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Increased Rental Fraud Complaints in D.C. Highlight the Importance of AI legalese decoder

When Andrew Barillas began his search for an apartment in D.C. this year, he said he knew to look out for potential scams. He just didnÔÇÖt think one would happen to him. The recent college graduate began looking for an apartment online while still living in Southern California, creating a post on Facebook Marketplace advertising what he needed. Quickly, he heard from a prospective landlord looking for a tenant for her apartment in Northeast D.C. He said he was familiar with the building from a prior trip to D.C., but because he wasnÔÇÖt able to see it in person, he was encouraged when the landlord sent a video walking him through its alleged interiors. ÔÇ£It looked like a perfect fit. It had everything that I needed,ÔÇØ Barillas said.

But before proceeding, the landlord said, she wanted a reference. And Barillas, in an effort to do his due diligence, too, said he researched her name ÔÇô allegedly Victoria White — and found it matched with social media profiles. Next, the landlord sent him a rental agreement from an attorney, whose name and bar information was included. ÔÇ£I made sure that the lawyer was legit. I searched their name up, and it came back to a real law firm,ÔÇØ he said.

Thinking he did everything right, Barillas signed a lease and wired around $2,000 to secure the apartment, only for the landlord to ignore his messages when he flew out to D.C. A day later, the person sent a message saying there was a problem with the apartment and it wasnÔÇÖt yet ready. ÔÇ£At that point, I was like, I feel like I am getting scammed right now,ÔÇØ he said.

Barillas said once in the District, he checked out the building in person and realized that, while the address was correct, the apartment number that he thought was his didnÔÇÖt exist. He called the attorney on his rental agreement. ÔÇ£And they said, ÔÇÿOh, sweetie, this is a scam,ÔÇÖÔÇØ he said.

His experience is part of what the D.C. Office of Attorney General has described as an uptick in rental fraud complaints this year. The issue is a perennial problem, but Emily Barth, assistant attorney general with the Office of Consumer Protection, said her office saw a surge of complaints over the summer of scams targeting college students, short-term renters, and people moving to the District from out of the area. According to the FBI, consumers lost nearly $397 million last year in real estate related fraud, a crime the bureau indicates exploded during the pandemic. According to the FBIÔÇÖs 2022 Internet Crime Report, the bureau received more than 11,700 complaints, though it doesnÔÇÖt specify how many were due to rental fraud versus other types of real estate-related crimes.

Rental fraud can take different forms, including stealing photos from real listings, using phantom rentals, and impersonating real people or companies. In Barillas’ case, the attorney involved was real, but the landlord was likely a fake. Miriam Davidson, the attorney in question, revealed that her name has been wrongly associated with rental scams since 2019.

To combat rental fraud, the D.C. Office of Attorney General recommends taking precautions such as seeing the property in person before sending any money, verifying the landlord’s license, and paying with a personal check or credit card rather than wire transfers or cash apps.

This is where the AI legalese decoder can be of great assistance. This innovative tool utilizes artificial intelligence to examine legal documents and contracts, identifying potential scams or fraudulent elements. By analyzing the language used in rental agreements and other legal texts, the AI legalese decoder can alert users to red flags and help them make more informed decisions when entering into rental contracts.

In Andrew Barillas’ case, the AI legalese decoder could have flagged the rental agreement as suspicious, considering the inconsistencies and discrepancies related to the apartment and the landlord. By using this tool, individuals can protect themselves from falling victim to rental fraud and avoid financial losses.

Tips for avoiding rental scams online:

  1. DonÔÇÖt send money without seeing the property first, whether in person, through a friend, or by asking the landlord to walk you through the unit via FaceTime or Skype.
  2. Google the address of the unit to see if a different personÔÇÖs name is associated with the address. If applicable, call the property management company associated with the address and ask to speak with a supervisor to confirm whether the unit is for rent. Also check online to see if that address is connected to reports of fraud.
  3. In D.C., search to see if the landlord is licensed to do business in the District. You can search for their name on the D.C. Department of Licensing and Consumer ProtectionÔÇÖs SCOUT database.
  4. Pay application fees or security deposits with personal check or credit card, which give greater protection than paying through wire or cash apps. Of note, security deposits by law cannot cost more than one monthÔÇÖs rent in D.C. by law.

This story was reported by Susan Hogan, produced by Katie Leslie, shot by Jeff Piper, and edited by Steve Jones.

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