Key Takeaways
- Rental scams are an increasing threat that can damage a landlord’s reputation and negatively impact property performance, even when the landlord is not at fault.
- Regularly monitoring your property’s online presence and using watermarked photos can significantly reduce the risk of scammers misusing your listings.
- Clear warnings, physical signage, and close oversight of vacant properties help protect both landlords and prospective tenants from fraud.
- Working with trusted platforms and professional property managers like Oklahoma Red Door Management is one of the most effective ways to minimize exposure to rental scams and safeguard your investment.
Managing a rental property is a lot of work, and as a landlord, you are always on the lookout for threats to the success of your investment property. Typically, most of these threats will come in the form of bad tenants, vacancies, and rising operational costs.
There is a different kind of threat that is becoming increasingly common, and it is one that most landlords do not even think about. This scam is known as a rental scam. What are rental scams, and why should you, as a landlord, care about them?
Picture this scenario! Someone in your city has been hunting for a new home to rent over the past few weeks. So far, all the properties they have seen were either overpriced or in a part of the city they don’t want to move to. That is, until now. Today, it seems they finally found the perfect place.
Photos of the property show a flawless home, just what they’ve been looking for. Even better, it is listed at the exact price point they are looking for. The only snag is that the landlord wants them to pay a deposit to secure the place and beat off the competition.
Since this sounds reasonable, they pay. A few days later, this person shows up in front of your rental property asking for the keys. This is where the problem begins. Your property is not vacant, you did not list it for rent, and you have not received any deposit money from anybody.
Only then does this individual realize that they have been scammed. When things like this happen, the landlord cannot be held liable for the actions of a scammer or the victim’s failure to verify the information. Having your rental property used in this manner can cast you in a very bad light.
Why? As they say, “real estate is local.” A lot of what people know about your rental properties is based on the information they got through word of mouth. If the people in your locality think you are a scammer, it could hurt the performance of your investments.
In this article by Oklahoma Red Door Management, we will go over how to recognize and avoid rental scams.
6 Tips to Protect Your Rental Property From Rental Scams
These tips will not eliminate the possibility that scammers will use photos of your property and your address for rental scams. However, they will minimize the risk, and they also make it harder for criminals to get innocent citizens to part with their hard-earned cash.
Step One: Search for Your Property Online
Enter your rental property’s address in Google to see what shows up. You may also use image search. The goal of doing this is to see if there are scam listings of your rental property and where they are posted. If you do find these types of posts, request that they be taken down.
Report the post as a scam, and if the poster refuses to take the listing down, engage in the comment section to alert others. Do this exercise at least once a month.
Step Two: Use Watermarked Photos and Videos
Watermarked photos and videos make it harder for scammers to steal your images. Watermark all media with your business name, logo, and phone number. You do not need special software to do this.
There are lots of online tools that will let you do this for free. Instead of going through the hassle of trying to remove the watermark from your photos and videos, most scammers will look for an easier target. Watermarks should be visible without obscuring the photo or video.
Step Three: Add a Scam Warning to Your Listing
Help potential renters avoid getting scammed by adding warnings about fake listings of your property. Make the warning prominent by using large text or a bold sticker.
Also include a list of red flags that potential renters can use to identify a rental scam, such as requests to deposit money via wire transfers using strange payment apps, advertisers that refuse or delay in-person viewing of the property, and prices that are too good to be true.
Step Four: Put a Physical Sign on Your Rental Property
Posting a physical sign on your property will make it even harder for scammers to use your rental in their dishonest schemes. The sign should say things like “This property is not for rent,” or “Beware of rental scam.”
The sign should include your company name, logo, and telephone numbers. Properties that have been vacant for a long time are a favorite target of scammers. If you have such a property, this step will help you.
Step Five: Monitor Vacant Properties Closely
To convince their victim of the genuineness of a fake listing, some scammers will even let a potential renter visit the rental property. These types of scams target vacant properties that are seldom visited by their owner.
You can protect yourself by installing smart home devices and cameras on your property. The system will alert you every time someone enters your property. The videos and photos from these devices can come in handy later.
Step Six: Use Trusted Platforms
Facebook Marketplace and Craigslist are two of the favorite sites used by rental scammers. To minimize your exposure to rental scams, only advertise on reputable sites like Zillow, Realtor.com, Apartments.com, and reputable local sites. Do not let third parties advertise your rental property without your written consent.
When working with third parties, ensure that they are licensed real estate agents or professional property managers. Ensure that your lease agreement prohibits subleasing or re-renting of your rental property.
Finally, if you do find a rental scam with the photos, videos, and address of your rental property on it, take these steps at once:
- Report the listing to the online platform where the advert is posted
- File a police report if the scammer has already taken money from their victims
- Inform your estate agent, lawyer, and tenants
Bottom Line
Rental scams are a growing problem, and while landlords are not legally responsible for a scammer’s actions, the reputational damage can be real and long-lasting.
If you want professional help monitoring your properties, marketing them securely, and reducing your exposure to rental scams, Oklahoma Red Door Management is here to help. Contact our team today to learn how our full-service property management solutions can protect your investment and give you peace of mind.