Home New mexico real estate Report: NM in top 5 in US for rental scams

Report: NM in top 5 in US for rental scams

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Imagine this: you are looking for an apartment and finally see an online ad in your price range that piques your interest. You contact the property manager, submit an application and maybe even visit the property. But after sending them a security deposit and the first month’s rent, things go wrong.

You may be told that you can’t move in unless you send several hundred dollars for urgent repairs to the apartment. Or maybe the supposed owner sends you a digital key code, but it won’t unlock the door. Or maybe you pay over $1,000 for a week’s accommodation at a hot vacation spot only to find, when you get there, that the property you thought you rented was never put up for rent and that it is in fact a private residence.

All three of these situations are classic rental scams that have already happened to potential tenants in 2022 and have been reported to the Better Business Bureau Scam Tracker. In a rental scam, someone pretends to be a landlord or tenant, or lies about the availability and terms of a property. It’s more common than you might think — more than 11,500 people reported falling victim to online real estate or rental scams in 2021, according to the latest FBI data. Collectively, the victims lost over $350 million.

To find out how prevalent these scams are across the country, Palm Paradise Real Estate looked at data from the Better Business Bureau’s Scam Tracker to see which states reported the most cases of rental fraud so far in 2022. The rankings were determined by the number of reports. filed in each state per 1 million population, rounded to the nearest whole number. From January 1 to September 15, 2022, 305 people reported rental scams in the United States

Some areas with particularly hot housing markets, such as Boise, Idaho, or Phoenix, are especially susceptible to scam artists trying to make a quick buck from desperate renters. Vacation homes aren’t immune to the problem either; Hawaiian real estate companies and real estate agents have been plagued by the fallout of years of scams targeting travelers. Read on to find out which 18 states have the highest rate of reported scams.