With all the foreclosures, financial issues, and people in distress these days, people are looking for a good price on everything. Unfortunately, that always brings out the scammers who prey on people searching for a deal. One of the current frauds is when scammers find empty foreclosed homes and trick people into paying a security deposit on a bogus lease, even though they do not own nor have the right to rent it out. These scams typically start with an advertisement on a place like Craigslist.org. What hooks consumers is that the rental rate is well below market price. A potential renter might think, “What a deal!” but it's typically nothing more than a money-draining headache.
A con artist would typically schedule to meet you at the house to show the property. They could have the key for any variety of reasons, or may just have the door open when you arrive. In some cases, the con artist may have even broken into the home! Don't just judge a book by its cover either, as it's often the nicest, friendliest, and most likeable people who are not what they seem.
These scammers will typically show you around and act interested in your life and situation. They will usually tell you that speed is a must, as they have several other interested parties, using a line like, “Therefore, if you want the property, you must move quickly!” But beware — this is a ploy to encourage you to make a hasty decision.
Because the deal is so inexpensive, and the home seems in good enough shape, victims of these scams usually don't think twice about bringing the scammers a cashier's check or wiring the scammers a "security deposit" without first thinking through the situation carefully. Unfortunately, most of these victims never see their money again, nor do they even get to live in that house.
Scammers are difficult to track, as they'll change names and contact information often. They'll take as much money as they can from victims within a few short days before disappearing and moving on to the next scam, so be wary of any landlord who seems too pushy in getting you to commit to a rental property.
To best reduce your chances of falling victim to a rental scam, here are some tips. First, verify that the individual renting the property is in fact the owner or a representative of the owner. This might not be simple to do, but your money is at risk, so it is worth the legwork. Also, ask yourself these questions: Do they give you a local address where you can drop off the security deposit? Or the name of a company or real estate firm that you can call to verify? Did you see their car, or was it “hiding” somewhere nearby? Is their email address something like TomJones@prudentialcalifornia.com, or something like tomg1345@yahoo.com?
Finally, Google their email, phone number, name, the property address, and anything else related to the property and the renter to see if anything strange comes up. If after all of that you have concerns, do more research or pass on that rental. Trust your instincts!
In addition, try the direct approach. Tell the landlord that you really like the place and are ready to rent, but due to the foreclosures situation, you just need to verify their ownership. You can even go to a real estate sales professional, who should be able to log onto the local tax records to verify property ownership. If the name doesn’t match the person you met, there may be a problem. Alternatively, have them prove to you their ownership and/or meet you at the property a second time and ask additional questions.
Separately, if you do truly believe that someone is trying to defraud you, or you do get defrauded, make sure to report it to the police so others will be warned.
Overall, while the vast majority of rental properties are handled by honest people who own the properties and are just looking for good tenants, that isn’t always the case. By doing a little verification and checking when renting a property, you will hopefully ensure that you find a great place to live and not be the victim of a rental scam.
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