Housing
This section of the BDN aims to help readers understand Maine’s housing crisis, the volatile real estate market and the public policy behind them. Read more Housing coverage here.
A unicorn apartment was listed in the pricey city of Ellsworth: a 2-bedroom with all utilities included for just $700 per month.
If that sounds too good to be true, it is, and the scam was not hard to detect.
The unit was posted by an anonymous Facebook user in a local forum without a specific address. A palm tree was faintly visible through the front door in one photo. When a reporter inquired about the post, someone used a Montana company’s name and sent a link to apply for a private showing in exchange for a $70 deposit.
A quick call to the Montana company, which deals only in home sales in that state, is not behind the scam listing. A representative said the agency gets daily calls from Facebook users around the nation telling them scammers are impersonating them.
These kinds of apartment listing scams, often seen on Facebook or Craigslist, have picked up steam in recent years as the nation’s housing crisis deepens and more have become desperate for affordable places to live. The scams often promise below-market rents in cities squeezed for that kind of inventory, meaning the fraudsters target those who are most vulnerable.
“Rental scams in a very tight market are very prevalent,” Phil Chin, a lead volunteer with AARP Maine’s fraud watch network, said. “People under the pressure of income are trying to get the best for a lower price, and seniors are always at disadvantage only because they don’t have the wherewithal to do all this checking around.”
These kinds of scams are “unconscionable” for targeting families looking for affordable housing, Attorney General Aaron Frey said in a statement. His office has received multiple complaints on the issue.
Many of the advertised units do not exist, the Federal Trade Commission wrote in an advisory. Some exist but are not for rent. One Maine homeowner recently discovered that his house was for rent on Craigslist without his knowledge, said Christopher Taub, Frey’s deputy. The ad included photos and almost got one renter to send money to a Nigerian email address.
“Fortunately, the shopper contacted the Maine homeowner and discovered the scam before sending any funds to the scam artist,” Taub said. “Other consumers haven’t been so lucky only to arrive at their paid vacation home for the week or new apartment to find out that it isn’t for rent at all.”
Often, Facebook users are wise to these scams and will comment that they appear to be one. But Facebook allows any poster to restrict their comments, allowing many fraudulent listings to go unchecked. Neither Craigslist nor Meta, Facebook’s parent company, responded to a request for comment on scam apartment listings.
To avoid being scammed, it’s important to confirm the person listing an apartment is legitimate or from a known and trusted business before sending them money, Taub said. Call the property management company and ask lots of questions or visit it yourself, the office advised.
The Federal Trade Commission recommends searching online for the rental location’s address and the name of the property owner. If the two don’t match, that’s a red flag. If there’s no address listed at all, like the Ellsworth unit, that’s another sign of a scam.
Though Maine landlords are allowed to charge application fees, it can only be for specific reasons including a background check, a credit check or some other screening process, according to Pine Tree Legal Assistance. Frey warns against paying any such fees by cash, wiring money, sending gift cards or paying by cryptocurrency, as you can’t get that money back.
“It’s a hard one to deal with. People are under income pressure,” said Chin of AARP Maine. “They have to be vigilant on their own, … but it’s hard to keep your wits about you when you’re facing eviction.”
