Georgia family of 8 now sleeping in their cars after falling for rental scam — here’s how to protect yourself
Bennecia Smith and her family were thrilled to move into a new home after an acquaintance connected them with a woman willing to rent them an entire house at an affordable price.
Since Smith's mother started experiencing health issues two years ago, the family of eight has primarily lived in motels throughout Clayton County, Georgia.
Don't miss
Commercial real estate has beaten the stock market for 25 years — but only the super rich could buy in. Here's how even ordinary investors can become the landlord of Walmart, Whole Foods or Kroger
Car insurance premiums in America are through the roof — and only getting worse. But 5 minutes could have you paying as little as $29/month
These 5 magic money moves will boost you up America's net worth ladder in 2024 — and you can complete each step within minutes. Here's how
However, nine days after moving into their new home, the Smith family realized they'd fallen victim to a rental scam.
“She [had] paperwork and everything. I had a whole lease. It felt like it was legit,” Smith told WSB-TV 2 Atlanta. “I was very excited because it was my first house with my two kids... [but] she took from my kids."
The family had paid the woman $1,200, set up a monthly payment plan, and moved into the residence. Then, the police showed up and told the family they were trespassing.
"I was like, how was I trespassing? I was showing him the lease, and he’s like, that’s a fake lease,” Smith told the news outlet.
The family had to leave the property, abandoning some of Smith's children's belongings. Unable to recoup the money they’d paid, the family is now left trying to cobble together enough money to get a motel room every night. If they can’t get the funds, they have to sleep in their cars.
How to spot a rental scam
Advances in technology are making it easier than ever for fraudsters to deceive unsuspecting renters.
Here’s an example of how these scams can sometimes work: scammers find a vacant home listed for sale online, then pose as potential buyers and contact the selling agent to get the door code so they can view the property.
Once they have access, they list the property for rent. Because they have the door code, scammers can even offer potential renters access to the home.
Then, they create a fake lease, collect a deposit, and take off with the money. By the time the actual homeowners realize what is going on, there is no recourse for the renters.
"You have to be your own detective,” said WSB-TV 2 consumer advisor Clark Howard. “Because once it happens to you, there is no easy way out… once the money has left your hands… the money has made a one-way trip.”
Howard claims these types of scams first started popping up about 15 years ago. He suggests checking property records online to make sure you’re paying the rightful owner.
Read more: Car insurance rates have spiked in the US to a stunning $2,150/year — but you can be smarter than that. Here's how you can save yourself as much as $820 annually in minutes (it's 100% free)
How to protect yourself from rental scams
The current state of the housing market — from inflation to limited availability — has resulted in a surge of fraudulent activity.
The national competitivity score stands at nearly 74 out of 100, with vacant units finding occupants within an average of 41 days, according to data from RentCafe.
Considering this climate, rental scams tend to work because they often appear legitimate — especially in a competitive market where renters are eager to find an affordable home. However, there are steps you can take to protect yourself from falling for one.
First, always insist on meeting the landlord or property manager in person, and never send any money — including application fees or deposits — before viewing the property. This will protect you from less sophisticated rental scams.
Before you sign a lease, search the address on real estate listing websites. Scammers often target vacant homes that are for sale, as it’s easier for them to gain access and steal photos. If the property you’re interested in is listed as for sale, it could be a red flag.
Next, check public property records to see who owns the residence. These are often available online through city or county websites.
If the name on the records doesn’t match the person you've been in contact with, ask to speak with the owner. If you do sign a lease, use a verified payment method, such as a check or ACH transfer. These methods may offer some recourse if the deal turns out to be a scam.
Most importantly, trust your instincts. If the rental price seems too good to be true, it likely is. Scammers often offer rental properties at below-market rates to attract renters willing to overlook other red flags.
What to read next
Unlock access to 4,700+ hand-picked, single-family homes across America — and the juicy rental cash they can generate. Here's how to start with as little as $10
82% of Americans are missing out on a savings account that pays over 10 times the national average
Rich young Americans have lost confidence in the stock market — and are betting on these assets instead. Get in now for strong long-term tailwinds
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
