New York Department of State’s Division of Consumer Protection
For
this week’s “Tuesday’s Tips,” the New York Department of State’s Division of
Consumer Protection is sharing tips to help New Yorkers identify and avoid
rental scams. Rental scams are executed in a variety of different ways, but the
goal is the same: bilk potential tenants out of as much money as possible or
steal their personal information.
“In
today’s highly competitive housing market, renters are often targeted by
scammers who use enticing offers to steal New Yorkers’ hard-earned money,”
Secretary of State Robert J. Rodriguez said. “Finding a place to live can be
stressful enough without the added worry of being scammed, so I encourage
consumers to follow our tips and learn how to spot a potential scam when
looking for a new residence.”
Looking
for a rental home or apartment can be an expensive and time-consuming
process. Renters are often competing for limited housing or looking for
deals, and scammers are quick to take advantage of them. Rental scams do not
just harm renters, they can severely damage the reputations and livelihoods of
New York’s honest, hardworking real estate agents as well.
In
2023, the FBI received 9,521 real estate/rental scam related complaints with
losses of over $145 million.
To
help prevent a costly mistake, below are key tips on how to identify and avoid
rental scams:
- Confirm that the rental listing is
legitimate and verify the source of the listing. Scammers often post fake listings of
properties that are not on the market, or may copy a photo or description
of a property from another source to use in their ad. A few minutes of
research can prevent you from putting a security deposit on a fraudulent
rental or handing over your personal information. To verify if a rental is
legitimate:
- Search the location’s address. If ads come up for the same address, but
with a different owner, rental company or rent amount, that’s a sign it
could be a scam.
- Run a reverse image search and see if you
can find the listing anywhere else on the internet. Scammers may use photos from a legitimate
listing to create a phony one. If you perform a reverse image search and
find another listing of the home or apartment with a different address or
contact information, that’s a red flag that it could be a scam. There are
many reputable free reverse image search platforms online.
- Visit real estate websites and see if the rental you want is also
listed in another city or available on another website with a different
email address or contact information.
- Verify
the identity of any Real Estate Professional. Confirm that
the real estate professional you’re working with is licensed in New York
by following these steps:
- Visit the eAccessNY
Occupational Licensing Management System to look up their license.
- Conduct an independent online search for that real estate agent
or broker and call the office phone number to confirm they are the agent
handling the listing and to verify their contact information included in
the listing.
- Request to see a copy of the Department of State issued photo
license and arrange an in-person or video meeting to compare the ID.
- See what other people have to say. Look for complaints about
the company or agent.
- Inspect the Premises. Avoid completing background checks,
signing a lease agreement or paying any advance fees or deposits before
having an opportunity to inspect the premises.
- Be suspicious if asked to use payment
methods that are untraceable. Scammers generally conduct transactions by phone, text
message or email and often ask for payment by wire transfer, prepaid debit
card, money-transfer app, cryptocurrency, or other methods of payment that
are not easily traceable. Instead, pay by check or credit card and get
receipts for any payments.
- Make payments to the brokerage of record. In New York, it is unlawful for a real
estate person to demand a fee directly from the prospective tenant. Fees
are paid to the brokerage where the agent is associated with and the
broker pays the agent for their services.
- Request everything in writing. It is always better to leave a paper
trail. Real estate professionals are required by law to provide you with
copies of all instruments relating to the transaction.
- Don’t give in to high-pressure sales
tactics. Scammers may urge
you to rent quickly before someone else gets the property, prompting you
to possibly miss an important step in the evaluation process. While the
rental market is tough right now with low supply and high demand, remember
to be cautious about all the steps involved in a real estate transaction –
including carefully reviewing the lease agreement and verifying the
identity of those you are engaged with during the rental transaction.
- Protect your privacy. Scammers often request personal
information and money for background checks, then disappear. Refrain from
providing personal information or your social security number unless you
are absolutely sure you are dealing with a reputable business or agent.
The New York State Division of Consumer Protection provides resources and
education materials to consumers, as well as voluntary mediation services
between consumers and businesses. The Consumer Assistance Helpline
1-800-697-1220 is available Monday to Friday from 8:30am to 4:30pm, excluding
State Holidays, and consumer complaints can be filed at any time at www.dos.ny.gov/consumer-protection.
For other consumer
protection tips and consumer alerts, consumers can visit the DCP website or
follow DCP on social media via Twitter at @NYSConsumer or Facebook at www.facebook.com/nysconsumer
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