Rental scams have been an increasing problem in real estate, and a new report from Apartment Guide breaks down which states are experiencing the highest rates of fraud and how much consumers stand to lose.
The details:
– Most rental scams were reported in January; however, the biggest losses happen in the spring and summer months. May ranks at the top with most money lost at a median of $19,991.15 from 2016 to 2020.
– These five states reported the highest percentages of rental scams: Idaho, Hawaii, California, Colorado and Oregon.
– The following states had the lowest rate of rental scams: Iowa, Arkansas, South Dakota, Connecticut and Wyoming.
– The median loss from rental scams, which does not include those who did not lose money, was $640.
The takeaway:
There are several warning signs to look for. They include:
– A landlord asking you to sign a lease without seeing the property (and not offering a virtual tour)
– A landlord asking you to wire money or send cash for payment
– A landlord imposing excessive fees (more than about $75) for a background check
Prospective renters should be proactive and stay vigilant by:
– Using a reputable website or agent when apartment hunting
– Understanding the market rate
– Searching for reviews if speaking with someone purporting to be an agent or property manager
– Reviewing the property on Google Maps to confirm the provided information is correct and the listing is real
– Looking out for duplicate listings
To read the entire report, click here.
Liz Dominguez is RISMedia’s senior online editor. Email her your real estate news ideas to lizd@rismedia.com.
