The digital world has certainly been a game-changer for business owners, including rental property owners.
As a landlord, marketing a property has gone beyond ‘For Rent’ signs and local bulletin boards.
You can now market your vacant rental unit online on a smorgasbord of platforms, including social media and rental listing sites for maximum exposure.
However, marketing a property online isn’t scam-proof, and neither is your rental agreement. Online scammers have quickly begun capitalizing on digital advertisements, targeting unsuspecting prospective residents.
And if these scammers manage to use your rental property or rental agreement to defraud prospective residents, it could seriously impact not only your rental investment but your reputation as well.
Luckily for you, in this blog, you’ll learn everything you need to know about how to recognize and avoid rental scams. Keep reading to learn more!
How to Recognize Rental Scams
They Are Using Your Rental Advertisement and Photos
It’s every landlord’s dream to fill a vacancy in the shortest time possible and maintain a low vacancy rate .
To achieve this, you’ll want to create an attractive rental ad that highlights all important aspects of your property. You’ll then syndicate the ad to as many platforms as possible for maximum reach.
But unbeknownst to you, a scammer may be lurking somewhere. They may create another copy of your rental listing and post it as if it were theirs. They will then syndicate the ad to a new rental listing site.
The scammer will pose as the landlord renting out the property, even going as far as swapping out your contact details for theirs.
This ensures that any unsuspecting prospective residents who reach out will communicate directly with the scammer instead of you, jeopardizing your opportunity to welcome new tenants .
They Will Request Payment from Prospective Residents
Once the scammer begins communicating with prospective residents, they’ll request payment of move-in costs to secure the unit.
This can include the first month’s rent and a security deposit. For instance, if the monthly rent is $1,500, the scammer could attempt to make off with at least $3,000 (plus one month’s security deposit).
Scammers often exploit unusual payment methods, such as bitcoin, Steam cards, Apple cards, or Western Union.
For landlords, these scams not only harm their reputation but also highlight the importance of exploring legitimate ways to increase income without raising rent .
The Scammer Will Stop All Contact with the Prospective Resident
After successfully scamming the resident, the scammer will usually cease all communication, leaving the victim to realize they’ve been defrauded.
However, this isn’t always the case. Some victims may even visit the address from the listing, only to discover the property doesn’t exist or belongs to someone else.
Such incidents can severely impact your rental investment . Prospective tenants might share their experience on social media, warning others about the scam and discouraging interest in the property.
Unfortunately, even though you had no involvement in the scam, salvaging your reputation can be a challenging process.
Signs of an Online Scam
The following are some of the telltale signs of a rental scam:
- The rental price is significantly less than what comparable units are going for.
- The method of contact is off. Scammers usually initiate contact out of the blue, usually via social media, phone calls, or email.
- The scammer creates a sense of urgency, pressuring the resident to pay the money quickly without even thinking things through. The scammer may even tell the resident that they risk missing out on a great opportunity if they don’t act right away.
- The scammer may request the resident’s personal information. A legitimate business will never ask for bank details, passwords, Social Security, or other sensitive information via email or phone calls.
- Scammers will usually use unconventional payment methods. Such as, wire transfers, gift cards, or cryptocurrencies.
- The scammer may have difficulty expressing themselves in English. They will often use poor grammar and spelling.
How to Protect Your Property as a Landlord
The following are some of the things you could do to prevent a scammer from impersonating you:
- Monitor your listings. Regularly log to online platforms for unauthorized postings of your rental property and report any fraudulent listing.
- Watermark the photos. Use watermarked images to ensure that no other person can use them.
- Educate tenants on the entire process they must undergo, such as the payment procedures and how they could verify the veracity of the listing.
- Use reputable listing sites. While no rental listing site can completely eliminate rental scams, many platforms have nowadays implemented measures to minimize them. For example, Rent.Com employs a verification system and offers resources to help prospective residents avoid scams. Zillow is another. It offers features like Verified Listings and Rent Verification to indicate listings from reputable sources.
- Hire a reputable property management company.
Partnering with a reputable property management company can help you protect your investment against online scammers.
Often, property managers will use a database to ensure your ad isn’t reposted to other non-reputable sites.
Bottom Line
Rental scams can have a significant impact on your rental investment. The unsuspecting victim can give it a bad rep on online platforms, making it difficult for you to fill a vacancy.
If you’re just starting out or having difficulty renting out your property, then look no further than Rent Easy . We are an established property management company in Chesapeake, VA. We can help you not only avoid rental scams, but also do the following as well:
- Find quality tenants to rent your vacant property.
- Determine the right rent amount for a major impact on your cash flow.
- Collect rent on your behalf.
- Respond to repairs and maintenance requests quickly.
As a full-service property management company, we can help you handle everything. Our goal is to ensure your property is not only performing in peak condition, but also you are maximizing your ROI.
If you own a property in Chesapeake, Norfolk, Virginia Beach, Hampton Roads, or Suffolk, give us a call today to learn more!
