Rental Fraud and Tips to Avoid Them
A condo scam is a fraud when someone coerces you into signing a lease or paying a deposit for a property that doesn’t exist or isn’t available. These are signs and symptoms that you could be getting scammed: being asked to hire before seeing the work; a price that appears too good to be true.
Fraudsters may take advantage of this desire by attempting to lure you into a condo scam. Rental scams are intended to steal money from people looking for accommodation. The truth is that being aware of condo fraud red signs will help you avoid falling victim to a scam.
In rental scams, someone pretends to be renting you a property while trying to steal your money. Although the continuous element of the scam is that someone acting as a legitimate landlord or property agent tries to get you to sign a lease and send money, the rip-off may be carried out in a variety of ways. In actuality, there isn’t a condominium, or the person who “leased” it to you doesn’t own it or have the authority to rent it.
Purple flags indicating a condominium listing or condominium agent is attempting to bilk you include the following signs and symptoms:
1. Rental movies appear to be too good to be true
You have likely come across an advertisement for real estate sooner or later that offers a beautifully refurbished apartment for a price that is far lower than the industry standard. A list is perhaps too precise for the charge if it looks that way. Always get a tour of the property before agreeing to a contract or making a deposit.
2. Rental Listing Is Inaccurate
A fraudster may produce listings that have grammatical errors and other formatting errors. According to USA.gov, look for irregularities in the wording of condominium advertisements as well as excessive use of capital letters since these are red signs of housing fraud.
3. You’re Under Pressure to Lease Immediately
A reputable landlord or condominium agent may be understanding if you want to inspect a potential rental property before spending your hard-earned money to rent it. If a real estate salesperson pushes you to sign a contract before you’ve even seen the apartment, you should be wary. The asset might not always be available for hire, or the agent may not need to meet with you if they lack the authority to do so.
4. You are requested to pay upfront
You shouldn’t have to pay a fee to tour a property, whether it’s from a landlord or a consultant working for the asset owner. If there is a rate, someone can be attempting to steal your money and flee. A request for cash is a major red flag for condo scams, according to the Federal Trade Commission. Because it might be difficult to reverse and trace money transferred through Western Union or gift cards, fraudsters prefer to employ these payment methods.
5. There isn’t a credit check required.
Before renting out a space, landlords and condominium associations frequently do a credit check on prospective tenants to determine their creditworthiness. While certain places won’t check your credit, you should be careful to research the apartment agent and ensure they aren’t taking advantage of your need for housing by offering a phony home with lax eligibility standards.
How to Prevent Rental Fraud?
Finding a new place to live is stressful, so you’ll feel pressured to choose a location quickly so that you can get settled as soon as possible. However, spending extra time inspecting a condo will help you avoid being duped. Here are some strategies to avoid condominium fraud:
-Always ask to go on a trip. Never engage a domestic worker before inspecting it. Plan a trip to the area to confirm that it is there and that it matches the description in the advertisement.
-Skip any listings that seem suspect. Be wary of postings that are priced below market for the area based entirely on length and renovations once you scroll through junk mail listings.
-Request a meeting with the owner of the asset. Without the owner’s consent, those who pose as their advisor should rent out a home. Asking to meet the asset owner in person at the residence should help you avoid being duped.
-Never send cash. Even if the owner comes up with a complicated story as to why they can’t handle the business in person, avoid paying payment over the wire. Don’t forget to hold off on looking for a home until you get to your new location if you are moving across the country.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.
