What is the Zillow Rental Scam?

Zillow Tenant Screening Scam: How does it work?

Zillow has long offered landlords the option to perform background screenings on potential tenants through its platform. They market it as part of their rental listing services where landlords can “run a complete renter background check, credit check, and get insight into an applicant’s income qualifications and evictions history.” They go so far as to claim they’re utilizing “industry-leading” credit and background check providers. What’s even more enticing is that they don’t charge landlords for the service, but build it into application fees to renters. If, as a landlord, this sounds a little too good to be true, it is.

For the last two years scammers, especially in Charlotte, North Carolina, have been exploiting a huge flaw in Zillow’s tenant screening service: the service somehow doesn’t recognize when the personal information input into the software doesn’t match the identity of the applicant. So, scammers will apply for an apartment using someone else’s social security number and a made-up name, they’ll get approved, and they’ll move a whole other person into the rental. Often, the person who actually moves into the landlord’s property is a serious criminal and they usually continue to commit crimes at the property.

A case from over a year and a half ago made the local news: accused serial scammer and it doesn’t look like much has been done by Zillow nor the local police to push back.

This issue has proven to go well beyond a simple technical error. The cases have highlighted critical issues within Zillow’s background check process as a whole. Given this failure, scammers have been able to bypass the background screening process, presenting a clear record to landlords and allowing them to qualify for tenancy. As a result, they have been able to secure leases under false pretenses and even go to the extent of illegally subletting properties for profit.

How Do You Know if You’re a Victim of a Tenant Scam?

1.       Suspicious Rent Payments

Tenant scams are often associated with suspicious rent payment patterns. Rent may be paid by someone other than the named tenant or the tenant may fail to pay rent. If you’re receiving rental payments from someone other than the person who signed a lease with you, it could be a sign that the person living in your property is not who is on your lease. 

2.       Frequent Sightings of Unauthorized Occupants

There may be a frequent presence of residents or occupants other than the named tenant. Often the applicants will present themselves as single females (usually with children), but many of our clients have told us that a male will be frequently seen coming and going from the property; or that no children have ever been seen coming or going from the property. This can be a red flag for fraudulent activity or unlawful subletting schemes. 

3.       Criminal Activity on the Property

Unfortunately, many of the people who actually move into properties using these scams are convicted criminals and many continue to engage in criminal activity at the properties they rent. This may include drug-related crimes, and the use of firearms, which pose serious dangers to landowners, and neighbors.  

4.       Leasing Multiple Properties

Zillow scams are linked to the use of fraudulent identification information across multiple rental properties at the same time. Scammers may apply for multiple leases under the same name, or use different forms of documentation, which may indicate fraudulent activity.

How Can You Protect Yourself from Being Scammed?

1.       Cross Check Zillow Background Check Results

To verify information provided in a Zillow background check, consider conducting an internet search using the applicant’s provided information. Sadly, some of the flags that Zillow’s screening service miss can be discovered using a simple google search of a phone number, employer, or rental reference provided by the applicant. You should also call applicants references and employers to verify the information they provided. Some of the more sophisticated scammers will have planned for this, but it’s one thing you can do to protect yourself.

2.       Use a Paid Background Check Software

You can also pay for a background check from another reputable background check company or hire a management company to do it for you. There are many good services who don’t have major flaws in their software that you can utilize.

What Should You Do If You Think Your Current Tenant is a Zillow Scammer?

If you suspect you or someone you know may be a current victim of the Zillow background check scam, please contact the Law Offices of Andrew L. Gordon for further assistance.