How Rental Scams Work

by | Dec 18, 2022 | Property Management, Renting

Rentals scams in Denver
scam alert

Rental Scam Alert

According to the Colorado Department of Regulatory Agencies, rental scams are rising. Typically, a fraudster posts a fake ad on social media or Craigslist to lure people looking to rent a property. These ads look professional, using pictures of a property pirated from real estate websites or Google. In reality, the con artist has no connection to the property, and fraud occurs when the wrongdoer attempts to get money under the guise of a rental transaction.

Tenant Tips That It Is a Con

  • Something is wrong if the property manager cannot show a tenant the property.
  • The property manager cannot talk on the phone but would rather text
  • Ask for rent or a security deposit before signing a lease.
  • Look for typos and poor grammar in the listing.
  • No screening process is in place.
  • The property manager or owner is located outside the U.S.

According to DenCO Property Management & Sales, the renter should make sure they are dealing with the owner or property management company. The company should have a website, a business address, and a real estate license on file with the Colorado Division of Real Estate. It is common for a property manager to want to meet a potential tenant, show them the rental and go over the lease terms. Tenants getting pushback on these practices should be skeptical and avoid the situation.

Additional Tenant Tips

  • Ask for a tour, and do not rent a home or apartment without seeing it.
  • The rental rate is too good to be true.
  • Ask to speak to the property manager or owner.
  • Never send money before seeing the unit.

Common rental scams put potential renters at risk and can affect landlords. Property managers should be cautious of the following tenant behavior.

  • Willing to rent a property without seeing it in person.
  • Say they are out of the country and want to send a cashier’s check.
  • Never accept or deposit a payment that is more than the agreed-upon price
  • Avoid tenants who are in a hurry and trying to create an emergency.
  • Ignore calls that claim they sent money using Apple Pay or other quick pay methods and want a refund.
  • Refuse wire transfers or gift cards to pay the deposit or rent.

Screening Process

The best safeguard against fraud is using a formal tenant vetting process with screening. Property management companies should screen all potential tenants before a lease is signed. They authorize the property management company to investigate their credit, employment, rental and criminal history based on their social security number. By submitting a rental application, the future tenant warrants that the information provided is true and correct. Renters should avoid properties where there is no screening process in place.

Owners who want to off-load the tenant vetting process should consider hiring DenCO to rent their properties to responsible tenants. Please call 303-722-9688 or fill out this form on the contact page.