If you are looking for a place to rent right now, be aware that a property rental scam is currently operating in South Dakota.
The Better Business Bureau (BBB) issued a statewide warning on Tuesday, September 16, about a shady rental company called Locayt, and the numbers aren’t pretty. According to Dakota News Now, the BBB has received over 60 formal scam reports and 600 consumer inquiries regarding the company.
Locayt has been operating in South Dakota since September 2023, all without BBB accreditation. It currently has a F rating, owing in large part to its failure to respond to a flood of consumer complaints.
So what’s the scam?
Locayt allegedly charges renters a $49 “property viewing fee,” but once the money is sent, communication stops abruptly. No tour. There is no follow-up. No refund. Just radio silence.
According to Jessie Schmidt, vice president of the South Dakota Better Business Bureau, “So what happens is, you pay a fee to look at their properties, and then they ghost you and you don’t hear anything else from them, which is a big red flag in our estimation.”
According to Dakota News Now, some prospective renters even showed up at physical properties listed by Locayt, only to be informed by the actual owners that the homes were never available for rent.
What can you do?
The BBB is urging renters to first and foremost do their homework before handing over a dime:
- Research rental companies thoroughly.
- Verify who actually owns the property.
- Be skeptical of listings that are significantly cheaper than market value.
And if you believe you’ve been duped? Act quickly. Report it right away to the Better Business Bureau so they can help track down the fraud and possibly save others from being duped.
