How do I make sure not to get scammed on a Craigslist sublet?

May 12, 2013 8:35 AM

I'm traveling over the summer (for a month) and found a short-term sublet on Craigslist that seems perfect. The current tenant (who is renting her 1br in a 2br apt) has agreed to let me stay and has asked me to transfer a deposit to her bank account. It is an actual bank (rather than Western Union or something of that sort), but I don't know enough - nor have I been able to find enough by searching online - to find out if this is "safe."

Is there a more secure way to send a deposit for a sublet? I was thinking of asking to use Paypal instead.

Also, what information or personal details could/should I request from the renter to make the transition more safe, or at least to minimize my nervousness about getting scammed?

I know that she's taking a risk, too, and if I'm planning to live there, a certain amount of trust is involved. The internet (namely Craigslist) still just makes me nervous, though, so I want to do what I can.

Thanks for any advice and apologies if this question has already been answered - I dug through all sorts of past posts and couldn't find this specific info.

posted by lxs to Travel & Transportation (16 answers total)

Is this in the US? It's very common to bank by EFT in other countries and there isn't an issue of them having access to your account -- you simply put in the details for the transfer. It's not as if they are getting your bank info. If they want to do a recurring deposit, those can be difficult to stop unless you are physically there after the end of your time (if that makes sense).
posted by mrfuga0 at 8:39 AM on May 12, 2013

Response by poster: It is in the US, so thank you - this is good to know!

Also, after re-reading my post I should probably also clarify that I'm looking for advice on making all aspects of the sublet organization more secure, and not just sending the deposit.

Thanks!
posted by lxs at 8:48 AM on May 12, 2013

EFT is pretty standard. I would not agree to Paypal in her case, because it's too easy for things to go wrong, and then you need either to attach it to your account or the money is in limbo.

Do you know anyone in that city who can check the place out for you? Meeting in person makes things more secure.
posted by jeather at 8:54 AM on May 12, 2013

What you're looking for is an ACH transfer or a wire transfer. ACH transfers are cheaper (some banks will do them for free), but take a couple days to happen. Wire transfers are more expensive (think $20-$40), but happen instantaneously. There's nothing unsafe about either - if you are sending money, you don't reveal your account details. If you want to be particularly fastidious with records, you could ask for a receipt from your bank. It's actually a bit safer than checks, because checks reveal your account details and ACH transfers/wire transfers don't.

As for making the sublet more secure, take the approach that you should take when renting any place. Assume for financial purposes that your deposit will not be returned and that you will need to aggressively pursue the matter/sue the renter to get it back. For a sublet, receive a copy of the renter's lease and verify (through the landlord) that the renter has all permissions necessary to sublet the property. Also, realize that for a single month, there's not much that can go wrong. Even if the sublet is illegal, it would take much more than a month to evict you.

Finally, realize that these sorts of agreements happen all the time, especially if you are in graduate school as your profile suggests. The realistic "worst case outcome" is that you lose your deposit. That's about it.
posted by saeculorum at 8:56 AM on May 12, 2013

All I have for you is a datapoint, but I'll say this: I have rented many a sublet via Craigslist (and for that matter sublet to other people), and I have never, ever been asked (or asked anyone) to send a deposit in advance.

Once I had someone send me a lease application (so she could run a credit check on me), then I signed an actual lease saying I'd pay such and such amount for the two months I'd be living there. If I were you, I'd ask for that - it protects her in case you're a flake, and it protects you because you're not sending money to a rando.

Seriously I would not do this. I don't think it's common, and I don't think it's a good idea, unless the deposit is an amount of money you're willing to part with if she turns out to be a flake and/or criminal.
posted by goodbyewaffles at 8:56 AM on May 12, 2013 [3 favorites]

I have rented many a sublet via Craigslist (and for that matter sublet to other people), and I have never, ever been asked (or asked anyone) to send a deposit in advance.

For what it's worth, neither of the two sublets I've done has been any more than a very standard lease signed with a deposit being exchanged at the same time. I think more details are prudent here; if the deal is "pay a deposit, then we'll sign a lease", I'd also be worried here.
posted by saeculorum at 8:58 AM on May 12, 2013

Nthing that this is not normal for a subletting situation. In my experience, putting down a deposit and signing a lease happens at the same time.
posted by SkylitDrawl at 9:02 AM on May 12, 2013

1. Is it too good to be true? Such as a very cheap rent for a place on a beach or a big city with high rents?

2. Have you communicated with this person by talking to them on the phone? Not just via email or text message?

3. Does any part of the ad seem strangely worded, such as using "lounge" for living room or "cupboard" for closet?

4. Ask for some proof that they are the legal tenant, copy of the lease, utility bill, etc.

5. Don't send money without a signed agreement.
posted by Marie Mon Dieu at 9:05 AM on May 12, 2013 [3 favorites]

Yeah, you need a signed agreement before sending a deposit.

At a minimum it should spell out:
-that this person has the authority/permission from the landlord to sublet
-contact info of the landlord (you'll contact them directly to confirm)
-names/contact info of other roommate (if applicable)
-address of the property and the dates you'll be living there
-will this person (or anyone else) be allowed to stay there during the same period or no
-how much money are you paying, both in the deposit and monthly
-what are the conditions under which you get your deposit back? within what timeframe? (check landlord tenant law in the area, there may be a set period of time within which she must give it back or give you written notice of the problems)
-will she be leaving any furniture etc, and other items she wants to note (so she can't say "my stereo disappeared!" if she didn't really leave a stereo; also you take photos when you move in of any damaged items/areas so she can't claim damage came from you)
-parking and other conditions attached to the unit (do you get a parking spot? have use of the washer, garden, etc)
-other expectations about things you'll do while you're there (utility bills? mow lawn?)
posted by LobsterMitten at 9:12 AM on May 12, 2013 [1 favorite]

Yes, see the place in person and sign a lease before paying. A better route might be a short-term rental through airbnb while you find a sublet. As they say, "trust but verify". If you've only communicated online and they're asking you to transfer money, it's a scam until you have truly compelling evidence it's not.
posted by sninctown at 10:02 AM on May 12, 2013 [1 favorite]

A Facebook or linkedin profile with a reasonable number of friends/contacts would make me feel more confident that the person is who they say they are. People can be honest about who they are and still be lying about details of a rental, of course, but at least this eliminates certain classes of scams.

And my policy with any sort of rental or sublet is that I do not give anyone money without (at least) a rudimentary written agreement to the effect of "Needs More Cowbell has given Landlord $XXX as a security deposit/first month's rent/whatever." My benchmark is "If I needed to take this person to small claims court to get my money back, would I have sufficient proof that I gave them money and that they didn't give me what I was paying for?"

And if discussion of how and when I will obtain a key has not yet happened, it needs to happen when the money changes hands. As a side note, I've sublet a bunch of times and I think for all or most of them, the person has been pretty low-pressure about getting me to give them the money. That in itself makes me trust them more.
posted by needs more cowbell at 11:11 AM on May 12, 2013

I've rented out rooms on Craigslist many times, and the couple of times I have taken a risk on an out-of-towner, I have of course needed a deposit. Otherwise, it meant I was risking losing out on finding another tenant if they backed out, etc. Your situation may or may not be a scam, but requiring a deposit is not sketchy at all, especially for a summer rental when competition can be fierce depending on the city.
posted by thegreatfleecircus at 11:52 AM on May 12, 2013

I am a hugely frequent short-term sublettor and renter of my place and I always ask for (and pay for) deposits ahead of time.

For out-of-towners, that's part of the deal - I am taking a risk on someone I don't meet until the day I hand over the keys and need something other than the lease to guarantee them as a tenant. Generally I ask for this deposit (and pay my own deposit) via paypal. The renter pays the fees (e.g., when someone is sending me a deposit they pay the fees, when I'm subletting someone's place I pay the fees) and I generally fund it with a credit card so I have one more possibly protection in case of issues.

I basically start the process by checking the person out online (usually pretty feasible) and making sure the info they've given me matches what I see online. When I'm subletting, I ask to see a copy of their lease to verify that they're allowed to sublet (this also is a way of seeing one more piece of info that substantiates their story, though of course leases are easily faked), when I'm renting I generally google to see if the apartment or home shows my contact as the owner. Trust your gut, if it seems too good to be true or something seems strange (e.g. the apartment is in Idaho and the person's phone number is in Nebraska) investigate it and don't move forward unless there is a reasonable explanation.

I have a signed agreement with them with basic rules, etc, mostly using a template from the interweb.

I also share a copy of my government ID with the other person (whether I'm subletting or the lessor) and ask them for a copy of their ID. No one has ever balked at this.

I do this aaaallll the time (2x this year as both a "host" and a "guest") and I've never had problems, though of course there is a first time for everything. And yes, prior to arriving or prior to the other person arriving I'd absolutely expect to pay or be paid a deposit in addition to the first month's rent.
posted by arnicae at 5:33 PM on May 12, 2013 [1 favorite]

I've rented this way many times. I usually have to provide a deposit ahead of time, after we've agreed (via email) to the terms of the rental. But I also take the extra step, whenever it's possible, of Googling the everloving snot out of the person to make sure they really exist, and (if possible!) arranging a visit from a friend to make sure the place really exists and that the person is actually there to show it. The one time I didn't have a friend in the city in question, I hired someone from the gal/guy Friday ads on Craigslist to go look at it for me. The $60 was worth the piece of mind!
posted by 1adam12 at 7:33 PM on May 12, 2013

My boyfriend got ripped off in this exact way, even after having an agreement.

As a result I would refuse to send any money before being able to physically see the place or at a bare minimum, meet the person somewhere.
posted by WeekendJen at 8:12 AM on May 13, 2013

1adam12's idea of getting someone local to go see it if you can't is great.
posted by WeekendJen at 8:13 AM on May 13, 2013