The California Department of Real Estate (DRE) issued a consumer alert recently warning people to beware of imposter landlords when signing a lease or paying money to rent a home or condo. Be sure the person acting as landlord is actually the owner of the property. Imposters often are able to convince potential renters to pay money, which may include a first and last month's rent and a security deposit, as well as follow up rental payments, for a house that is not owned by the supposed landlord.
Unfortunately, I had a client earlier this year fall victim to such a scam. He had fallen on tough financial times due to the economic recession and we were in the process of short selling his condo. Searching on the Internet for another place to live, he came across an ad listing another condo in his same complex for rent at an incredibly low rate. He talked with the "owner," who had a great story about being on a temporary assignment in Europe and just wanted someone to live in the condo for a year or two until he decided to either return or stay in Europe.
Long story short, my client paid first and last month's rent along with a security deposit to someone who in reality did not own the condo and disappeared after the money was paid. Talk about adding insult to injury. My client was selling his own condo because he couldn't afford to keep it and on top of that loses a couple thousand dollars in a rental fraud scam.
If you are looking for a place to rent in San Jose or Santa Clara County, beware! You should qualify the landlord as much as they will be qualifying you as a tenant. Click here for more information from the DRE on how to spot potential scams.
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