For many years rental fraud has become a growing nationwide issue. Due to the high foreclosure rates in many markets renting has become the only option for many individuals who lost their home through foreclosure or even a short sale.

With “Active for Sale” property listings published online for anyone to find, it has become very easy for scammers to take that basic information such as the address, photo, and description of the property to create a fraudulent “For Rent” advertisement. The scammers pretending to be the legal owner of this property have the interested party contact them, either over the phone or via email, and without even being able to look at the property or meeting them in person, to fill out an application and send a one or two month security deposit via a wire transfer to hold the property for them.

What can you do to help prevent from becoming a victim of rental fraud?

• Use a trusted REALTOR association website for your rental searches.
• Google the address. The rental will be listed by the owner or with an agent. If you find a rental has more than one person or agent advertising it be very cautious.
• Do your due diligence. Find out what the average rental is in the area for the size of home you would like to rent. When the rental price is lower than the average rent in the area be very cautious.
• Be suspicious when you are asked to wire your deposit. Most owners are willing to take a personal check, bank check, or money order for the security deposit.
• Don’t rely on pictures and the “owners” words. Visit the property yourself. If the “owner” cannot let you in because they “forgot the keys” or give you some excuse on why you cannot see the home’s interior consider walking away. If you cannot view the inside of the property in person consider contacting a local real estate professional to do this for you.
• The rental application should never include questions that ask you about your personal banking information like credit card or bank account numbers. Many will ask for your social security number. Many landlords will run a credit and criminal background check.