Houston renters beware: Fake ads cost renters thousands of dollars

Houston renters are losing hundreds, even thousands of dollars to rental scams that look legitimate but are designed to steal money and personal information.

KPRC 2 News reporter Amy Davis explains how these scams work and what renters should watch out for.

Fake rental ads trick renters with credit check schemes

Nearly 60% of Houstonians rent their homes, making rental scams a serious threat to many.

The Federal Trade Commission recently warned that people have lost $65 million to rental scams, with younger renters ages 18 to 29 falling victim more than any other age group.

How rental scams work

Scammers often use photos from legitimate rental listings but change the contact information. They pressure potential renters to pay money upfront before seeing the property in person.

Most fake rental ads appear on social media, with about half coming from Facebook ads in the past year.

Here’s more from the FTC about the trick’s thieves use:

• Pressure you for money upfront before you’ve even seen the place in person. They might say you need to pay an application fee, security deposit, or first month’s rent to “hold” the property.
• Say you need to show you’re creditworthy by sending screenshots of your credit scores. They send links to websites that let you sign up for a credit check, often for $1. You might not realize that enrolls you in a paid membership with recurring fees, or that the scammer makes money as an “affiliate” for each enrollment.
• Collect personal information to steal your identity. They tell you to complete an application with information like your Social Security number, a picture of your driver’s license, paystubs, and other personal details that they can use to steal your identity.

What renters can do to avoid scams

Experts advise renters to search the property address online to check if the same place is listed elsewhere with different prices or contact details.

Sometimes the property might already be listed for sale, which is a red flag.

Comparing prices with nearby rentals is also important. If the listing price is significantly lower than similar properties, it could be a scam.

Report suspicious listings

The FTC says renters ages 18 to 29 are three times more likely than other adults to lose money to rental scams.

To spot and avoid scams – and learn how to recover money if you paid a scammer – visit ftc.gov/scams.

Report scams to the FTC atReportFraud.ftc.gov. You should also fill out a police report.