Three scam tips for renters

It’s tough enough being a renter in a big city without some yokel trying to scam you, but that’s what happens far too often. The scenario is usually the same. You’ll see a listing for a well-priced apartment in a good neighborhood, but when you call to inquire you run into roadblocks. Maybe the landlord wants you to pay for an instant credit check. Maybe there’s a fee to access the full listing. There are plenty of others.

The credit report

In a credit report scam, you’re sent an email or instructed to go to a website where you purchase an instant credit report. The scammer makes money by referring customers to the credit report provider and is paid a commission from each sale. In many of these cases, there isn’t even a real property for rent. Remember, too, that everyone is entitled to one free credit report each year, so you should not be buying these reports.

The fake listing

Scammers use sophisticated software to find and clone rental listings. These listings typically have a lower monthly cost than they do on other rental listing websites. Craigslist is very popular for this scam. The scammers make money by requesting a rent deposit via wire transfer. Once you’ve sent money, you’ll never see it again and you’ll also discover the place you rented is owned by a different party.

Research has shown that the majority of these schemes originate in Nigeria and are run by the equivalent of a “scam factory.” The solutions are to never use Craigslist for a rental and never send money via a wire transfer, money order, or Green Dot MoneyPak to pay rent to a landlord you don’t know.

The realtor service company

Everyone likes inside information, right? Would it be worth a few bucks each month to get a better deal on an apartment? If you said yes, you’re ripe for this particular scam. Companies offer access to exclusive listings, including pre-foreclosure rentals and rent-to-own properties. To obtain access, you must pay an upfront fee and a monthly membership fee. The problem is, most of the time, the companies selling the service have no connection to the properties listed.

There are certainly legitimate companies providing this kind of solution for renters. Thus, it’s makes it difficult for renters to know who to trust. The best advice is to work from referrals by friends or check the Better Business Bureau (bbb.org) for information about the company. You can also try doing a search, but beware of glowing endorsements. Too often, the endorsement itself is the work of an affiliate who gets paid for each referral. The bottom line is when checking out a company, it’s better to stick to known sources.

Information for these tips came from a report conducted by the NYU Tandon School of Engineering. You  can read the full story on prnewswire.com.