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I spot bait-and-switch rental scams in New York City. Here's what apartment hunters need to be aware of when looking for a new home.

May 8, 2021, 19:01 IST
Business Insider
Lynne Allaker is the senior director of customer support for StreetEasy.Lynne Allaker
  • Lynne Allaker is the senior director of customer support for StreetEasy, an NYC real estate marketplace.
  • A big part of her job is taking down 'bait and switch' scams, which is when agents advertise false listings.
  • This is what her job is like, as told to freelance writer Nick Dauk.
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'Bait and switch' tricks are a big problem for apartment hunters in cities like New York. My job as the senior director of customer support for StreetEasy is to spot these scams and make apartment hunting easier and safer.

I was born in Dipton, a village in the northeast of England. After studying literature college, I ended up working in customer operations for a utilities company.

After 10 years in the town of Pity Me (yes, it's really called that!) in the city of Durham, I moved to New York and worked another decade for the same utilities company. I spent so much of my career in the same industry that I realized I wanted to see where else I could grow and develop.

Although I had zero background in real estate, I fell in love with StreetEasy the moment I interviewed with their team in late 2016.

Thankfully, my operations and customer management skills were transferable to my current role.

As with most professionals in New York, my team has been remote since the onset of the pandemic. We'd just moved into new offices two weeks prior and were temporarily remote during the transition, so going remote for the long-term wasn't difficult for me. I live in New Jersey, so I'm grateful to skip the long commute, but my daily to-do list is pretty similar to when I worked in the StreetEasy offices in Manhattan.

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To make apartment hunting safer during the pandemic, StreetEasy invested significantly in new technology, especially virtual walkthroughs, 3D tours, and more to give a really good sense of physical space on a virtual platform. We also rolled out Zillow 3D Home free for all real estate agents on our site to use.

Unfortunately, inaccurate apartment listings are a longstanding problem for New Yorkers.

Real estate agents may use popular listings that aren't actually available to intrigue renters.Getty Images

NYC allows for open listings, which means that multiple agents can try to fill a single vacancy. This sometimes results in multiple versions of the same unit being advertised a little differently. Photos may be different, bedroom counts may be different. Renters are then confused trying to decipher which listing is correct.

Another issue New York tenants face is what we call the 'bait and switch.' For example, an agent may create a listing for Building A (which has no actual vacancy) to generate interest. When a prospective tenant asks to see the unit, the agent says that Building A's unit is no longer available, but that Building B nearby has a vacancy (the unit the agent is actually trying to fill).

Why do agents do this? Often, Building A is the desired building for renters and Building B is the unit the agent is trying to lease. Because Building A is more popular, the agent knows they'll get more interested viewers. Since the prospective tenant has already made the trip down for nonexistent availability at Building A, the agent has an easier time convincing them to come check out B.

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My team vets and shuts down these listings before they can inconvenience prospective renters.

As soon as suspicions of inaccuracy are reported, our data integrity team will investigate.

If someone reports an inaccurate bedroom count, this team can look at floor plans to see how the building was reported when built and if updates were made. If we don't have data points (like building plans) available, we reach out to the agent directly and inform them of the inaccuracy.

We always try to give agents the benefit of the doubt. Depending on what we find, we may update the listing if it was an innocent mistake. We could also remove the listing or even suspend the agent's account if they have multiple violations.

On the backend, our data integrity team uses tools to monitor data points and verify inaccuracies, and checking IP addresses if necessary. New Yorkers, both renters and agents, are also good at self-policing which helps our monitoring efforts. Anyone can instantly report a problem with a listing and we'll investigate it.

Because of our policies, we don't see many scams on StreetEasy.

In 2017, we decided to charge agents to advertise listings, which led to a reduction in inaccuracy reports from 3% to less than 0.5%. We also limit each individual unit's representation to a single brokerage which prevents duplicate units from being posted.

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Luckily because of our policies and the work my team does, any potential scams are generally identified and addressed very quickly. But I will say, agents are incredibly nimble and creative, and so they have fun with their listings to try to get noticed by as many renters as possible. I'm constantly impressed with the creativity of the industry - we had one agent that started including the now famous Bernie Sanders meme in their listing photos after the inauguration, either hunched over in the kitchen or sitting on the balcony.

Whether you use StreetEasy or any other site, renters should know they have a wealth of information at their fingertips that can uncover inaccuracies. If you see more than one version of a unit listed on a website, that's a huge red flag. You should also cross-reference the information provided: Do the photos match the video walkthrough and listing information? StreetEasy also includes all past history for a building in each listing so you can see how much they've changed over the years.

Be wary of any apartment owners who claim to be abroad.

Never wire money to reserve an apartment that you haven't seen.Jim Davis/The Boston Globe/Getty Images

These dangerous scenarios are true scams and typically involve an "owner" asking for a money wire to reserve an apartment. Never, ever, agree to these requests.

As always, follow the same rule of thumb as if when you see an empty subway car: If it looks too good to be true, it probably is. Approach any 'unicorn' apartment with caution. Always visit an apartment in-person if you can do so safely, but only after you've vetted the accuracy of the listing.

My workday always starts off early, between 6 a.m. and 6:30 a.m.

I usually enjoy a cup of coffee and prep for the day for an hour, then I get ready to check in with my team of 19. Some are in different time zones while others work later shifts, so I tend to have multiple 15-minute Zoom meetings throughout the day.

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My day is balanced between working with my team and collaborating with other departments on projects which impact the end-user. I sign off by 6:30 or 7 p.m. and enjoy the rest of my night spending time with my family.

I rarely work late or on weekends, which is a huge testament to how conscious StreetEasy is about work-life balance. My team is now allowed to remain fully remote going forward, but post-COVID I think I'll probably opt to work from the office once or twice a week because I do miss being with my team in-person.

I've always managed customer-centric teams, so transitioning to real estate was a great fit for me.

Even though I started off in a different industry, I'm glad I made the career change. For other job-seekers looking into a new industry or role, my advice would be to find what excites and motivates you, then find a company that can cater to those needs while aligning with your values.

Most importantly, ask yourself if you're qualified and ready for the role you're applying for. If there's a gap preventing you from progressing in your career, find a practical way to fill it. For instance, our customer support roles are excellent entry level, yet complex, positions that we're currently hiring for. Roles like these can open up pathways for professionals to break into the real estate industry without following the traditional brokerage route.

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