Rental Scammers Are Kicking It Up a Notch
There are always people looking to take advantage of an unsuspecting consumer. One way is to scan homes for sale, particularly smaller homes, and then post them as rentals on sites such as CraigsList or HotPads.
If in doubt about a possible rental, always call the Company that has the for sale sign in front of the house for the true story. It will save a lot of aggravation and money.
Rental Scammers Are Kicking It Up a Notch
Would you hand over deposit money for a rental sight unseen? It does happen sometimes if the renter is out of state, finds the right property through the listing description and the pictures, and proceeds with the rental. However, that is typically (hopefully) done through a realtor who the renter knows can be trusted to assist.
But what about the renter who sees a by-owner ad online, makes contact via email with the *owner*, is told there’s a lot of interest in the place and if he is interested, should wire the deposits and the *owner* will send the keys?
A recent incident in the area involved a local resident who was scammed by a fake property owner. The would-be renter responded to an online rental ad that had been hijacked from a local brokerage by the scammers.
The ad included actual pictures and a full list of features. The *owner* claimed to be on a mission trip to Africa BUT here’s the twist…..he was going to arrange to have someone meet the renter at the property. Fortunately, the renter became suspicious and did not follow through. If he did, he might have been out 3,300 bucks.
The house was currently listed with a broker at $1,500 per month, but the scammer was offering it for $1,100 a month and wanted first and last month's rent and a one month security deposit. In CT, a landlord cannot ask for the last month's rent. See Rental Security Deposits in CT -- What Are the Limits?
What would have happened is the rental would not have been accessible because the *owner* in Africa had the keys, the renter would have been pressured to rent since there was SO much other interest, he would have been told all the pictures are online so the renter didn’t need to see it anyway, and the renter would have been coerced to wire funds to the *owner* in some foreign country quickly before someone else rented it.
While the inability or refusal to meet face-to-face before consummating a transaction should sound an alarm, this particular rental had a front man who was going to meet the renter at the property. This somewhat legitimized the transaction to the renter and might have made him feel more comfortable parting with his money.
Many, many unsuspecting individuals have been scammed by these online rental ads. The scammers like to advertise their rentals as available with pets being ok which attracts a lot more people. The rentals are also priced at a ‘too good to be true’ price. When an inquiry is made, the return email will usually state that interest is high, and they will only rent to qualified applicants and might tell you that you sound like the perfect applicant. They might send a credit application phishing for information and then the renter’s identity is compromised as well. They also set up the *owner* as someone they usually find on Facebook or some other networking site so again it appears to be legit.
While there are plenty of legitimate rentals by owner, you have to do due diligence.
Here are some tips to avoid being scammed online:
- Do not rent without seeing the interior.
- Never wire funds in payment for the deposits.
- Do not provide a copy of your passport or id or give out financial information until you verify legitimacy.
- Do not submit to a credit or background check until you meet the agent or landlord in person.
- Check who owns the property in the town records. Is this the person you are dealing with or is it someone else?
- Check the state government site to see if the property is in foreclosure.
And don't forget this –
Deal locally. Consider using a real estate agent to find a rental. Then you’ll be protected.
If you think you've been the victim of a fraud, contact the FTC Internet Fraud Complaint Center. Also, internet-based scams are typically handled by local law enforcement so place a call to the local police. Online ad users can also flag ads they suspect are scams by using the link on the ad page.
Be careful … and always use common sense.
Related post:
Need a Rental in Fairfield County CT?
Barbara Altieri, REALTOR
Listing and Buyer's Agent
Certified Short Sales Specialist
RealtyQuest Real Estate Sales and Services
203.656.4993 x29
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