How To Avoid “Bait and Switch” in the NYC Rental Market

For NYC renters, nothing is more frustrating than falling for the old “bait and switch”.  It is a real and ongoing problem, not to mention a huge waste of time and money for all involved.  

NOTE: To search for NYC apartments, go to frele.com (free service).  Or, click for more rental tips

How The “Bait and Switch” Game is Played

“Bait and switch” as a sales tactic has quite a long history, with the earliest accounts dating back to 1617. It is still prevalent today and affects all different sectors of commerce.

In the NYC rental market, “Bait and switch” is when renters are intentionally lured with lower-priced apartments (the “bait”). These apartments are no longer unavailable or they don’t exist – but regardless they are still listed on rental websites.   Instead, the broker or landlord will try to rent you something else, usually a more expensive apartment (the “switch”).

The “bait” is usually an amazing apartment that is surprisingly cheap. Since it looks like a bargain, many renters will try to contact the broker or landlord. So you send them an email, hoping to get an awesome deal. Sadly, you hear that it is not available anymore. The lister will then tell you “I do have other apartments available for a higher price range”. Thus, the bait and switch tactic is complete.  

Is Bait and Switch Legal? 

The real estate market is so competitive that landlords and brokers (okay, mostly brokers) will do anything to grab the attention of renters. The “bait and switch” tactic is one of them. However, because it is considered false advertising, those using the technique could be subject to a lawsuit.   Needless to say, bait and switch gives real estate agents and the entire industry a bad name. I

f you check out our list of the top 6 rental websites in NYC, you’ll notice even some top sites have a lot of bait and switch listings because of the unintended consequences of their business models. We strictly do not allow it on Frele.com. If you see or suspect any kind of bait and switch activity going on, please let us know asap. We’ll gladly deactivate listers who engage in this practice.  We need your help in maintaining a healthy marketplace for NYC renters

Avoiding Bait and Switch

Just by being more aware of this issue, it will help you to avoid bait and switch tactics.  If an apartment just seems too good to be true, it usually is. You should ALWAYS be cautious if the real address is not publicly displayed or if the address is not at least provided to you in advance.  

Always be very clear with the lister and feel free to ask him or her: “Is this exact apartment shown in the photos still available? This is the one I want to see. If we can’t see this one, then I am not interested”.  You can even add “Just so you know, on principle alone, I won’t rent anything if we don’t get to see this unit so please make sure we do or tell me in advance”. This usually will put a stop to any unethical bait and switch tactics.

 

Bait and switch false alarm

Ironically, the problem is so rampant that even when there’s a valid reason for an unavailable apartment to continue appearing “active” on a website, renters will sometimes just assume it’s a bait and switch. But there are some false alarms.

Here are some legitimate reasons for why a listing may appear to be “bait and switch” when it is not:

• The apartment has an application but isn’t officially rented
• It was recently rented (last day or so) but broker/landlord did not have a chance yet to take the apartment off the website
• The apartment is awaiting board approval (like a coop or condo)
• The move in date is several months out so while not available yet, it will be available soon.

In sum, when a lister advertises an extremely affordable “too good to be true” apartment, be cautious.  If they say it is not available anymore ask why not.  If it does not fit one of the reasonable explanations above, you may want to just consider working with someone else.  Unethical behavior at this early stage is usually a warning sign.

For more NYC rental tips, please go to frele.com/learn.

This article was written by:
Phil Horigan, NYC Real Estate Veteran
Founder, Frēlē, the free and honest NYC rental marketplace
Producer, Phil’s NYC Rental Tips [YouTube Channel]
Blogger: flowfreely.com
Instagram: @philiphorigan

Phil has been a licensed NYC real estate agent since 2004 working for some of the top real estate brokerage firms in the industry.  He founded Leasebreak.com in 2013, and Frēlē in 2017.  Frēlē and Leasebreak are free and transparent rental marketplaces to search for or post apartments for rent in NYC

Go to frele.com to search for NYC apartments (free service).