New Internet/ Real Estate Scam
A few weeks ago I was contacted by a local REALTOR. She alerted me to a problem she was having with her rental properties and Craig’s List. It appears that someone is stealing her rental listings and posting them! They are even using this REALTOR’s name in the ads. (And one advertisement actually had the name of the owner of the home listed). Here’s how the scam goes:
1. Person posts a property for rent using the REALTOR’s pictures and name, but for less money than what it is actually on the market for. All of this information has been gathered from housing databases on the internet.
2. Prospective renters contact the “REALTOR,” via a free email address that has been set up, to inquire about the property.
3. The “REALTOR” sends the prospective tenant an email application that is really just a few questions about yourself including: Your Name, Your Current Address, Your Age, Your Marital Status, Your Occupation, and Your Cell and Work Phone Numbers. By the way, you have just given more than enough information about yourself to have your identity stolen.
4. The prospective tenant fills out the questionnaire and email it back to the “REALTOR.”
5. The “REALTOR” contacts the prospective tenant in a few short days and lets them know their application has been approved. The “REALTOR” then gives the prospective tenant an address they can send the security deposit and first months rent to. (Or) The “REALTOR” will set up an appointment to meet the prospective tenant at the rental property; putting the prospective tenant in danger!
6. The prospective tenant never receives keys to the property and can not track down the person that they sent the money to. Or, the prospective tenant does receive keys and moves into a property that they have no right to live in. This results in a lengthy court battle between the tenant and the actual owner of the property. Or even worse, the prospective tenant is mugged at the property showing.
If you are looking for a rental property there are some important things to remember. First, anyone can post anything on Craig’s List! There is no way of proving the advertiser has the right to sell or rent the product. Second, google the listing. If the home is for rent through a real estate company you should be able to find the information on multiple websites. Third, if the price looks too good to be true, it usually is. Make sure you research the average rental costs in the area you want to live in. Fourth, no owner will conduct a rental transaction entirely over the internet! It’s just not going to happen. If there is an absentee owner, they will most likely hire a real estate company to promote the property and their best interests. If an owner of a rental property is requiring everything to be handled over the internet, walk away! Fifth, if you are going to view a rental property, do not go alone. Always take a friend with you. And, never view properties after dark. Sixth, hire a REALTOR! REALTORS can help you find rental properties. REALTORS also have access to databases that allow them to verify property ownership and can help verify that the property is not on its way to foreclosure.
Don’t fall victim to the latest real estate scam! If you come across one of these scams, contact your local sheriff’s office and file a complaint.
Wow that’s a little scary…thanks for the tip! I’m going to be apartment-hunting soon so I definitely appreciate the advice! And I agree – going through a realtor is always the best option.
Sarah,
This is not just happening with rentals. We have had people take our reisdentail listings, whether or not they are on Craigs List, and then post them to Craigs List as a very cheap rental. We have asked our agents to check Craigs List to make sure their houses they have for sale are not on their.
Julia – Thanks for vistiting Sarahiously Speaking! Come back any time!
Donna – I had seen this happen with sales in GA, but not in our area yet. I think it is very important for all REALTORS and home owners to google their address to make sure they don’t fall victim to a scam. This is a crazy world we live in!
Scams spring eternal. This is a new twist on the – “I’m overseas, so I’ll mail you the rent check. Because of currency problems, It will be over the rental amount, so please send me back the difference. This has caught several Realtors that I know who are now out about $1000 each. Thanks for the info. I’ll pass it on.