Although technology has made it easy for businesses to reach their customers widely, there are also drawbacks resulting from this ease.
You can surely save a lot when you advertise your rental property online and can also attract plenty of potential residents. However, you also need to be wise since online scammers abound and can ruin your business reputation.
Posting your rental property ads can get the attention of a lot of scammers knowing that inquiries from prospective renters are certain to pour in. Typically, scams occur in the marketing phase of your property business.
You need to become more aware of the modus of rental scams to prevent them from happening to you. When you are alert to the signs, you can avoid the risk of losing money and the trust of potential tenants.
How an Online Scam Works
Your Ads are Posted by a Scammer on Another Site
When scammers spot attractive rental property photos, they can steal them to generate attention from prospective renters.
Once they receive inquiries, they act as if they are the landlord and interact with the potential resident. They make sure that they entice the victim by responding positively and making too-good-to-be-true offers, such as a low rental amount.
Potential Tenants Are Encouraged by Scammers to Pay Right Away
The most important thing for con artists is to receive money from their victims, so they strategize on the best way to make the victims part with their money immediately.
Pressure is applied for the prospective renters to make a deposit or a reservation fee. They would lie and say that a lot of interested parties are checking out the unit to create a sense of urgency.
The Tenant Finds Out About the Scam
After getting the rental deposit or reservation fee, the prospective tenant may notice the frequency of the communication from the “landlord” has slowed down or stopped. The renter may suspect that something is not adding up and may feel stressed since they have already made a money transfer.
Once they don’t hear from the person who pretended to be a landlord, they will discover that they have become the victims of a scam.
Sometimes, the tenant may still give the benefit of the doubt and may head to the rental space to get rid of their misgivings.
Once it is confirmed that the money was paid to a scammer, they can assign blame to the real landlord who has nothing to do with the scam. Because of this, the rental business can be subjected to negative feedback.
Though the real landlord is also a victim in this situation, the prospective renter can make pronouncements and shift the blame to the landlord. Naturally, this can lead to long property vacancies which can reduce your return on real estate investments.
If you ignore these scams, your profit can be affected in the long run. It is best to be aware of and report these scams so more prospective renters are protected from these incidents.
How Tenants Can Avoid The Risk of Becoming Victims of a Scam
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Check out the rental unit in person before making a deposit. Images can draw us in, especially when the proposed rental rate is lower than what we expect but it is not advisable to pay a reservation fee for a rental you have not physically toured.
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Do your due diligence by researching the owner of the rental space you are interested in. Always verify online information to ensure you are dealing with the right property owner.
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Find time to contact the existing and former residents of the rental property. This is a good way to find out if the rental is available and the marketing is legitimate.
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Research if the rental location is real before negotiating with any landlord and making payments.
How to Recognize An Online Scam
It pays to notice the signs of rental property scams to prevent the potential losses and stress that come with it.
Here are some indicators of a scam:
- The price of the rent is generally lower if you factor in the attractiveness of the location. If an area is affluent, then most likely the rental fees are higher than the average rental spaces. If not, then it pays to be suspicious.
- You notice that the landlord is often unavailable when you contact them for a physical property viewing. Most property owners will clear their schedule to accommodate a rental visit for prospective renters.
- The fee for reserving the rental is often high.
- The scammer will ask for personal or financial information that is out of the ordinary.
Best Way For Landlords To Safeguard Their Rentals From Scammers
It is easy for landlords to succeed in the rental industry if they engage the services of an excellent property management company like State Property Management who often has solid systems, tried-and-tested strategies, and more resources.
Property management companies can collect the rent, maintain the property, screen tenants, market vacancies, and more. Additionally, property managers limit scams from happening to you.
Bottom Line
Online scams can lower your income and hurt your business reputation. That is why landlords must know how online scams happen. If you lack the time to actively monitor your rental space, consider hiring a dedicated property management company.
Choosing the right property manager who can help you succeed in the competitive business of property rentals is essential.
With State Property Management, we have the solid experience and professional skills to take care of your rental properly. Under our guidance, you can trust us to prioritize the health and reputation of your rental business.
If you’re seeking a trusted property management company, contact State Property Management today!