You can probably guess what happens next:
An unsuspecting consumer sees the property rental ad on Craig's List (or similar list) and thinks he's found a great deal.The consumer wastes no time securing a rental application and hurriedly sends in the information and any fee required for processing.The applicant is accepted (of course), and is prompted to send in the first month's rent and a security deposit. He still doesn't suspect anything is wrong.Dan Lawrence offers the first red flag to watch out for before any information or money changes hands: "The individuals who run these scams are always out of town, and all correspondence and interaction is via email. They never show the property because they don't have access. They insist the deposit be sent via Western Union or Money Order so that it cannot be recovered, and is difficult to trace."
What happens next? The new tenant (and his family if he has one) tries to move into the rental home. There may very well be a home at the advertised address, but it's not for rent! It might belong to someone else (who by now has bought the place) or it's still listed under a realtor as being for sale.
The situation gets worse.
Rental Scams Target Individuals for Easy Cash and Identity Theft
Remember the rental application that was sent (along with money) to secure the rental property? The chances are very good that the unassuming consumer filled in all the blanks, including (but not limited to), his name, address, phone number, driver's license number, employer and his Social Security number. Banking information might also have been included. The scammed consumer now becomes a victim of identity theft in addition to losing all the rent/deposit money he had wired.
There are ways to avoid becoming the victim of a rental property scam. Here are a few common guidelines for safely securing rental property, whether it's local or out of town:
It's always best to conduct business in person. If face-to-face is not an option, then at the very least conduct a background check of the property owner or management company. Consult the Better Business Bureau for a listing of the company. You can even search the Property Appraiser's website in the area where the property is being rented to make sure the owner/renting party is legit. Get the results before you fill out any application or send any money.Never wire funds for the purpose of securing rental property (or anything else for that matter, which could end up being a phony transaction).Check out the rental property in person. Even if the company is legit, the house shown in a curb-side photo may be less than appealing on the inside.Never give out any financial or banking information or personal information such as your Social Security number.Anyone can become a victim of a scam if he's not careful. The winter Olympics of 2010 started off on a dismal note for one athlete. His parents and friends from New York, who'd planned to stay together at the Vancouver games, were bilked out of $7,332 by someone who was to rent them a home in Whistler, British Columbia. Hearing of the misfortune, a number of residents came forward to save the day with donations of money and offers of a place to stay. Unfortunately, not everyone involved in a rental property scam is so lucky.
Use common sense when securing rental property, especially if it's not a local residence, and be sure to question anything that doesn't seem right. Suspicious property listings on Craigs List should be sent to "abuse@craigslist.org". Scams of all kinds are everywhere are on the rise the direct result of greed and desperate times. Do whatever it takes to avoid becoming a scam victim; it pays to not trust anyone when it comes to your hard-earned money. The effort may save a lot of heartache later on.
SourcesPensacola News Journal (HomeFinder Saturday Real Estate Guide) "Beware of Rental Scam" (Dan Lawrence, May 5, 2012, Page 1E).
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