With summer in full swing and many families looking to relocate, the need for rental homes is up but so are the numbers of scammers looking to take advantage of renters.
While such scams have been around for a long time, the trend has seen an uptick in Montgomery County.
Montgomery County Sheriff’s Office Lt. Scott Spencer said his office has had a growing number of similar scams reported by residents. Most, he said, are listings found on social media.
“They pretend to be realtors, requiring the new renter to pay a down payment and then it ends up not being their house,” Spencer said.
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Naomi Dixon with ReMax Distinction in Montgomery said one reason for the rise in scams is technology.
“A lot of these rentals are owned by companies that offer self-guided tours,” Dixon said. “So you can actually go up to the door, type in a code and get in. They are using it as a tool to trick people into thinking they are a realtor.”
The Federal Bureau of Investigation reported Texans lost more than $42 million in real estate and rental scams in 2021, up from $23 million in 2020 and $10 million the year before the pandemic. The Houston Association of Realtors also said scammers disproportionately target minorities, those who may not speak English and people not familiar with the rental process.
The most common scam reported to the bureau’s Internet Crime Complaint Center involves scammers using the name of an actual real estate agent but will make a slight change to the contact info. There will often also be a fake back story about why the home is being rented so cheaply — for example, because they need to go out of the country on short notice and want a family to take care of their home like their own. The fraud can go beyond stealing a deposit or first month’s rent because rental applications can ask for personal information including social numbers.
“A lot of people who have come to me after they have been scammed said there was a person there who opened the door and let them in,” Dixon said. “They have a lease and tell them if they give them $1,500 electronically today they will get (the home) and they never see their money again.”
Dixon said to avoid using pay apps to send money for deposits and application fees.
“Use HAR,” Dixon said. “Don’t use Facebook Marketplace or Craiglist, or even Zillow. Research real estate agents. I think people think they can save money by not using a real estate agent.”
The Texas Attorney General also cautioned renters who are looking for summer rentals.
“Be especially cautious if the property owner asks you to provide a deposit before you see the property in person,” the office states on its website. “Scammers often post fake listings in an attempt to collect advance deposits from unknowing consumers. Such scammers then make excuses as to why they are unavailable to show the property, or why you can’t pay them through their online listing.”
You can report rental and other consumer scams to the Attorney General’s office through an online form, the site states.
