Vacation home rentals are usually fun, affordable and a great alternative to hotels, however, they are also less regulated and frequently prone to scams. Scammers have developed plenty of schemes to make a quick return off of oblivious travellers using high-quality photos (see above) of non-existent rentals and require up-front cash deposits. That is why it is essential for you to know how to spot fraudulent listings online.
Vacation rental scams are not only possible, but they're big business for criminals. Forter, a fraud protection company, stated: "travel fraud increased by 16% in 2017", and it continues to rise. A study from the American Hotels and Lodging Association found that approximately 55 million bookings per year are made on fake hotel websites and travel agencies. Fortunately, with a bit of pre-booking research, you can actually avoid showing up to a make-believe rental property that you have already paid for.
Checking the Photos!
The very first thing you should do is always check the listing's photos. How many images are listed? If there is only one poor-quality photo of the rental, that is a red flag. There should be several images that allow you to see various angles of the home, including a variety of rooms. If the pictures are only from the outside, that is also a red flag. Now, looking back how nice are the photos? Are they really nice? The images should be of decent quality at least smartphone quality but be aware of listings that only have a few Photoshop perfect-looking photos.
If you are not sure about listing's pictures, do a reverse image search on Google. On Google Chrome, you can right-click on the photo and select "Search Google for this image." If you see a similar picture being used on a bunch of other sites, especially stock image sites, that is a huge red flag. Also, do not hesitate to contact the owner or renter and request for additional images. If they are unable to provide them, proceed with extreme caution.
Research the Area and Property
If the images do not seem too fishy, the next thing to do is search for the property via Google Maps with the address listed. Make sure the property is actually reflected where they say it is. Then, use the Street View functionality to get a better view of the property. Does it look like the pictures the renters provided? If they do, then so far so good.
While doing this, go to Google Search and see if the address pops up anywhere else. It is possible the property has been listed on other vacation rental service sites. If so, see what the reviews of the property and renter look like to make sure you are not getting yourself into trouble. If you see a lot of decent reviews, great! Seeing bad reviews, or none at all? Oh dear...
It is not a bad idea to check the pricing of other available rentals in the area as well. If the pricing for the place you are looking at is way lower than the other properties in the area, that is a bad sign. You should always trust your gut on this.
Make Sure the Person Listing the Place is Legit
Since you are already on Google, you might as well expand your search just a little bit. Looking up the name of the owner/ renter and see what pops up. Do they actually live in the area? Are they a professional renting company? Do they have any social media presence? Basically, you are checking if this person actually exists...
If you are contacting them by email, see if the same email is posted on all other listings for the same property on various sites. Scammers usually grab pictures and logos from legitimate listings then add fake emails and phone numbers. Keep an eye out for consistency. If you find a listing for a place on a sie like Craiglist that links out to a booking service like Airbnb, keep an eye out on the URL. Scammers will use web addresses that look like legit sites to trick you.
If you really want to be secure when dealing with someone above board, ask a lot of questions especially questions that are not directly related to the property. Test their knowledge about local attractions, restaurants, and things-to-do. Where is the closest convenient store? Gas station? Do they have a favourite place to eat? What would they recommend there? If they cannot offer recommendations, be cautious.
No Rental Agreements, then-No Rental
If there are no rental agreements, either digital or physical, it is probably a scam. A reputable agency/ owner will have these since the terms will protect both parties. If they do not have one, start looking for something else.
Avoid Case Payments
Criminals have a strong preference for cash or wire-transfers like Western Union or MoneyGram so you should never use them when making a payment for a rental. Always try using your credit card. Cards like American Express, Mastercard and Visa allows you to dispute charges and will help you recover lost funds through fraud. You should also never pay outside of the rental site's platform where possible.
Finally, look out for security deposit scams. The most frequent scam is a fraudulent renter requesting an upfront cash deposit, usually a couple of hundred dollars. Do not fall for it. Again, use your credit card, but before you make any payments, do your research. If travelling in the United States note that each state has their own laws regarding the collection of security deposits, however, even some legitimate renters will ask for more than the law requires, in this case, do not be afraid to call the renters out on it.