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After sharing with you some tips to determine if you are dealing with a legitimate company or agent before choosing an apartment, this week we wanted to show you how to spot clues that the apartment you are looking to rent may be a fake.
Rental scams are on the rise, so it is more important than ever to look into the person or company that you are dealing with and make sure they are legitimate. Here are a few things to look out for:
New York Apartment: 2-bedroom vacation rental in Greenwich Village (NY-9572) photo
1) Is there a legitimate company name on the contract that you can investigate further? : We have seen many fake contracts with “company names” like “Charming and Cozy Apartment in Time Square” or “1br-Beautiful Option for Hotels”. Those are not business names; they are lifted straight out of a rental ad!
2) You are receiving communications from multiple email addresses or names: If the email address contains a company domain name (the part just after the @ symbol in the email) you can look up the company to get more information on them.
3) There are errors in the rental dates or prices quoted: Most scammers cannot be bothered to take the time to change the details for every scam or they are scamming so many people that they become confused themselves. That is a major red flag!
4) The directions to the apartment don’t make sense: Google Map the address and see if the directions you have been given are legitimate. Many scammers don’t know the area and have no idea how to get to the apartment. A legitimate rental agency or broker will know the best way to get to the apartments they are listing.
5) The wording of the contract or communication from the agent or company is awkward or has spelling or grammatical mistakes: It may also have numerous repetitions or contradictions within it. Legitimate companies and brokers will have professionals reviewing their contracts to make sure there are no spelling or grammatical errors.
New York Apartment: 1-bedroom rental in Fort Greene, Brooklyn (NY-12503) photo
If you show up at your destination and realize you have been scammed:
1. Of course, find an alternate accommodation.
2. Once you are settled in a new accommodation you can alert your bank or credit card company to the fraud so they can stop payment dispute the charge.
3. Keep copies of all communications with the person who scammed you and a record of all monies paid and the accounts involved. There may be bits of information within those communications that can help police track down the scammer.
4. File a police report with the local police to document the incident. Insurance agencies often ask for a police report of any alleged theft. If you have travel insurance, check whether you are covered for this type of loss, as each plan is different.
So, do what your instinct tells you — do what all tourists are known for — ask a lot of questions and always check the directions – and you can avoid a rental scam!
Share you experiences and comments below.
Until next time……SAFE & HAPPY TRAVELS!
Related apartment rental posts from New York Habitat:
- How to Spot a Rental Scam from 4,000 miles away
- Apartment Renting Tips Video: Can I rent an apartment without seeing it first?
April 30th, 2009 at 12:46 pm
This is a great article. Thank you! I have seen so many people lately falling for scams just like these while attempting to rent an apartment in new York. There are very helpful agenices out there, so please just do your research before making any type of payment!
April 30th, 2009 at 4:36 pm
Thanks for this article. I had to show it to my friend who just almost got scammed! These are great tips to stop from getting scammed, but if it does happen, remember to not be hard on yourself because it truly can happen to anyone, you just have to be careful!
May 1st, 2009 at 10:25 am
Seriously, when looking for an apartment in New York City on Craigslist, I saw so many scams it was ridiculous.
May 1st, 2009 at 1:48 pm
Looking to move to New York…thanks for the tips.
May 1st, 2009 at 3:25 pm
Like you say in your article it is true if Google map is not able to located the street then you can be almost sure that this is a scam! Any streets and avenues of New York City are in major web sites!!
May 5th, 2009 at 4:32 pm
Scams are pretty much awful. They happen all the time, and not just on Craig’s List. A lot of people don’t like Craig’s List because of scams, but they happen anywhere, and not just in big cities like New York, either.
May 6th, 2009 at 1:14 pm
All this info look very interesting and useful. However, it appears that you really have to pay attention when you want to rent an apartment in New York. Be aware of Scams travellers!!!
May 10th, 2009 at 2:14 pm
It’s ashamed that people still have a need to scam their fellow man. I wonder how they will feel if someone turns the table on them. Thank God there’s still some honest people and in your case an angency.
May 19th, 2009 at 3:06 am
hello
i read your tips.
but after i recognized that i have ripped of abt renting a apartment in new york.
and this person is still very active and i found other comments of victims too.
i went to the police department in 54th street to make a file. but they told me that they could not help.
thats it. lost 1500 dollars
kind regards
matthias
May 20th, 2009 at 11:19 am
The best way to avoid being victim to a scam is to do your research before securing a rental and handing over any money.
Afterwards, while there isn’t much you can usually do to recover your lost money if you didn’t deal with an actual company or licensed agent, you should report the ad and person you made contact with to the site where you found the rental advertisement so they can make sure it is removed before more people fall for the same scam.
Go on forums and blogs and detail your experience so people who are being baited into the same scam on different sites can recognize the similarities. Scammers may change contact names or sites they post on but often use the same wording in their ads or contracts. Many copy pictures of legitimate properties they found for rent online and use them with multiple fake rental addresses.
Unfortunately with scams done via the internet, where there is no legitimate company or individual to make a claim against, sometimes the most the police can do is document an incident report for insurance purposes.
A site you can use to report an Internet crime to the FBI is http://www.ic3.gov
People who are approached with a “job opportunity” and asked to use their Paypal account to receive and forward funds to another party should also beware, as many of them are left paying the bill for the scammer when victims dispute the transactions.
May 24th, 2009 at 3:44 pm
wow. I would hate to lose money and ruin my vacation by being scammed that’s why you should rent from a trusted source.
May 27th, 2009 at 9:40 pm
I almost fell for one of these scams while looking for an apartment to rent for a few days in NYC
A lot of posts obviously are scams and I did not have the energy and the patience to find a legitimate one….
Unfortunately I have lost confidence in Craigslist and I ended up booking an hotel room, maybe more expensive but at the end such a saving in headaches and worries……..
July 14th, 2009 at 12:11 am
My friends and I were just scammed- I put way too much trust in my friend who saw the ad on craigslist and met with the guy and assured me everything was on the up and up. i didnt even bother to make sure he checked out. he showed us the apartment, asked for a lot of paperwork, and had us give him the security deposit in cash/money order which i cant believe we even did. its all amazingly foolish of us. here are my tips:
1. refuse to ever pay cash
2. check out them and all their info before doing ANYTHING
3. if they say the landlord or their boss is ‘out of town’ then get out right away, they should be able to put you in touch with someone other than themselves
4. watch out for PRESSURE, such as ‘actually the landlord needs the money today instead of tomorrow’ or extra paperwork not previously discussed.
5. keep copies of everything, yes, but remember that it really isnt much good if the scammer turns out to be a bona fide ghost.
do these things and maybe you will not be a poor robbed fool of a woman like myself
July 17th, 2009 at 12:07 pm
Wow Jeanne, I am so sorry to hear this happened to you! I’ve seen far too many trusting people taken advantage of in rental scams, that’s why I wrote this blog with tips that might help prevent others from falling victim.
At least you tried to dig a little deeper than a lot of victims who surprisingly send cash before ever investigating or looking into anything. Physically seeing the apartment or meeting the person you’re dealing with if you are not going through a company with a reputation, is a good idea. I would add that if you’re not using a rental or travel agency you should ask to see a lease or ownership proof from the person you are renting from and try to use a traceable method of payment such as a transfer directly into an account in the owner/leaseholder’s name. I’m curious to know what happened when you showed up to check in to the apartment. If this person had access to show you the apartment and he isn’t in fact the tenant/owner, he might either know the tenant in the apartment he showed or be connected with the building in some capacity to have had such access.
Thank you for including your personal experience, I’m sure it will be a wake-up call to others. The more we expose these scammmer’s ways, the more difficult it will be for them to get away with it next time…
Linda
New York Habitat Legal Department
July 30th, 2009 at 10:46 am
I was scammed for a 600 EURO ($800 USD) deposit
I should have thought thru - if it is too good to be true, it is…
I was scammed by a Craigslist ad,
First - the person was saying he was trying to save me money by not going thru a broker.
Second - The pictures had been copied off a broker’s website and the file names had not even been changed.
Third - his paypal email account was not the same as his yahoo mail account. He said he did this for business reasons.
Forth - Paypal is not like a credit card, it is more like a cashiers check.
Here’s how the scam worked, I sent in the deposit to save the apartment, because he had someoneelse ready to also put down a deposit but I was his “preferred” renter. This set the hook, and made me move fast so I wouldn’t loose this rental.
I sent in the deposit via Paypal and noted on the paypal payment all of the details of the rental agreement.
The paypal account holder, a third party, took the deposit money and sent a Western Union check to Nigeria. The third party was paid a 10% processing fee to do this for this person in Nigeria that was not able to set up a US paypal account.
When I realized I was scammed, just a day after the check had cleared from Paypal, I was not able to do anything.
I did go to paypal and filed a claim, which they researched. They agreed with me, but, because the money was not in the other person’s account, they could not get it back. Paypal is not like a credit card, it is a clearing account for funds. After the funds have cleared, like a check, a stop payment can not be made.
Lesson learned to research the email addresses on google, and facebook. I would have found that the paypal account was owned by someone in Washington state. I was able to get a hold of her at her office, but she does not have the ability to pay. I have filed an internet fraud against this person, also looked at a civil suit in Washington State. Both would cost me more time and money then what I lost in this lesson.
Next year, I will be looking to New York Habitat to rent an apartment.
August 4th, 2009 at 12:50 pm
Thank you for sharing your story, Bruce. Let it be a wake up call to other people out there to do their research before sending someone their hard earned money for an apartment rental.
It seems you had some doubts along the way when things didn’t quite seem to add up. One piece of advice I stand by is to trust your intuition!
The scam you mention is a typical one I have seen many times, where the scammer copies pictures from legitimate sites and funnels funds through other people’s Paypal accounts.
I tend to question whether these people accepting payments on behalf of someone they don’t even know in Nigeria and then forwarding them the money (and don’t forget — getting a cut of it )are really all that clueless. Just Google “Nigerian rental scam” and you’ll find information about this scam all over the web.
Maybe if we start holding these people responsible they’ll be a little more selective in who they agree to transact business with. In the meantime, use the Internet to expose them and get the word out. And of course…send me your tips and advice so I can add it to my Blog!
And remember, if you choose not to go through a broker, travel agent or well know company for a vacation rental, buyer beware!
Linda R.
New York Habitat Legal Department
August 4th, 2009 at 6:44 pm
I just found out a few hours ago that I was a victim of an apartment rental scam. I reported the incident to the web site you mentioned above. I also let craigslist know about it, but I know there isn’t much they can do.
Craigslist does a good job of warning you BUT I didn’t click the link on “how to avoid scams” because I am too trusting and I guess naive.
I lost $900. I wanted to report it to the NYPD but after reading these responses I don’t think it will be necessary.
I am worried about identity theft now - they have my home address and cell number. Should I be worried about that?
Thanks for listening. I’m just sick about this! And I’ve cancelled my trip as well.
August 7th, 2009 at 7:21 pm
The risk of identity theft would depend on how much personal information you provided to the person you were in contact with. You should never give social security numbers or bank account information. Some of the latest rental scams ask victims to fill out phony rental applications where they provide social security numbers, background, and financial information to supposedly get “approval” for the rental.
While some buildings do require this information for credit checks on long-term rentals and sublets, you should avoid providing this type of information to anyone other than licensed agents or brokers or to the building Management Company directly.
To find out if your identity has been stolen, monitor your accounts and bank and credit card statements each month, and check your credit report on a regular basis. The more vigilant you are in doing this, the quicker you will spot suspicious activity, which will help you report it before it gets completely out of control.
If you have provided the scammer with very sensitive information, you may want to file a complaint or police report even if your information has not yet been misused. Reporting the incident may help if your information is misused in the future and you need to prove the date or circumstances of the incident.
Linda R.
New York Habitat Legal Department
August 14th, 2009 at 12:20 pm
On the subject of rental scams, I wanted to post an excerpt from a letter one of our clients sent to the Mayor of NYC with a thoughtful suggestion on preventing rental scams:
——
December 6, 2007
Mayor Michael R. Bloomberg
City Hall
New York, NY 10007
Dear Mayor Bloomberg:
I am writing to you because I think that the City of New York has an opportunity to prevent apartment rental scams in our City.
My first observation as I searched New York City’s travel related pages (i.e. NYC & company; and NYCtourist.com) to see what was listed under accommodations, I noticed that only hotels were listed and there were no recommendations for Bed & Breakfasts, or apartment rental services. […] Paris, France provides a much better service for travelers to their city. When I click on Parisinfo.com (Paris’ official information site) they not only provide hotel listings, broken down by neighborhoods, but in addition, list Bed & Breakfasts, at least 28 Apartment rental agencies, and a few apartment exchange connections.
I recently traveled to Paris last Fall, and decided to economize by trying an apartment rental. Not being able to speak French, I researched rentals from New York City, rather than Paris, and found an organization called New York Habitat. They are members of ASTA (American Society of Travel Agents); licensed by the State of New York; participant of BBB (Accredited Businesses) and its reliability program (BBB online). […]
I believe it would serve New York City very well if a compilation was made of legitimate organizations such as New York Habitat, who provide a very important service for travelers to New York City, especially those traveling with families. There are also many Bed & Breakfast establishments in New York City that can only be found by word of mouth. It would be helpful if tourists could see those names listed on the City’s websites.
I was happy to learn that CBS aired another program showing the good side of New York rentals, and New York Habitat was profiled. […] if sufficient information had been available through New York City’s many websites, then tourists visiting the Big Apple would know they had a reliable source to seek accommodations within their budget […]And more important, the tourists seen on CBS’s broadcast would not have been scammed.
Sincerely,
Josephine L.
September 14th, 2009 at 2:14 pm
I’m a landlord and I have seen more evidence of this coming up as more people try to do everything over the internet. You should never send money to anyone site unseen. Especially with all the rental scams currently going on.
Bill
http://www.investors.housez.ca/blogroll/rental-scammers-explained/
September 15th, 2009 at 3:48 pm
I received an email in German from one of our blog readers with questions on rental scams that I thought I would share below.
——————————–
READER QUESTION (translated from German)
“I now turn to a broker because I’m not sure certain apartments exist.
Is it usual in Paris to pay a deposit and the rent whilst I have not as yet seen the apartment and I can’t be sure that I’ll get the keys? What’s the use of a pre-contract (preliminary agreement)? How can I make sure that I
won’t be cheated? The rentor did send me 15 photos but I’m very skeptical as to whether this man really exists. The odd thing is that he is staying in leek/Great Britain and only wants to come over once he’s sure the deposit is here. Are there then ways to deposit money.
I have now responded to an ad twice. There have been email communications. But it was each time the same. First pay, then see the apartment. This does not look serious to me.
This is my contribution to your blog and I would very much appreciate an honest answer. The apartment rental is for my son. He is a student in Paris and is desperately looking for something.
Many thanks,
Kindest regards
Gabi
——————————-
REPLY
Dear Gabi,
Whenever possible, it is a good idea to ask to physically visit the apartment. You should not have to pay anything just to view an apartment, payment should only be made when you agree to rent the apartment. If you agree to rent without viewing the apartment, you take the risk.
Often it is not convenient or even possible for the renter to view an apartment beforehand if they are renting from a distance. In that case the safest way to proceed is to go through a broker or property management company. They verify the legitimacy of the apartments they list and
have visited the apartments themselves. There are too many scams out there, sending money to someone you don’t know is just too risky.
The only way I would rent an apartment I’ve never seen through an individual is if no money was due upfront. This situation is rare though, since most owners ask for a certain amount up front to secure the reservation even if they are renting out their property through an agency. Owners want a guarantee against clients cancelling and leaving them with lost rental income. Property owners who are out of town or reside elsewhere would be wise to hire a property manager who manage rentals and show the property to prospective tenants.
If you are renting through an agency a pre-contract is basically your proof that you have reserved the property. Should any unforeseeable events prevent the rental from happening, your cancellation and refund terms will be explained there. However, a contract is only as legitimate as the party you are contracting with. If you are relying on a contract with an individual you have never met, you have no way of really verifying if the person is who they say they are. Scammers often use contracts to make
the rental look legitimate but these contracts end up being useless if you find out you’ve been scammed.
While some people are willing to take that gamble with their money, I say it’s better to be safe than sorry.
Sincerely,
Linda R.
New York Habitat Legal Department
September 25th, 2009 at 5:54 am
Can I also suggest searching the company or persons name on the Internet? I did this before confirming an apartment with someone recently and discovered many people had recommended not going with the company because their deposits had been stolen. Dodged a bullet there!
January 12th, 2010 at 3:20 pm
Hi
I rented from real company but this company scam me to,when i came to rent last year the leasing agent told me that they run special now 1 month free month was Febuary,when i came to sign lease i was expecting 1 month upfront but she told me that i get first and last mont half which was fine with me ,when my last month came they denied everythingand ask me for proof .When you think you can trust people ,they will take advantage of you.The worst thing is that they still run this add.
January 13th, 2010 at 6:41 pm
It seems that although the company you rented from may have been “real”, they were not very reputable. That’s why it is always important to check and make sure any special offer, specific terms, discount, or just about anything promised to you to induce you to sign the lease is actually written into your lease. Otherwise the written lease trumps any verbal agreement you may have had. Always get it in writing!
February 23rd, 2010 at 9:46 am
Rental scams are widespread all over the world. People should be very careful nowadays. Thanks for helpful tips.
February 25th, 2010 at 9:39 pm
Hi, we’ve just been scammed by a person renting an apartment in nyc on the Craigslist website. We feel so dumb that we were taken for a ride. Judging by google street view I doubt whether the building ever existed! initially we were asked to wire 30% deposit into his “accountant’s” bank account. At his insistence a month later we stupidly wired another 30% deposit into another account under another name. When he asked for the full balance now instead of on arrival we pulled out and requested a refund..guess what…haven’t heard from him since. Lesson learned. Hope these postings help out other innocent people before they to part with their hard earned cash.
March 3rd, 2010 at 12:01 pm
Checking Google maps to verify the address is a good starting point, while not 100% definitive, at least you can weed out the scams that don’t even use a real property address.
Since scammers do not use their own accounts but run the money through other people’s accounts, what you typically see is that they tell you to deposit money into the account of a person other than the property owner, especially their “accountant” or other “business partner”. If that account happens to be in a different country from where the property is located, that’s red flag number two.
Changing payment terms from what was originally stated and agreed to is also suspicious. Many times when the scammers see how easy it was to get you to send money in the first place, they get greedy and try to get even more.
When he asked you to transfer money yet again and gave yet another different account name, that should have really raised some concerns.
We all know the saying “hindsight is 20/20″ and when you take the time to look back on something after the fact it all seems so clear (and clearly a scam). So, instead of regretting it afterward, be proactive, stop and take the time to really think things over before sending a dime to anyone. Do some research, speak with the person over the phone, test their knowledge, ask a lot of questions, ask directions on how to get there, ask about the nearest public transportation, and verify it all on a city or subway map etc, ask them what their relation is to the property they are oferring, and if you get an uneasy feeling about any of the interaction, trust your intuition and do not proceed.
If you do a little fact checking beforehand you won’t end up with an empty checking account afterwards.