Avoiding Home Rental Scams

Avoiding Rental Scams: Protect Yourself and Your Finances

Renting a home is an exciting milestone, but it can also be a stressful process, especially with the rise of rental scams. Scammers often prey on people who are looking for a place to live, tricking them into paying for properties that don’t exist or aren’t available. At Commonwealth Credit Union, we want to help you protect your finances and find a home safely. Here are some tips to help you avoid rental scams.

1. Know the Red Flags

Rental scams can be sophisticated, but they often share common warning signs. Be wary of the following:

• Too Good to Be True: If the rent is significantly lower than other properties in the area, it could be a scam.
• Pressure to Act Fast: Scammers may push you to sign a lease or send money quickly, claiming other people are interested.
• No In-Person Viewing: If the landlord or agent refuses to let you see the property before paying, consider it a red flag.
• Odd Payment Requests: Be cautious if you’re asked to pay in cash, wire money, or use gift cards. These methods are hard to trace and often used by scammers.

2. Do Your Research

Before committing to a rental, take the time to research both the property and the landlord:

• Search the Address: Look up the property online to ensure it’s real and available for rent. Cross-check the listing on different websites like Zillow, Rent.com, and Apartments.com. 
• Google the Landlord: Check the landlord’s name and contact information to see if any scam reports or negative reviews appear.
• Visit the Property: Always try to visit the property in person. If you can’t, ask someone you trust to check it out for you.

3. Never Send Money Without a Contract

A legitimate landlord or property manager will provide a lease or rental agreement before asking for any money. The contract should include details about the property, rent amount, deposit, and terms of the lease. Never send money before you’ve seen and signed this document.

4. Use Secure Payment Methods

If you need to make a payment, use a secure method like a check or credit card, which provides some protection and a paper trail. Avoid wire transfers, cash, or payment apps that don’t offer buyer protection.

5. Trust Your Instincts

If something doesn’t feel right, it probably isn’t. Trust your instincts and walk away from any deal that seems suspicious.

6. Report Suspicious Activity

If you suspect a rental scam, report it to local law enforcement, the Federal Trade Commission (FTC), or your state’s consumer protection office. This can help prevent others from falling victim to the same scam.

7. Leverage Your Credit Union Resources

At Commonwealth Credit Union, we’re committed to helping you manage your finances safely. If you ever feel uncertain about a rental situation, don’t hesitate to reach out to us. We can provide advice on secure payment methods and help you recognize potential scams.

Finding a new home should be an exciting and positive experience. By staying informed and cautious, you can protect yourself from rental scams and secure the right place to live. Remember, if it seems too good to be true, it probably is. Stay vigilant and take the time to research, so you can enjoy your new home without worry.