Zlati Meyer

Detroit Free Press

This month, millions of Americans will earn their diplomas and many will be moving out of their parents' homes or dormitories into their own places for the first time. This is the first installment of a series that explores what first-time — and even veteran — renters should know.

The bizarre calls started suddenly in March.

They asked about renting a home — a three-bedroom brick ranch on the 29000 block of Magnolia in Flat Rock they'd read about on Craigslist. Veteran Downriver Realtor Marie Gamber, working the sale, told each caller they were misinformed; the property was for sale, not rent and in fact, already had a buyer in place.

Still concerned about the blast of misinformation, Gamber decided to stake a "sale pending" sign in the front yard. When she arrived on the sleepy suburban street, she spotted moving boxes on the front porch. She rang the bell and asked the people who answered the door who they were.

They replied that they'd just rented the house.

The couple showed Gamber paperwork indicating they'd sent money to Oklahoma and Nigeria to secure a rental deal on the home — $600, including utilities, though a rental of that type would go for as much as 75% more. The key was still in the Realtor's lockbox, but the couple told her the owner — a Frank Granavos— had told them he'd leave the door open for them.

"We barely avoided a huge problem, since we were set to close a couple of weeks later. We then checked the house every three days until closing and changed the lockbox out," said Gamber who described herself as shocked by the whole situation. "This is something that homeowners, agents and potential renters need to know is happening."

The couple was forced to move out of the Flat Rock home and search for legitimate rental property. Their financial pain is too common in a shadow world of shady rentals and outright leasing scams. But families and students looking to lease homes can learn the telltale signs of a rental scam and avoid putting their money and housing needs at risk.

Summer rental know-how: do homework, avoid scams

Online rental scammers tend to focus on houses, not apartments in complexes. The houses are generally investment rentals or for-sale properties owned by not-present landlords, making them more vulnerable than apartment complexes with on-site agents.

Real-estate fraud cost Americans $19.8 million in 2014, according to the Federal Bureau of Investigation's most recent data. The FBI's Internet Crime Report called rental scams "prevalent."

Most popular is a con called scraping, when criminals hijack descriptions and photos from a legitimate real-estate ad and pretend it's theirs, swapping out the Realtor's contact information with their own.

Among other tip-offs to a scam:

Low-ball rent : Rents too cheap compared with other area properties

: Rents too cheap compared with other area properties Access : Not being allowed to see inside the home before renting it

: Not being allowed to see inside the home before renting it Signs : A "for sale" rather than a "for rent" sign in the front yard

: A "for sale" rather than a "for rent" sign in the front yard Wire transfers : Requiring money be sent by wire transfer

: Requiring money be sent by wire transfer Credit applications : Too-detailed credit applications, which they'll use to steal personal information for identity fraud.

: Too-detailed credit applications, which they'll use to steal personal information for identity fraud. Time line : Landlords in a rush to find a tenant: They might claim they have to move quickly — often abroad — because of a new job or a volunteer mission.

: Landlords in a rush to find a tenant: They might claim they have to move quickly — often abroad — because of a new job or a volunteer mission. Hidden fees: For example, when "landlords" say they're out of town, but offer to mail keys to check out the apartment. They might charge a fee or require a deposit of some sort upfront.

Realtors, such as Oakland County-based Jenifer Rachel, advise potential renters to remember that if it sounds too good to be true, it probably is. Rachel gets two to three calls from interested renters on every property she lists, citing very low prices. Most recently it was a Waterford home with three bedrooms, two bathrooms, a two-car garage, lake access and hardwood floors on just under an acre of land; people phoned, thinking it was just $800.

"I cannot police Craigslist on these properties. People need to use common sense," she said. "If they can’t get into a house, why would you lease it? These people tell them drive by. No, someone would need to let you into the home and let you examine the interior."

But even that isn't foolproof. Some criminals will break a window to get into the house, so they are able to show it to would-be victims when they ring the door bell.

And by the time the new residents learn they've been had, they've already moved in or are about to — and the rent money they sent is long gone.

Rental scams are especially an issue in hot real estate markets and big urban areas, where competition for rentals is high, according to John Breyault, vice president of public policy for the Washington, D.C.-based National Consumers League.

"There’s an incentive to jump quickly, because you're afraid someone will get it ahead of you, particularly if it looks like a great deal," he said. "There's this worry you're not going to get what someone else will get. That causes consumers to suspend belief and start sending money before doing their due diligence. Certainly, scammers are aware of that. They’ll use every trick in the book to get you to send money quickly."

Contact Zlati Meyer: 313-223-4439 or zmeyer@freepress.com. Follow her on Twitter @ZlatiMeyer

How to avoid becoming a rental-scam victim

Make sure the landlord is local.

Never wire rent money.

Always see the inside of the property before agreeing to rent it. As Craigslist warns on its website: "Do not rent or purchase sight-unseen — that amazing 'deal' may not exist."

Verify who the property owner is, using local or county resources. If the so-called landlord then claims to be acting on behalf of the real owner, run.

Find out what rent is for comparable properties. If your quote is too low, think twice.

Don't disclose too much personal information, like Social Security and bank account numbers, which a con artist could use to steal your identity.

Be suspicious if the sign in the yard says "for sale," not "for rent."

Source: Free Press research