Guide on navigating rental scams released by state
Apr. 11—The New York Department of State's Division of Consumer Protection has released a guide with practical tips to help New Yorkers identify and avoid rental scams.
"In today's highly competitive housing market, renters are often targeted by scammers who use enticing offers to steal their hard-earned money," Secretary of State Robert J. Rodriguez said. "Finding a place to live can be stressful enough without the added worry of being scammed, so I encourage New Yorkers to follow our tips and learn how to spot a potential scam when looking for a new residence."
The guide is part one of a five-part consumer alert series to help New Yorkers navigate housing scams, which are a continuously growing risk for consumers. In 2022, the FBI received 11,727 real estate/rental scam related complaints with losses of over $396 million, an 86% increase compared to 2020.
Looking for a rental home or apartment can be an expensive and time-consuming process, and as the cost of living continues to increase rental scams are becoming even more prevalent.
To prevent a costly mistake, below are key tips on how to identify and avoid rental scams:
—Confirm that the rental listing is legitimate and verify the source of the listing. Scammers often post fake listings of properties that are not on the market, or may copy a photo or description of a property from another source to use in their ad.
—Visit real estate websites and see if the rental you want is also listed in another city or available on another website with a different email address.
—Run a reverse image search and see if you can find that listing anywhere on the internet. There are many reputable free online reverse image search platforms. If you find an identical listing with a different email address, that's a red flag that it's a scam.
—Inspect the Premises. Avoid completing background checks, signing a lease agreement or paying any advance fees or deposits before having an opportunity to inspect the premises.
—Be suspicious if asked to use payment methods that are untraceable. Scammers generally conduct transactions by phone, text message or email and often ask for a wire transfer, prepaid debit card, payment on a cash-based app or other method of payment that is not traceable.
—Request everything in writing. It is always better to leave a paper trail. Real estate professionals are required by law to provide you with copies of all instruments relating to the transaction.
—Don't give in to high-pressure sales tactics. Scammers may urge you to rent quickly before someone else gets the property, prompting you to possibly miss an important step in the evaluation process.
—Protect your privacy. Scammers often request personal information and money for background checks, then disappear. Refrain from providing personal information or your social security number unless you are absolutely sure you are dealing with a reputable business or agent.
The New York State Division of Consumer Protection provides resources and education materials to consumers, as well as voluntary mediation services between consumers and businesses. The Consumer Assistance Helpline 1-800-697-1220 is available Monday to Friday from 8:30am to 4:30pm, excluding state holidays, and consumer complaints can be filed at any time at www.dos.ny.gov/consumer-protection.
