BEWARE OF - Property Rental Scams

consumerbrief

800-242-5846



New Jersey Division of Consumer Affairs

www.NJConsumerAffairs.gov

BEWARE OF

Property Rental Scams

800-555-SCAM

beware-of-property-rental-scams • Revised 04/02/24

Are you looking for a short-term rental of an

apartment or house? Are you a homeowner,

seeking to make extra income renting out your

place to out-of-town visitors?

PROSPECTIVE SHORT-TERM TENANTS, BEWARE:

Con artists have been known to pose as property owners,

and place online rental ads that turn out to be fraudulent.

The ads may seem genuine, and may even include home

or apartment photos that are copied-and-pasted from

legitimate real estate listings. To make the scam even

more difﬁcult to detect, the scammer may use the address

of a property that is actually being listed online by its

real owner.

The fraudulent “landlord” will ask the prospective tenant

to wire money for the security deposit. But when the renter

ﬁnally arrives, he or she may ﬁnd that the property is not

available – or doesn’t exist at all.

PROSPECTIVE SHORT-TERM LANDLORDS, BEWARE:

Con artists have been known to respond to online real

estate rental listings in order to scam the owners.

One common trick is to send a check or money order for

more than the required amount, and ask the landlord to

send back a check for the excess money. Another trick is

to write a check or money order for the correct amount,

and then back out of the rental agreement and ask for

their money back.

The check or money order will turn out to be a fake – but

a good enough fake to temporarily fool the bank when

you attempt to deposit it. Your online bank statement may

at ﬁrst make it appear that the money actually has been

deposited and is available in your account. Only after you

send money to the scammer will you learn that the original

check or money order was a fraud.

ALL POTENTIAL VICTIMS, BEWARE:

Whether you are a prospective short-term tenant or landlord,

also remember that putting your personal information

on a fraudulent real estate contract can expose you to

identity theft.

CONSUMER ADVICE

■ Prospective tenants and landlords should consider

working with a reputable real estate agent.

■ A reputable agent will have access to legitimate

real estate listings and legitimate leads on renters.

Check online reviews about the agent, and ask

questions before agreeing to work with them.

■ Remember that if something sounds too good to

be true, it probably is – whether it’s a landlord

asking for extremely low rent, or a prospective

tenant offering to pay more than the amount

you’re asking for.

■ If you are looking at an online real estate ad,

conduct your own separate online search of the

owner’s or agent’s name and phone number.

If the owner won’t give straight answers to

Continued

800-242-5846



New Jersey Division of Consumer Affairs

www.NJConsumerAffairs.gov

specific questions, or rushes you to sign the

contract, this may be the sign of a scam. If

possible, arrange for someone in the area to

physically inspect the property and meet the owner

before you make a deposit.

■ Be sure to pay by credit card, rather than by checks,

money orders or wire transfers, or cash.

■ Using a credit card will make it easier to dispute

failed purchases. Save all of your transaction

information, including print-outs of the website

pages and emails.

■ If you choose to accept a cashier’s check or money

order, do not withdraw any of the money until a

representative at your bank can assure you that the

check has cleared and the money is truly available.

You also should make sure you have a security

deposit to cover against potential damage.

■ Prospective landlords also should make sure they

are allowed to rent out part of their home, or

sub-let their apartment, and that their insurance

policy will cover potential damage caused by a

renter. Check with your municipal code ofﬁcials,

property owner, or other authorities to avoid

getting yourself in trouble.

If you’ve fallen victim to a scam – or if you’ve been targeted

– contact the New Jersey Division of Consumer Affairs.

Call 800-242-5846 (toll free within New Jersey) or 973-

504-6200, visit us online at: www.NJConsumerAffairs.

gov or write to the:

Division of Consumer Affairs

Consumer Service Center

P.O. Box 45025

Newark, N.J. 07101

New Jersey Ofﬁce of the Attorney General

DIVISION OF CONSUMER AFFAIRS

Consumer Service Center

124 Halsey Street

P.O. Box 45025

Newark, NJ 07101

973-504-6200

800-242-5846

(toll free within N.J.)

E-Mail: [email protected]

website: