Rental scams have cost consumers $65M since 2020

A new analysis from a consumer-focused federal agency has revealed that rental scams are an ongoing issue for renters.

The Federal Trade Commission, which protects consumers from unfair business practices, reported Monday that it’s received nearly 65,000 reports of rental scams since 2020, costing consumers around $65 million. More troubling, the Federal Trade Commission said, is that the loss totals are likely much higher since most consumers don’t report rental scams.

“When you’re looking for an apartment or vacation rental, you’re probably looking at price, location, and amenities,” the commission notes on its website. “Scammers know that, so they make up fake rental listings they know will grab your attention – and money – before you discover there isn’t a place waiting for you.”

The commission noted that Facebook (51 percent) and Craigslist (16 percent) combined for 67 percent of all scam rental listings.

The Federal Trade Commission found that the age group most susceptible to scams isn’t baby boomers or octogenarians, as stereotypes would have it, but renters aged 18 to 29.

“People ages 18 to 29 were three times more likely than other adults to report losing money to a rental scam,” the commission said in a press release about its analysis.

Part of the reason why Gen Z, in particular, may be victimized more often is that they are the only renter-majority generation and will become the “largest renter demographic” by 2030, commercial rental lender Arbor reported.

Additionally, the commission’s data includes credit-related rental scams, and younger renters may be more susceptible in this area. Generation Z and millennials have the lowest average credit score compared to Gen X, baby boomers, and the Silent Generation, according to credit score bureau Experian.

Since rental applications typically require a credit check, scammers send applicants links to affiliate credit score sites that may enroll renters unknowingly in monthly subscriptions, the Federal Trade Commission said.

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If you come across a rental listing on Facebook, Craigslist, or another site, it’s important to go through a mental checklist, the Federal Trade Commission said.

First, do a quick online search of the address. If you notice the same rental listed on multiple sites at different prices or up for sale, you’ve likely found a scam listing.

Additionally, be wary of listings that require personal information or payments upfront before you see the property.

Finally, if the listing seems too cheap to be true, it probably is.

“If the advertised rent is a lot cheaper than most rents in the area, it could be a sign of a scam,” the commission said. “And if anyone pressures you to make a decision quickly to get a great deal, walk away.”