Are you looking to rent an apartment? Beware of scams!

Chapters of the article

• Rent fraud and its variants
• There are several ways to get money out of you
• You’ll encounter them online and offline
• Low price as the main feature
• Beware of paying upfront
• Late bull chasing doesn’t apply here
• Summary

Rent scams and their variants

Rental scams come in many forms, but their goal is always the same: to defraud “tenants” of their money. The most common variations are:

• Fake offers: In this case, the scammers post a fake advertisement. Everything is fake here – from the photos to the description of the apartment to the address. These offers contain attractive photos and offer rent at very good prices to attract as many victims as possible.
• Stolen adverts: In this variant, fraudsters take an existing legitimate advert and repost it with their contact details and often at a lower price.
• Real estate listings: In this case, the property actually exists but is not available for rent. It may be a house in foreclosure or an apartment already rented.
• Unfavorable exchange: In this case, the scammer advertises a specific apartment for a good price. However, once you pay the deposit, he comes up with the fact that the apartment has already been blown off. But don’t despair, because the scammer has a replacement for you – a much worse apartment or one in similar condition, but at a much higher price. And if you don’t take it, you lose your deposit.

They’ll get money out of you in several ways

One of the most common methods is for the scammer to ask you for a deposit on the apartment before you have had a chance to view it or before you have signed the lease. This deposit may only include a kind of reservation fee, but it may also include a refundable deposit or the first month’s rent. In this case, the scarcity of properties on the market plays into the hands of scammers, who often compete to see who can snap up the apartment first.

Scammers may also claim that they need to check your creditworthiness (i.e. your financial history and whether you are in debt or have had problems paying rent in the past, for example) before signing the lease. However, this check costs money, so the scammer will ask you to pay a fee for this check. However, this will never take place and you will lose both your flat and your money.

Sometimes fraudsters will go so far as to draw up a tenancy agreement, but this is designed to be unenforceable and is therefore invalid. After signing such an agreement, the scammers can extort the security deposit, first rent and other fees from you.

You will come across them online and offline

You can encounter these scams virtually anywhere where similar offers are shared. These can be websites directly dedicated to sharing rental offers such as iDnes Reality, Bezrealitky or Sreality. Also be cautious if you are looking for rentals on various social media sites such as Facebook Marketplace, Twitter or Instagram.

However, you may not only come across similar offers online. In fact, you can also come across them in the real world, for example on the various bulletin boards you can find in supermarkets, on university campuses and so on.

Low price as the main feature

So how to spot these fraudulent offers? Fortunately, it doesn’t have to be that complicated. You just need to know what to look for:

• Suspiciously low rent: If the rent is significantly lower than other offers, proceed with caution. A suspiciously low price is a major feature of these scams.
• Pressure to pay quickly: Scammers often create a sense of urgency (for example, by claiming they have lots of other applicants) to speed up the payment process.
• Asking for money before signing the lease: Be careful if you are asked to pay a deposit, rent or other fees before signing the lease.
• If the landlord gives you an excuse that they cannot show you the propertyin person, it is probably a scam. In fact, a personal inspection is a matter of course with real offers.

Beware of paying in advance

If you are planning to pay anything in connection with the rental, make sure it is a legitimate offer and you will not lose money. First of all, check the property and the person you are dealing with. Always check public records to confirm that the property actually exists – you can check the Land Registry to find out who owns the property. If someone claims to be an estate agent representing the owner, for example, ask for proof. Also, insist on seeing the property in person to make sure that the reality matches what is in the photos and the description in the advert.

In practice, we have even had a fraudster impersonate the owner of a property. However, he only broke into the flat under false pretences and presented it for rent on that occasion. This way, he extorted the first rental payment and a deposit of tens of thousands of crowns. However, we helped the client to claim the damage.

So avoid paying any fees before you have the lease in your hands. Make all payments after you have signed this agreement. At the same time, also have the lease agreement reviewed by an attorney. This will not only avoid it being invalid, but also avoid various legal tricks that could be highly disadvantageous to you. Last but not least, protect your personal information carefully and do not share it unless absolutely necessary. If you come across something suspicious, report the alert to the platform where you found the ad.

Too late to chase the bull doesn’t apply here

If you fall victim to this scam, it is important to act quickly to mitigate the overall impact as much as possible. Contact your bank immediately and report the fraud. This is because in some cases it may be possible to stop the transaction. Also report the fraud to the police. Give them all the information you have. This may include records of communication with the fraudster, payment receipts and the advert itself (if you have a screenshot, for example, or if it is still displayed).

Also, inform the platform where you came across the fraudulent advert. This step will prevent other people from falling for the same advert and may also help you track down the fraudster, especially if they have multiple fraudulent adverts posted on the platform. You should also file a complaint with the Czech Trade Inspection Authority, which monitors similar cases.

If you’ve shared your personal information with the scammer, don’t forget that too. Keep a close eye on your bank statements for suspicious activity. Also consider freezing your account altogether and setting limits on payments.

Summary

In conclusion, caution is essential when looking to rent an apartment. The market is full of fraudulent offers, so it is important to properly verify the property and the lease, ideally with the help of an attorney. If, despite all precautions, you happen to fall victim to fraud, contact your bank immediately , report the fraud to the police and inform the platform on which the advert was posted.