Beware of Rental Scams

Beware of Rental Scams

With so many rental sites available online today for marketing and finding properties, both renters and property managers need to be aware of scams that are on the rise. It’s important to be educated about the various scams happening in order to prevent becoming a victim.

Scamming is not a new concept. However, targeting renters, property owners and managers has been increasing due to internet searches. Rentalscams.org is a great source of understanding the rental scam movement. There are target groups for scammers, especially single-family homes and the senior population.

Mary Girsch-Bock from Propertymanager.com shares that in “one of the latest ploys, scammers will co-opt photos and other information from legitimate rental websites, lower the monthly rent, add a contact phone number and email, and collect multiple security deposits along the way. Others scammers will offer a quick deposit to hold a property, 'accidentally' overpaying and requesting a refund. This is a classic scam, and many have been taken in by the quality of the counterfeit money orders and cashier’s check they’ve received.”

The FBI has a department dedicated to helping educate about predators and assisting victims. Scammers are smart and tech savvy, so here are SIX Tips to avoid a rental scam:

1.  Be sure to find out what the going rates are in an area. RentBits is a quick source for finding out what homes and apartments are renting for in order to determine fair pricing. If you find a listing on a site like Craigslist, you need to know whether the monthly rent is comparable to the rest of the properties on the market. This helps you to know quickly if a deal is too good to be true, because as they say, “it probably is.” Low rent on a great property should be a big red flag!

2. Only deal with landlords or renters who are local. This is because according to fbi.gov, “Criminals search websites that list homes for sale. They take the information in those ads—lock, stock, and barrel—and post it, with their own e-mail address, in an ad on Craigslist (without Craigslist’s consent or knowledge) under the housing rentals category. To sweeten the pot, the houses are almost always listed with below-market rental rates.” If you are dealing with an out of towner, you need to obtain more information to verify they are truthfully representing themselves.

3. Never send money to a person or account without verifying the source first. The typical scammer explains they had to leave the country on a mission trip and asks that you wire the money to them in Nigeria or some other out of the country bank account. Do not fall for this tactic!

4. Beware of e-mail correspondence from the “landlord” that is written in poor or broken English. Chances are this person lives out of the country and is a scammer. If the email looks legitimate, collect additional information and make an appointment to view or show the property, but take someone with you. Notify others of where you are going and whom you are meeting. Chances are scammers will not show up if you let them know you have someone tagging along. They will opt for easier prey.

5. Never give out personal information, like your social security number, bank account number, credit card number or home address. This information opens the door for identity theft from scammers.

6. If you are collecting rent, make sure the security deposit clears before issuing the keys.  

Being able to go online to find a great rental property or tenants is important, so be sure to be smart, safe and expose any scams you see happening. This helps all sites stay legitimate sources for all. The best way to avoid scams is to work with a trusted property management company like McCreary Realty Management. We are here to serve you!

For more information see:

http://www.propertymanager.com/2016/02/5-ways-to-avoid-rental-scams/

https://www.fbi.gov/news/stories/2009/july/housingscam_072909

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