Landlords, Protect Yourself From Online Housing Scams.
Online scams are real and anyone can be a victim. Even a landlord. Regardless of the platform, landlords always need to be vigilant and aware of how to spot a scam rental application.
Here are some red flags to look for when screening a potential tenant:
- The “Overpay” tactic
The renter will ask to send a check to the landlord for an amount larger than the deposit, and in turn ask for a wire transfer of the difference. - Asking for any money transfer to the tenant
As a matter of fact, landlords should never send money to a prospective tenant for any reason. - Mismatched emails between accounts
If the email listed on their Furnished Finder account is different than the one they want to use to communicate, this may be an indicator that they are not a legitimate renter. - Desire to speak outside of the platform
Potential tenants who are reluctant to communicate via our app may wish to avoid tracking their activities. Use discretion with where and how you speak with renters. - Poor spelling and grammar
A good rule of thumb for any online transaction is that scammers will often use poor grammar. This is another tactic to determine if the person they are targeting is easy to fool--they know it is a red flag so if you miss it, they are encouraged to continue to target you - Requesting to skip part of the screening process
All landlords should have a specific screening process in place. We recommend that you screen every tenant, every time. This helps save you time and headache. Anyone who is not willing to comply with your process should not be eligible to rent from you.
Pro Tip: To make screening potential tenants easier on landlords, Furnished Finder has partnered with Keycheck to provide free credit and background checks as well as lease templates.
Below is an example of the common “Overpay Scam” --
a potential tenant asking you to return money from a check they sent.
It starts with a foreign traveler who communicates via email, provides way too much information to try to seem “real”, and starts introducing elements of their scam immediately:
“Hi _______,
I am glad to hear the room is still available. I will be needing the room by June. My Name is ______. I'm a Female young lady,I speak English and understand little Chinese, am single, and respectful of others,i don't drink and don't do drugs neither do I smoke. My Mother is from Canada while my Father is from China but resides in Canada. I was born in China and I attended University of Waterloo. I graduated last year.
I'm coming for a long term stay and i'm ready to sign 6 month to 1 year lease as soon as I get there but am presently on research work at Guam and will be coming for my master's degree in June but I'll like to move in anytime because I have to do so many things before we resume fully for school. I'll like to pay for the deposit and a month rent. I would have loved to set up a time for viewing but due to distance, I'll appreciate some more available Pics of the room though.
Please I'll love to know a little about yourself too. Also ,just to let you know that I have a car and would need a garage,Have you got one or a parking space?,Do let me know the total amount for the first month rent and deposit. Also, just to let you know, I am super clean,neat and tidy.
Thank you
They mention the two most important elements of their hustle in the intro email:
- Paying a deposit
- The car situation
Here is a follow up email after the landlord had replied:
“Thank you for the information. I will wait to receive the lease.
Regarding my Car. I'm planning on having it delivered to you before my arrival so that you can help to come and pick me up at the airport and settle in comfortably, so I am making arrangement with the car dealer agents to deliver the car before my arrival. Once the rent and security deposit has been received, I'll ask you for a favor here, can I rely on you to take delivery of the car for me when it's delivered ? I'll like to know the convenient time for you to receive the car. As you'll be handling the delivery of the car along with the deposit, the car and my luggage delivery money will be included on the payment coming to you.
I'll really appreciate if you can do this for me and promise to compensate you adequately for your time and efforts on my arrival into your place. Please kindly Let me know if I can trust you to have the car Dealer's fund sent to them once you get the check and have deducted the rent and deposit, I will be expecting your e-mail as soon as you receive this. Thanks so much for your understanding.
Kind regards”
The Hustle Is On
You’ll notice the “applicant” is now getting more bold and demanding in their approach because they realize that the landlord isn’t taking control of the process (which is exactly what they’re looking for). This is why having a screening process and sticking to it is key to avoiding scams.
Had this scenario played out, the “renter” would send a fake check with more than the deposit to you. Then, they would request that you pay the “delivery person” out of your pocket while waiting for the check to clear. Spoiler alert: that check is not going to clear.
If you receive communication that sets off alarm bells and red flags, simply stop communicating immediately. Block the phone number and email address, and go about looking for a legitimate tenant for your rental.
Landlords, as well as travelers, have to be vigilant regarding online housing. We strive to protect our landlords as much as possible and provide resources like KeyCheck to help you avoid scams, but knowledge and vigilance is the best defense you can have.