Reports of housing rental scams in wake of Helene

Don Fenley 

The outpouring of aid to Hurricane Helene victims is restorative to our sense of community during an era of deep divisions. The list of collection sites for any and everything to help flood victims is so long it’s hard to keep up with. Unfortunately, there’s also an increasing number of reports about the darker side taking advantage of increasing housing needs. 

MICHELLE DAVIS
NETAR President

The number of complaints of rent scams is increasing as demand for housing is increasing in a market that is already dominated by more demand than supply. 

Leading the list of complaints is con artist convincing a potential renter to pay for an application free on a property that has an up-front rental application requirement. The property may not actually be for rent or a legitimate rental that the con artist has misappropriated the ad and contact information. The result is the potential renter loses his or her application money and has to start their search all over. 

Ground zero for scammers are websites that offer free listings or ads. We’ve all heard the advice that “if something sounds too good to be true, it probably is.” Some local consumers can testify to it.  

The free listings sites are a favored medium for con artists because the housing section attracts a lot of consumer traffic. Legit landlords and some agents also like these sites because of the traffic volume, and it’s a way to trim marketing expenses in a market that is fiercely competitive. Admittedly, the sites are a place to score a good deal. They’re also a good place to get snared in a scam. 

When responding to these listings or ads, there are red flags that should send savvy consumers scurrying for the exit. 

One example is the fake landlord responding to an email or a call apologizing that he – or she – has been unexpectedly called out of town and can’t show the property. However, a showing appointment with a third-party agent can be arranged if the consumer makes an up-front deposit.  

Another scam – a phishing tactic – requires the consumer to provide personal information like a driver’s license number, social security number, a credit card, or even bank information before an application can be processed and a walk-through planned. 

These are just two examples that should send up a red flag for consumers. Either situation is almost a guarantee that the listing is a scam and the person at the other end of the ad is there to steal your money or identity. 

Increasing local rental scams and identifying theft efforts via rental applications are the primary reasons consumers should partner with a professional Realtor® before any money or personal information is provided for a real estate transaction. Realtors® are professionals who adhere to a code of ethics and use the Internet for legitimate business. Scammers use the Internet – of Information Superhighway as it’s sometimes called – as a fast lane to steal unsuspecting consumers’ money and/or identity. 

NETAR is the voice for real estate in Northeast Tennessee. It is the largest trade association in the Northeast Tennessee, Southwest Virginia region, representing over 1,800+ members and 100+ business partners involved in all aspects of the residential and commercial real estate industries. Weekly market reports and information for both consumers and members are available on the NETAR website at https://netar.us