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41.5% of Phoenix metro renters have encountered fraud

Posted by Diane Brennan on Tuesday, August 7th, 2018 at 9:53pm.

by Nicole DeCenso

Rental fraud is an unfortunate yet common experience for many renters. A new survey from Apartment List reveals that an estimated 43.1 percent of renters have encountered a listing they suspected was fraudulent, and 5.2 million U.S. renters have lost money from rental fraud. For comparison, a lesser 41.5% of renters in Phoenix reported having come across a real estate scam while 2.4% lost money because of it. Rental fraud occurs when someone claiming to be a property manager or landlord, in certain cases the actual landlord, tries to rent a property that doesn’t exist, isn’t their rental or is substantially different than advertised. Of renters who encountered a listing they suspected was a scam, 85.2 percent ignored these listings or realized the scam before losing money. However, still too many renters are falling into this trap.


Young renters especially are 42% more likely to have lost money from rental scams as they tend to be targeted more often than older renters. An estimated 9.1 percent of young renters lost money from a rental scam. Millennial renters may be generally more tech-savvy than older generations, but despite being familiar with online rental searches, many lack the ability to recognize fraud.

In order to avoid rental fraud, it’s important to recognize the most common types of scams:


  1. Bait-and-Switch: A different property is advertised than the available rental, and the scammer tries to collect a deposit or get a lease signed for this property.

  2. Phantom Rentals: A scam-artist makes up listings for places that don’t exist or aren’t rentals, and tries to lure renters with low prices.

  3. Hijacked Ads: A fake landlord posts advertisements for a real property with altered contact information. Homes for sale are often re-listed as rentals in this type of fraud.

  4. Missing Amenities: A real rental is listed as having features and amenities it lacks in order to collect a higher rent, the rental market equivalent of catfishing in online dating. The leasing agent tries to get renters to sign the lease before they notice the missing amenities.

  5. Already Leased: A real or fake landlord attempts to collect application fees or security deposits for a rental that is already leased.


Even if a listing looks completely legitimate, there is still a small risk of fraud. Scammers try to collect money up front, often before a prospective renter has viewed the apartment. Verify a properties legitimacy before making a payment. 31.4% of people have lost over $1,000 due to a fraudulent listing.


Take the following steps before making any payments to avoid losing money from a rental scam:


  1. Visit the Property in Person: Visiting a property is the best way to detect fraud because you will be to make sure the apartment matches the listings details and pictures. If you don’t live nearby, find someone you trust to visit the property.

  2. Verify the Landlord: In some cases, scam artists will gain access to an apartment that isn’t theirs to rent, for example by breaking a window. You can generally verify ownership of the property by looking up city records or talk to the building’s manager if you are renting a condo or subleasing.

  3. Ask to Speak to Current Tenants: Speaking to the current tenants will help you confirm information provided by the landlord. Plus, they can provide additional information about the rental, for example, letting you know if there are any issues, such as a broken appliance.

  4. Rent from Reliable Property Management Companies: If you are particularly worried about fraud, or moving into an apartment sign-unseen, renting from a large, well-known property management company may be your best bet. Larger properties generally have trusted leasing agents and follow a set procedure so you can make sure you’re not being scammed.

  5. Do Not Pay with Cash or a Wire Transfer: Scam artists generally ask for payments in cash or via wire transfer because this form of payment is impossible to track. When possible, use a credit card, or if that’s not possible a check. In one common rental scam, someone poses as a landlord living out of the country, often as a missionary. They ask for a wire transfer of the security deposit or rent and promise to send keys.

  6. Be Careful with Confidential Information: Rental applications generally require providing confidential information, such as a social security number or bank account number. Verify the legitimacy of a property before providing this information to avoid identity theft.

  7. Confirm Prices and Features Before Signing a Lease: Upon moving in, sometimes tenants find that advertised amenities are missing or supposedly included expenses (eg.: utilities, parking) are not actually part of the rent payment. Verify everything in the advertisement, or promised verbally, is spelled out in the lease before signing or paying a deposit. Once you’ve signed the lease, you are most likely bound to the apartment, as is.


Following this advice should help you avoid rental scams and find a home you love. Unfortunately, even the most cautious renter may become a victim of rental fraud. If you’ve experienced rental fraud, you can file a report with your local police department and contact your state consumer protection agency for assistance. Federal agencies usually can’t act on your behalf, for example, by helping return a fraudulent deposit, but they can use complaints reported here to identify patterns of abuse.


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