Red Flags & Scams in Searching for a Rental Home
Are you looking for a home to rent in Tyler, Whitehouse, Lindale, Arp, or Bullard? While you search for the perfect place in East Texas, it’s important to be aware of common scams. With rising rental prices and high demand across East Texas, it’s easy to fall for a too-good-to-be-true deal. Unfortunately, not every online rental listing is legitimate, and many popular sites like Facebook and Craig’s List are used by scammers to lure potential renters.
Scammers move fast in competitive rental markets, disappearing with your money before you realize what’s happened. To help you recognize some if these red flags, we’ve identified a few of the most common scams you should watch out for and tips on how to avoid them.
Scam #1: The ‘Fake Landlord’ Scam
This scam is one of the most common, involving a fake landlord pretending to own the property. Here’s an example:
Example: Tiffany is searching for a 3-bedroom house to rent in Tyler, Texas, but is struggling to find anything in her budget. She finally finds a great deal and contacts the landlord, Larry. Larry tells her the property is still available but the current tenants haven’t moved out yet, so she can’t tour it inside. He offers to send her photos/video of the home, and encourages her to drive by and check out the neighborhood.
Tiffany loves the location and the rent is affordable, so she’s excited to apply. Larry asks her to fill out a short application and send an application fee and security deposit through CashApp or Venmo to hold the house. Days before her move-in date, Larry claims he’s had a family emergency and needs to leave town but assures her everything is fine. He asks her to sign a lease electronically and promises to overnight the key. The key never arrives, and Tiffany soon finds out Larry was a scammer. His phone number is disconnected, and she’s lost both her money and the home.
How to Avoid This Scam:
- Always tour the inside of the rental, either by meeting the landlord in person or by using the management company’s self-tour, digital lockbox system, like ShowMojo or Rently.
- Never send money via apps like Venmo or CashApp, or through wire transfers, or pay in cash.
Scam #2: The ‘Application Fee’ Scam
In this scam, fraudsters post fake rental listings to collect application fees and sometimes deposits. They often impersonate landlords, real estate agents, or property locators, using expired listings or homes that aren’t actually for rent. They will typically offer a deal that’s lower than the average market rate to create urgency.
How to Avoid This Scam:
- Be cautious of rental listings that are priced significantly lower than comparable homes in Tyler, Bullard, or nearby cities. A super-great deal is often a red flag.
- Scammers often push you to apply quickly, playing on the fear that someone else will snag the property first. Take your time, and research the property thoroughly before making any payments.
Scam #3: The ‘Second Chance’ Scam
This scam targets renters with low credit scores, low income, or rental history challenges, like past evictions. These scammers promise to help them find housing through “second chance” listings or offer co-signing services. They almost always ask for upfront payments, promising a guaranteed approval.
How to Avoid This Scam:
- Be wary of anyone offering guaranteed rental approval. Legitimate landlords, like CPM will process your application and evaluate based on a set criteria, and approve qualified applications.
- Be suspicious of any upfront fees, like $25 or $50, as scammers often rely on collecting these amounts from numerous victims.
‘For Rent/Lease by Owner’
If you’re dealing directly with someone claiming to be the property owner, do your research:
- Google the owner’s name, email address, and property address.
- Verify property ownership through county Appraisal District records.
- Check the owner’s online presence. Scammers usually have no social media or online reviews because they frequently change their contact information.
Above all, trust your instincts. If something feels off or seems too good to be true, it’s better to walk away than risk being scammed.
What to Do If You’ve Been Scammed
Even the most careful renters can fall victim to a scam. If it happens to you, here’s what you should do:
- Contact the local Police Dept: Provide all emails, texts, leases, and documentation you have related to the scam.
- Report the online listing: If you found the rental on a website like Facebook or Craigslist, report it immediately to the site to help prevent others from being scammed.
- Report the scam to the Federal Trade Commission at 1-877-FTC-HELP.
- Contact the FBI: Internet Crime Complaint Ctr. (IC3) at https://www.ic3.gov/
By staying informed and alert, you can protect yourself from rental scams and ensure a safer, smoother rental search in East Texas.