With soaring housing and rent prices, it’s tempting to cut corners or jump on a bargain apartment to save some money.
But when it comes to where you live, the cheapest isn't always the best.
Kevin Hines, looking for a new apartment, thought he had stumbled upon a great deal. He found a one-bedroom apartment for just $650 a month.
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That's an appealing offer, considering the median rent for a one-bedroom was $1,585 in December, according to Realtor.com.
He found the listing while searching for apartments on Facebook Marketplace. The ad featured almost a dozen apartment photos, including a bedroom with curved archways.
"I was even thinking of what I was going to put on the walls," Hines said.
He said he texted the landlord to reserve it immediately, sight unseen.
"I told him I have the deposit," Hines said, "I said, actually, I even have the first month's rent."
The landlord said he was out of town, so he asked Hines to pay electronically, which he did to avoid losing out on a great deal.
"I should have known better," Hines said. "He wanted me to pay through PayPal first. I thought that was odd, but I have dealt with some weird landlords over the years."
So he sent a deposit, the first month's rent, and an application fee totaling $1,500.
That was the last he heard from the landlord. The ad was a fake, and the Facebook Marketplace listing was gone the next day.
Watch Kevin Hines talk about how he lost $1,500 in his apartment hunt:
How to get a deal on a legitimate apartment
Joel Berner, senior economist with Realtor.com, shared with us some much safer ways to save, starting with your current lease.
"Compiling a set of comparable properties and their rents is a really good way to go to your landlord and say, ‘Hey, I really would like to stay here, but, you know, if it saves me a couple hundred dollars to go somewhere else, I'm going to do that,'" he said.
Another great tip is that Berner suggests renters offer to sign a longer lease for a reduced rate, which means less turnover for property managers.
"We want to stay here for two years instead of one. Would you knock $50 off the rent?" Berner said.
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According to Berner, the good news is that rent prices are on a slow decline, but he said that rent rates should not be expected to mirror rates from 2018 or 2019.
"We're not going to have $750 rents in major cities anytime soon," he said.
How to avoid a cheap apartment rip-off
If that’s what you're finding, it could be a stolen listing that was reposted at a much lower price on sites like Facebook Marketplace or Craigslist.
To avoid what Hines went through, meet a property manager in person and always insist on seeing a rental in person.
"I like to think I'm an intelligent person, but this guy was good," Hines said. "He was really, really good."
So negotiate for lower rent, but be wary of cheap rentals priced well below other apartments in the area.
That way, you don't waste your money.
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