Beware! Fake Craigslist Ad Drains Family's Savings in Rental Scam

Rental scams are unfortunately quite common, especially when using sites like Craigslist to find housing. Scammers will take advantage of desperate renters to steal their money. Here is a story of one family that fell victim to a rental scam, and tips on how to avoid them.

Please note that to protect user privacy, the name and other information has been generalized.

A mother and daughter’s nightmare

An old friend recently shared a horrible experience his friend “Jane” and her teenage daughter “Emma” went through after answering a rental ad on Craigslist. Jane was a single mom struggling to pay rent on their apartment. Money was very tight.

She came across an ad for a house being rented for around the same price as their apartment. The pictures looked great and it had a nice backyard. Jane called the supposed landlords, who seemed legitimate. She scheduled a showing.

When Jane and Emma arrived to see the house, it looked just as nice as the pictures portrayed. Jane agreed to rent it, as it was an incredible deal. The “landlords” had lease paperwork and even collected a cash deposit equal to first and last month’s rent. This depleted nearly all of Jane’s savings.

Excited, Jane and Emma showed up on move-in day with a rented moving truck. But when they arrived, the street was lined with over a dozen other moving trucks and a crowd of confused people standing outside the house.

It turned out the “landlords” were actually tenants who were being evicted. They scammed dozens of families by posting fake rental ads, collecting deposits in cash, and then disappearing with the money.

Jane and Emma luckily were able to get their apartment back since it hadn’t been re-rented yet. But they lost all their savings to the scammers, who were eventually caught. It was a hard lesson about rental scams.

Common Rental Scams to Watch Out For

While Jane’s story is an extreme example, rental scams using Craigslist and other sites are quite common. Here are some typical scam scenarios:

Fake rental ads - Like Jane’s experience, scammers will often re-post ads for homes that aren’t actually for rent. Using copied photos and fake names, they collect deposits and first/last month’s rent from applicants on homes they don’t own or have rights to.
Phishing for personal information - Scammers may not even have a specific home in mind. They simply collect contact info and background check fees from applicants, pocketing the money.
Double-renting homes - Scammers will rent out the same home to multiple applicants. Using excuses like repairs and delayed move-in dates, they can string along renters for months collecting multiple deposits.
Bait-and-switch - Landlords may switch out details, like rent amounts, before a lease is signed. Or they may show applicants one home, but move them into a less ideal rental after signing.

Warning Signs of Rental Scams

While scams may differ, there are some common red flags to watch out for:

Rentals that seem too good to be true for the location and size. Scammers lure applicants in with amazing low rents.
Being asked to pay deposit and fees before meeting or signing a lease. Major red flag of a fake listing if money is requested upfront.
Renters say they are out of state or country. Makes it easier for them to disappear after getting paid.
Properties are vacant with limited photos. Easier to fake postings without interior shots or furnishings.
Contact information doesn’t check out. Look up names, emails, and phone numbers to make sure they match the supposed landlord or agency.
Listing seems duplicated across multiple sites. Scammers will spam ads everywhere to cast a wide net.

Protecting Yourself from Rental Scams

Here are some tips to avoid getting scammed when looking for a rental:

Only rent from verified sites or agents - Stick to reputable platforms like Apartments.com that vet their listings and landlords. Avoid sketchy classifieds sites.
Search public records - Look up property records to confirm ownership if renting directly from a homeowner. Also check that there are no foreclosure notices.
Meet in person - Don’t provide personal details or money before meeting the landlord or agent in person at the property.
Read contracts thoroughly - Understand all terms and who you are paying before signing a lease. Get everything in writing.
Drive by the property - Scouting the neighborhood yourself can reveal red flags like vacancies, foreclosure signs, or differences from the ad.
Google the landlord - Search names, company names, phone numbers, and email addresses to uncover negative reports tying them to scams.
Pay by check or credit card - Never pay deposits in cash, wire transfers, or gift cards. Paying by check or credit provides protections and documentation.

What to Do if You Are Scammed

If you do fall victim to a rental scam, take the following steps:

Immediately stop payment if you paid by check or report unauthorized credit charges.
File police reports in the city where the property is located and where you live. Provide documentation of all correspondence with the scammer.
Report the scam to sites like Craigslist where the listing was posted to get it removed.
Contact your bank and explain the fraud. Your bank may be able to reverse payments in some cases.
Check if payments can be recovered through your credit card issuer chargeback policies.
Consult a lawyer about additional options, depending on details of the case.
Report the scam to the Federal Trade Commission (FTC). The FTC tracks and prosecutes scams.

Hey if you want to beware of other scams , read our scam guides.

Beware! Fake Craigslist Ad Drains Family's Savings in Rental Scam

Rental scams can unfortunately happen, especially when desperate renters jump on deals too good to be true. Being informed and vigilant when searching for a home is the best way to protect yourself. Use caution, do your research, and don’t provide money or details to just anyone. If it seems shady, walk away!