Recognizing and Avoiding Housing Fraud

There are many potential housing scams that both home seekers and home providers may fall victim to. Whether you are using online or in-person strategies to look for your homeshare, it is important to be vigilant when it comes to your financial and physical safety. Having an awareness of common housing scams will give you the ability to recognize red flags and avoid adverse situations. Implementing proactive tactics to protect yourself from scams will also help make you less of a target.

One of the most common methods scammers use is tricking people into sending them money online without giving them anything in return. A scammer may post a fake listing and have potential renters send them money upfront before even seeing the place in person. They may claim this money is for an application fee or deposit, but once the home seeker sends the money they disappear. This can be tricky to navigate because there are legitimate leasing agencies who do require fees in order to apply for an apartment or space for rent. You should do research on the leasing company or meet with the agent or homeowner before sending anyone money online. When it is time to exchange money, ensure you are exchanging through a channel that is legitimate and can be traced in case any issues do arise.

If you are looking for a space to rent and find a listing with an extremely affordable price you may feel excited or lucky. It is important to avoid letting these initial emotions cloud your judgement and logic. Consider whether the price is appropriate for the space being offered, and if the rental rate is in line with other similar listings in the area. It may be a red flag if the space being listed is suspiciously cheap when compared to other options. The listing may be fake or there may be some other catch that is not being honestly reported in the listing. Proceed with caution and don’t always take listings at face value. You should always try to tour the living space before signing a lease or sending money.

Sometimes there are listings posted on online platforms that are not real listings. The person posting the space may not actually intend to rent it out, or they may not actually own the space at all. Scammers can easily find photos on the internet and repost them, claiming them as their own. The intention behind these fake listings is often to scam people out of their money or trick people into thinking the space for rent is nicer than it actually is. These fake landlords will often request money upfront, claiming it is for a deposit or other fee. After receiving the money, the scammer will probably cut contact with the person seeking housing and delete the listing, or maybe even their account. Requesting a tour of the space and meeting with the agent or homeowner is a good way to protect yourself from fake listings.

When searching for a renter or space to live you may encounter inappropriate or predatory behavior. One example of this may be an older male offering a young female a low rent in exchange for companionship. Although he may be a lovely gentleman, one must ask what type of companionship he is really looking for. Homeowners should also be wary of predatory renters, as some may be looking to gain access to a home with ill intentions. It is always important to get to know someone relatively well before agreeing to live together in order to get a sense of their character.

A common method employed by scammers is creating a sense of urgency, pressuring the homeowner or home seeker into making a bad decision without having the time to think about it first. Searching for housing and finding someone to rent a space can be stressful, and oftentimes people are hoping to quickly find a solution to their problem. It is important to have empathy for those in tight situations, but it is also necessary to protect yourself, your space, and your money from scammers. If someone is emphasizing a time constraint and forcing you to quickly make a decision, it is important to take a step back and assess the situation without the time-related pressure.

One of the most effective ways to assess if a homeowner or potential renter is fraudulent is by meeting them face to face. It is very easy to uphold a fake persona through a screen, but it is much harder to trick people when they can assess you in person. Oftentimes, if you send a request to a scammer to meet in person, they won’t respond or will refuse to meet, knowing their fraud will be exposed. You should always request an in person meeting, first at a neutral location and then later at the home, if you are looking to homeshare with someone you do not know.

Whether you are looking to rent out space in your home or you are searching for somewhere to live, you should be cautious about how much personal information you share with others online. Being too public with your date of birth, address, full name, or phone number can enable scammers to use your information in adverse ways. Identity theft or other security risks can result from oversharing online. However, there has to be some give and take between home seekers and home providers when it comes to the amount of information being shared. Sharing too much information can be harmful, but withholding information may be cause for suspicion. It is best to be general at first, such as explaining the general area of the home rather than the exact address, and share more information when you have had the chance to further assess each other. Using the instant messaging programs provided through many online platforms, such as Facebook Marketplace, is also a more secure option than sharing your phone number with strangers.

When meeting people you met online in person, we advise bringing along a trusted friend or family member. If scammers know you have a strong support network, you become less of a target. People looking to scam you often rely on the fact that you are easy to manipulate or overly trusting. Bringing along another person can provide a second opinion, and others may pick up on red flags that you don’t.

An effective way to assess potential housemates is by conducting background checks. By looking into their criminal, financial, work, and housing history you can get a better understanding of whether or not they will make a good housemate. You can call personal references and previous landlords or renters to find out more about their personality, what they are like to live with, and whether or not they pay their rent on time or have been previously evicted. You can ask potential renters to provide credit reports or pay stubs as proof of income. If you are posting your space for rent you should be upfront about the fact that you require background checks for all who apply. Doing this may deter people with unsavory histories from applying in the first place.

Although it is important to be cautious of the scams out there, there are still a lot of good people just looking for a compatible living situation. The process may feel difficult to navigate, but taking your time and doing everything safely will help increase your chances of finding a great renter or space to rent.

To see an example of a real housing scam and a breakdown of its red flags, read our blog post here!

To learn more about the homesharing process read our other blog posts or watch our video series on YouTube!