Rental scams are increasing across the U.S., with Houston among the cities hardest hit.
Here’s how experts say you can avoid losing money.
If you’re searching for a new apartment or rental home this summer, experts say it’s more important than ever to be on guard against rental scams.
According to the Federal Trade Commission, consumers reported more than 65,000 rental scam cases over the past year, with Americans losing more than $65 million to fraud.
Texas has been especially impacted. Dallas ranks first in the nation for rental fraud reports, with Houston close behind, making it critical for renters to verify listings before handing over money or signing a lease.
Experts say several factors are fueling the rise in rental fraud. More renters are searching for homes entirely online, often relying only on photos and virtual listings. Some even sign leases electronically without ever stepping foot on the property.
Advances in artificial intelligence have also made it easier for scammers to create convincing rental advertisements using fake photos and descriptions for properties they don’t own.
Real estate expert Mundi Wortham with Bumble Bee Property Management said the scams are especially common during the busy summer moving season, when demand for rental housing is high.
The Federal Trade Commission and housing experts recommend taking these steps to protect yourself:
- Be cautious of rental listings on sites like Craigslist, Reddit and social media.
- Instead of clicking links in online ads, search for the property’s official website yourself.
- Never send money, a security deposit or application fee before meeting with the property manager and verifying the listing.
- Never agree to rent a home, apartment or condo without visiting the property in person and walking through the unit.
Experts warn that today’s fake rental listings can look remarkably legitimate. Before signing a lease or sending money, verify the property, meet with the landlord or property manager and tour the home yourself whenever possible.