Avoiding Rental Housing Scams During PCS Season

Military families move all the time, so they get familiar with the renting process and having to make relatively quick decisions when it comes to housing. However, rental property scams are common, and there is plenty of money to be lost – not to mention the lost time and the extra spent finding legitimate housing after falling victim to a scam.

Common rental housing scams look like this: A property is advertised online and looks legitimate, but either the person who listed it doesn’t actually own or manage that property, or the property doesn’t actually exist. The listing is filled with stock imagery that grabs the renter’s attention and makes a compelling listing. Then, the “listing agent” or “property manager” will quickly ask for payment via Venmo, Zelle, CashApp, wire transfer, gift cards, etc. They express the urgent nature of transferring the funds, and demand that payment arrive before the renter actually gets to their new duty station – so that they can disappear with the funds before having to pass over a key. From there, the renter is generally out of luck – and out of money.

Fortunately, most rental scams are observable, and once you know that something exists, you can avoid it. Consider the following tips.

Common Signs of a Scam

• The listing language isn’t quite right, including typos and/or grammatical errors. If may sound like it’s written in broken English or contain too few details to pass for a full listing. If you reach out to the property manager, you may encounter similar errors in those communications. Quality property managers, real estate agents, and legitimate landlords are going to make the effort to produce quality listings and communicate effectively and without typos.
• The price is too good to be true. Do a search for other apartments or houses in the area – if the property that you’re considering is significantly underpriced compared to others that you find, chances are it should be avoided. Look at a description of the amenities, too. If there are five bedrooms and three bathrooms, you’re unlikely to pay only $1,000 per month. Use your common sense – if something seems unusual, it’s right to be suspicious.
• The property manager wants a deposit, application fee, and/or the first month’s rent very fast. You may be told that there are other interested parties, and that to secure the lease you need to send payment now. You should never send funds without first reviewing and signing a rental agreement. If you feel a sense of excessive urgency or pressure, you may have encountered a scammer. Legitimate property managers are typically unconcerned with giving you a few days to review the paperwork. Further, if you are asked to pay using any form of cash, including gift cards, app payments (including Venmo, Zelle, and CashApp), or wire transfer, it’s time to walk away. These forms of payment offer few to no consumer protections, meaning once someone else has your money, you’re unlikely to get it back, no matter the circumstances.
• You’re not asked for a background check. When renting a property, it’s very common for the property manager to ask that you undergo a background check before being offered the lease – this is because they want to make sure that you have a history of making on-time payments and haven’t had any entanglements with the law. If a property manager seems inclined to skip the background check in favor of you immediately providing payment, it’s time to look elsewhere.

How to Stay Protected When PCSing

Fortunately, keeping yourself safe when looking for a new rental property comes down to common sense. If something feels wrong in your gut, you’re probably right! Approach rental listings with skepticism and use the below tips to keep your family and your finances safe.

• Use Google to your advantage.
  • Google Street View allows you to see what an address looks like when being viewed from the street, even if you can’t get there to see a property in person. If you’ve found a rental unit that interests you, and you like the photos in the listing, do a quick Google Maps search and check out the Google Street View – does that view match what’s shown in the listing?
  • Property managers may list an available property across multiple websites. Once you’ve found an address that interests you, Google it to see if multiple listings pop up. Then, do a little digging – do they have the same rental company or property manager listed, or are there multiple names? Do any of the websites say that the unit is off market? Listings should match across different websites, and when they don’t, you could be venturing into problematic territory.
• Refuse to make quick cash payments.
  • Don’t use cash to make an “urgent” payment – especially when it is untraceable or irreversible (wire transfers, gift cards, actual cash). If possible, use a credit card (which offers more consumer protections in cases of fraud than cash transfers do). Once established as a tenant, it should be safe to make rental payments via money order, ACH transfer, or through an online payment portal (especially if living in an apartment), but make sure you have access to the property first.
• Get a second opinion.
  • Once you obtain a lease agreement from the property manager, read it from cover to cover. This will help you understand the terms of the rental, including the length of the rental and payment details, conditions surrounding the security deposit, a description of the property and maintenance responsibilities, and any other information relevant to your new home. If you’re unsure about anything, reach out to the Legal Assistance Office on base and ask someone there to take a look at the lease agreement for you before you sign.
  • Google Street View only goes so far – when you’re moving to anew area and checking out properties, the best thing you can do to get a feel for them is to visit the property. If a landlord refuses to show you the property, you may have stumbled upon a scam. Of course, it isn’t always possible to get to your new duty station ahead of time to sort out housing. If you cannot visit the property yourself, ask if a local friend or acquaintance can do a drive by or visit on your behalf.
• Look for legitimate resources.
  • If you’re not dead set on living in a single-family home, consider an apartment. Instead of finding a rental listing online and working with the stranger behind the listing, you can go right to the apartment’s website to apply online and make payments. In this sense, apartment living may be advantageous when it comes to avoiding rental scams.
  • If you’re more interested in buying than renting or are looking to sell your current home before your move, MilHousing Network might also be a good resource to consider. Founded by military spouses, they offer concierge real estate services to PCSing families across the military community.

If you encounter a rental housing scam, it’s important to report it to the Federal Trade Commission and the FBI’s Internet Crime Complaint Center, both of which have online complaint forms. If you made a payment to the scammer, contact your bank to try to halt any pending disbursements. You can also contact your local law enforcement agency and file a police report. Finally, contact the website on which the fraudulent listing was posted; these companies have a vested interest in preventing scammers from using their name to commit crimes.