Investing in real estate is a great way to do it passive income. However, there is a lot of work ahead to ensure that the investment is a good one and will not ultimately reduce your ability to earn money.

A great way to reduce the potential of dealing with scammers is by tailoring the way you find properties. Rental listing websites, such as Zillow and Apartments.com, have safeguards in place to ensure their listings are legitimate. Further, if you work with a reputable real estate agent to find your next property, they will most likely be able to verify the legitimacy of a property better than you can and will know professionals in the industry who you can contact. trust them to show them real wealth. , quality property.

However, rental housing scams are advancing more and more. Even using some of the safeguards mentioned above, it is important to know the following tips so that you can continue to benefit from your real estate investments instead of losing precious income to sophisticated scammers. Here are some tips on how to avoid rental scams.

Related: Fake property manager allegedly defrauded would-be tenants out of $200,000

Pay attention to the price

When looking for one investment in real estateeveryone is in it to try and make a profit. When a “too good to be true” deal comes along, it can be easy to get excited and think you've hit your prime real estate deal. Unfortunately, although there can be the occasional incredible deal, many unreasonably low prices are rental scams.

How can you tell if a low price is just a good deal versus a potential scam? You should look at the surrounding properties. Rental prices are determined based on the surrounding market, so if you see a property priced significantly lower than others, treat it as a warning sign that you may be looking at a potential scam. swindlers use unreasonably low prices to lure tenants.

Another way scammers trick interested renters is by matching the rent price to property prices in that neighborhood, but showing amenities and upgrades that should put the price much higher than they're asking. If a property is in pristine condition with many luxury amenities, but is priced where properties without these amenities are priced, move very carefully.

Keep in mind that most property prices are negotiable. While some legitimate properties may state that the price is non-negotiable, a common tactic for rental scammers is to set fixed, low prices and refuse to negotiate at all. Realtors and property owners are eager to rent/sell their property, so they will often be willing to negotiate to get it off the market.

Related: Want to invest in a rental property? Do these 5 things first.

Do your research

If you think you've found a great deal but aren't sure if you should believe it, the best way to avoid losing your income to scammers is to do your research thoroughly. Here are four steps to it research a possible list.

1. Check the Google Maps address

This step is a simple first step that anyone can do. Search for the property address on Google Maps and see if the listed property matches the property that Google pulls up. While this step isn't quite definitive of a legal estate, it's a great first step.

2. View property ownership records

Property ownership records are available online, and checking these documents can help you make sure the person you're talking to is the same person who actually owns the property. Find these records by looking up the property's address online or by contacting the county recorder's office.

3. Visit the property in person

If you are concerned about the current condition of the property and whether it matches the pictures you may have seen online, view the property in person. Of course, this opportunity is limited to buyers who are already in the same general area of ​​the property, but if you can, visiting the property in person can not only allow you to double-check the condition of the property, but you can also meet the owner's face. to face

4. Be wary of vague or limited listings

If a listing for rent not many pictures or little information may be a sign that the listing is fake. It's better to go ahead and find a legitimate listing than to waste time and energy on a property that may turn out not to be real.

Related: 3 Helpful Resources to Use When Looking for a Real Estate Investment Property

Consult professionals, but trust your gut

It is important to know that legitimate property owners and landlords will usually want to show you the property before demanding payment. If a property owner is asking for payment before showing you the property, that's a huge red flag.

If you're using rental listing platforms, you can usually find platforms with user reviews that have a proven track record of helping people rent or buy great properties. If you don't want to risk navigating the rental platforms yourself, hire a real estate agent to navigate this market for you.

However, the bottom line is: If something seems odd about a property, it probably is. Trust your gut. If someone is asking for payment too early or is pushy or aggressive, be extremely cautious. Trustworthy landlords and property owners will be eager to answer questions and provide information before receiving any payment.

Follow the steps and tips above to continue to use your money to further your business or personal goals, not feed into real estate scams. Pay attention to the price, do your research and consult a professional if you are unsure of your ability to sniff out scammers yourself. After all, trust your gut. If you feel like something is wrong with a list, it probably is.