Real estate scams cost buyers, renters, investors, and agents billions of dollars annually. Scammers have always been present amongst us. Over time, they have adopted more sophisticated ways to deceive people, making them harder to catch. Most rental scams often have one goal: to steal money. Because of that, people are more cautious of any signs indicating they are dealing with a scammer. Even the slightest sign of deceit would make them pull back even if there is no actual threat. As the saying goes, it is better to err on the side of caution.

As a rental agent, you need to understand that clients have all the right to protect themselves from scams and that you must ensure them of your trustworthiness. The last thing you want is for potential tenants to identify you as a scammer because it can destroy your credibility overnight. Of course, the obvious thing to do is not scam your clients. However, as mentioned earlier, tenants are cautious so, they might misinterpret some of your actions as deceitful.

Here are a few red flags that tenants watch out for to avoid getting scammed. Avoid doing them so that you will not get mistaken for a scammer.

Not meeting them in person

Scammers protect their identity because they want to get away with the crime. Giving away their identity would make it easier for authorities to track them down.

Wary tenants always request a face-to-face meet-up before signing any lease or sending any payment. As a rental agent, meet potential tenants personally because it would also benefit you. Meeting each other can prove that your intentions to transact and your identities are legitimate.

Even though in-person meetings are discouraged these days due to the current pandemic, or even when circumstances would make it physically impossible in the future, you must make an effort to meet them virtually. If you reject their request to meet through real-time video conferencing, do not be surprised to lose them as clients.

When conducting virtual walkthroughs, make sure you appear on camera so that they can ensure that you were authorized to be inside the property you are marketing.

Too eager to close the deal

Some agents tend to rush in closing deals without thinking that the excessive eagerness would appear sketchy. Yes, you would want your transactions to be fast because you are eager to collect commissions, and the landlords want to decrease their vacancy rate quickly. However, maintaining your credibility and finding quality tenants is more important than speed.

Scammers would rush tenants to move in to decrease the chances of them discovering the modus. They often use pressure on tenants who are in desperate need to find a rental. They will collect downpayment and flee before the tenants move in and catch them.

Asking unnecessary fees

Be careful about asking for payment before a tenant signs a lease. Application fees for background checks and screening are acceptable. Scammers would ask applicants for hefty security deposits and reservation fees without meeting them for in-person walkthroughs. It is a clear red flag, but some vulnerable and gullible tenants still fall victim to it.

Poorly constructed listings

It may be a minor issue, but property listings riddled with typos and grammatical errors often get perceived as fake. The same goes for listings with pixelated photos of the property.

Before publishing a listing you created on listing syndication platforms like Padleads, make sure it has sophistically written property descriptions, proofread to perfection, and supplemented with high-quality and elegant photos. That way, you will be confident to syndicate it to popular websites without worrying they would look like a scammer made them.

Lenient screening

The only goal for most scammers is to get money from their victims as quickly as possible. Those engaged in rental scams would often suggest to tenant applicants that they skip the screening process and proceed directly to paying the security deposit. The offer would be tempting to applicants because they also want quick approval of their application.

Screening tenants is essential for rental agents to find good-quality tenants. It is common practice, so agents should not worry that conducting a screening would discourage tenants from applying. If you lose an applicant because you won’t allow them to escape the screening process, they are not the kind of tenants a landlord would like to have. It is not a loss on your part.