too good to be true: If you find a nice-looking property priced significantly lower than the average market rate, that’s a red flag. The owner might be using that low price to lure you in—and they could try to pressure you into a much pricier unit.
• Listings that feature “similar units”: This is a pretty common practice, especially when landlords are trying to rent multiple units in the same building. Look for the disclaimer that the “photos shown are of a similar unit.” It might turn out OK, but you’ll want to check out the actual listing in person to make sure you’re getting what you expect.

Bottom line: With a little research (and a healthy dose of skepticism), you can avoid rental scams and save your money for the fun stuff—like first month’s rent.