Beware: Rental Property Fraud Typically during the summer months, we will see an increase in rental property fraud. The demand for a summer rental property is high. With this in mind, there are many con-artists looking to take advantage of unsuspecting citizens. The most common fraud occurs on Craigslist or any online advertisement for rental properties. The Scam There are many legitimate properties listed for rent with genuine photographs. The fraud typically occurs when the con-artist obtains the information of the real owner/property manager. The fraudulent advertisements can include photographs that have been stolen from genuine listings. Using the pictures obtained online, the con-artist will create a new advertisement with his/her phone number or email address, but will pose as the owner/property manager. In many cases, they will use the owner/property manager’s real name. This way, if you check with a neighbor to see if the owner/property manager is real, the neighbor will usually confirm the name. Due to the high demand and “rush to rent,” the con-artist will ask for the first & last month rent or deposit in cash or with a prepaid card. This is done quickly to increase the chances of securing the rental property. The con-artist will create a sense of urgency, forcing the victim to make a quick decision. The more sophisticated con-artists will even have a fraudulent contract in hand. Once the funds are exchanged, the con-artist will disappear with money that is almost impossible to track. The email address and the prepaid/pay-as-you-go cell phone number are usually discarded. Abandoned or Foreclosed Property Abandoned or foreclosed properties will also be used. Since these properties are not maintained, con-artists will often times force entry and even change the locks. When the victim meets with the con-artist, they will have the keys to the front door and, probably, a fraudulent contract. With bank-owned properties, the fraud can continue for years. Red Flags: • Payment requested before meeting the owner/property manager or viewing the property. • Payment requested in cash, wired electronically, money order, Green Dot, MoneyGram, Western Union or any prepaid card. • Monthly rent is too good to be true. • The owner/property manager is very eager to rent to you without an employment, background or credit check. • A long distance owner/property manager, sometimes claiming to be out of state or out of the country. • Email communication contains poor grammar and typos. Ways to protect yourself: • The golden rule of fraud: If it’s too good to be true, it probably is. • Meet the owner/property manager at the property and have them show you around. Although a con-artist can force entry and change the locks, this will expose and eliminate a significant percentage of the less sophisticated con-artists. • Ask for the owner/property manager’s contact information, including physical address. Do an online search of the owner/property manager. • Research what the “going rate” is for rental properties in the immediate area. • Keep all contracts, documents and receipts for payments. Start the paper trail. • Ask more questions! Who can be contacted for after-hours or emergency situations? Who pays the gas, electric or water bill? What is the process when something needs to be fixed? • Get a receipt for every payment. For additional information, click on the link to The Federal Trade Commission complaint assistant. https://ftccomplaintassistant.gov/#crnt
Posted on: Wed, 28 May 2014 23:20:38 +0000
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