Finding a new home is an exciting process, but it's important to be vigilant to protect yourself, your finances, and your personal information from potential scams. Housing scams are on the rise, and they can be incredibly sophisticated. By knowing the red flags and following a few key practices, you can significantly reduce your risk.
Your sensitive information is a prime target for scammers. Never give out personal or financial details, such as your bank account number, Social Security number, or PayPal information, to anyone who contacts you over the phone. A legitimate company will not ask for this information in an unsolicited call. For example, AffordableHousing.com does not store credit card information and will never ask for your Social Security number. You will also never receive a phone call from them requesting a payment or to verify personal information.
One of the most effective ways to avoid a scam is to have a face-to-face meeting with the property owner or manager. This allows you to confirm their identity and the legitimacy of the property. Be extremely cautious of anyone who only wants to communicate via email and is unwilling to meet in person.
Before you exchange any money, you must confirm that the person you're dealing with is the actual owner or a licensed agent of the property. Always insist on viewing the property in person before making any payments. You can take your verification a step further by checking with the County Assessor's office to confirm the ownership of the property. If you have any doubts about the agent's representation or ownership, contact the local Public Housing Agency (PHA) before sending any funds.
Be skeptical if you encounter any of the following situations, as they are common signs of a rental scam:
Security deposit requested before a viewing: A legitimate landlord will not ask for a security deposit before you have had the chance to see the property.
Western Union or MoneyGram transfer requests: Scammers often use these methods because they are difficult to trace. Never wire transfer funds to an unknown individual.
Price seems too good to be true: If a property's rent is significantly lower than comparable homes in the same neighborhood, it's likely a scam.
Owner is out of the country: Be wary of owners who claim to be from another country and request that a deposit be sent to them.
Communication is exclusively via email: Legitimate owners and agents are typically willing to meet in person and provide a phone number for contact.
Your vigilance can help protect others from becoming victims. If you suspect fraud, report it immediately. You can contact AffordableHousing.com by calling their toll-free number (1-866-466-7328) or sending them an email. Additionally, you should report the fraud to the FTC's toll-free hotline at 877-FTC-HELP (877-382-4357). By working together, we can make the internet a safer place for everyone searching for a home.
