Summer is the busiest time of year for New York City’s already merciless rental market.

The desperation to secure housing rises with the temperature, making renters more vulnerable to falling for scams, or just putting up with shady business practices.

A Gothamist investigation found a pattern of fraud allegations against one self-described “real estate advisor” in Queens named David Michael whose real estate license was revoked more than a decade ago over misconduct charges, according to the New York Department of State. At least two dozen people have sued him in small claims court in Queens and Brooklyn. He denies the allegations against him.

The investigation highlights how difficult some renters said it was to reclaim deposit money they believed should have been returned after apartment deals fell through.

We spoke with several real estate experts about how you can avoid falling victim to rental scams, and what you can do if you think you’ve been defrauded.

Learn to spot sketchy listings

We New Yorkers experience a particular type of real estate FOMO. You meet someone with a “unicorn” apartment — way too big or in too great of a location for what they’re paying — and you think, “Why not me?”

But nearly all the experts we spoke to had the same words of wisdom to share about apartment hunting: “If it’s too good to be true, it probably is.” If the rent is unusually low for the neighborhood, size of apartment, or amenities, consider that a red flag.

Other unmistakable warning signs?

Listings that don’t include the full address of the apartment or name of the real estate agent or broker who listed should also arouse your spidey sense. If a listing advertises that good credit or income history aren’t necessary — that’s an indicator that something could be fishy.

Using websites like Craigslist or Facebook Marketplace can also be riskier than dedicated real estate sites like StreetEasy, Zillow or Realtor, which require listers to have licenses, or real estate company websites.

Vetting the agents and brokers you’re working with

Apartment hunts can be a whirlwind, but it’s important to do some research on whom you’re dealing with. New York State and New York City require anyone who’s showing, leasing, buying or selling properties on behalf of others for compensation to have a real estate license.

The Department of State has an online directory of all licenses issued in the state for both individual brokers, salespeople and real estate businesses. If you enter the name of the person or company you’re working with and nothing comes up, they’re not licensed.

Neil Garfinkel, real estate expert and managing partner at the law firm Abrams Garfinkel Margolis Bergson, said it’s also a good idea to Google the broker’s name and see what people are saying about them online.

“ With a lot of these scam artists, you probably would figure out or find out about them once you looked, so verifying who you're dealing with is super important,” he said. “ If something seems sketchy, go with your gut.”

You should also look beyond the first few search results — while some brokers may have good reviews that show up on one platform, you might find horror stories on another. Be comprehensive. Check Yelp, Facebook Reddit and Google, among others.

Know that 'good faith' deposits to hold apartments are illegal

Good faith deposits or “earnest money” to hold apartments or take them off the market were made illegal by a 2019 law that capped the amount tenants can be charged before a lease is signed to a $20 application fee. Legally, you can only be asked to pay a deposit once you’ve signed a lease.

Gothamist’s investigation included interviews with more than a dozen people who said Michael asked them to pay good faith deposits that were then never refunded after the promised apartments never materialized. He acknowledged that he took good-faith deposits, some of which he hadn’t returned, but he denied he’d done anything wrong.

Gary Malin, Chief Operating Officer at The Corcoran Group, who’s worked in real estate for over two decades, said there are still some legitimate, “old school” licensed brokers who continue to request good faith deposits — as a sales tactic to create a sense of urgency, not to steal the money — even though it’s against the law. If you’re asked to pay one, Malin said you should reach out to their manager or company.

“ This is an age-old problem that I've heard about this industry for as long as I've been in it,” he said.

Bad actors can use good faith deposits to take money without following through on an apartment. To be safe, it’s best to not pay anything more than that $20 application fee before a lease is signed.

Never send money to a broker you haven’t met. Avoid direct payments and cash apps.

Garfinkel said it’s important to never send deposit money to someone you haven’t met, or for an apartment you haven’t seen in person. He said he often hears from other brokers that someone is impersonating them online. Even if you do meet a broker and see an apartment, he advises against sending your payment straight to them.

“ If any individual broker said, ‘Send me the money directly,’ I would not do that,” Garfinkel said.

Also avoid money transfer apps like Zelle, Venmo and Cash App. Deposits should go directly to the landlord or to an escrow account — which acts as a neutral third party that holds the money until contract conditions are met.

Think you got scammed? Here’s what to do.

While we spoke to several people who said they reported their situations to the NYPD, the New York State Attorney General and the Queens District Attorney to no immediate results — experts say it’s still important to report if you believed you were a victim of a scam to law enforcement when it happens. That’s because to put together a criminal case, prosecutors need to identify a pattern of intentional fraud.

According to John Jay criminal justice professor and former white-collar crime prosecutor Dianne Peress, rental fraud cases could fall under two crime categories: grand larceny and scheme to defraud. Peress said it’s crucial that people report when they believe they are the victims of a scam so law enforcement can look for trends and stop alleged fraudsters.

“ It's not just the person's individual complaint,” she said, adding that prosecutors who specialize in real estate crime “will put together a pattern” if multiple report criminal cases of fraud.

Before you file a report, Peress and other experts advise gathering as much information as possible, including your contract, proof of payment and any relevant emails or screen shots of text messages. And if you discover the person you dealt with wasn’t licensed, it’s important to state that clearly when you report your situation to the police and other officials.

An NYPD spokesperson said it directs contract disagreements under $10,000 to small claims court. But if you can show someone misrepresented themselves, it could amount to a crime.

Other agencies that handle complaints about the real estate industry in New York City:

What about small claims court?

Small claims court is another option for trying to get your money back. But you should beware that winning your claim is just part of the battle and there is no guarantee you’ll ever see a dime. In fact, many people never do.

Enforcing the judgment yourself involves finding out where the person who owes you money keeps theirs — often by filing what’s called an information subpoena to banks to find their account numbers, and hiring a court marshal to retrieve the money for you. In the cases we reported on, no one was able to get their money back through this process.