By Judy Reed
If you are trying to sell your home, don’t be surprised if someone comes knocking at your door and asks if it’s for rent. Or, if you’ve already moved out and are still trying to sell it, you might come by to find someone living there. That’s because scammers are stealing house for sale listings and putting them up on Craigslist as rentals.
Local realtor Brynadette Powell, with Arthur K. Eggerding Realty, said this happened to a home she had listed recently on Hoskins. “The lady of the house was home sick, and she had four people come to the door in two days asking if it was for rent,” she explained. She said the next day she was in a broker class and received three messages saying the home was listed on Craigslist to rent for $1200 a month.
“I sent the info to Craigslist and they took it down in about two hours,” said Powell.
Powell said she emailed the poster of the ad, pretending she was interested. She asked who they were, and they emailed back a form letter saying that they had recently settled in Nigeria, and sent her an application. She was told to send them the first month’s rent and a security deposit and she could move in.
Powell said that sometimes the listers tell people that they moved and forgot to leave a key, and that they can just break in.
“I also just recently had a buyer for another agent’s house, and that listing was also hijacked. There were people trying to break into the house because they thought they had a lease,” she explained.
Powell said that one agent she knows called the police about it. “The agent was told that the people who sent the money had a crime against them, but not the owners,” she said.
It’s possible that people get embarrassed and don’t want to report it, however, or they don’t realize they can. According to the fraud division at the Kent County Sheriff Department, there haven’t been any reports in our area recently, but they are aware of the problem, because it has been around awhile.
Powell said she now tries to avert this type of problem by putting a sign on the door that says, “This house is not for rent.”
Powell said part of the problem is that there are not enough rentals out there to meet demand, especially in Cedar Springs. “Cedar Springs is amazing in regards to people sticking around. There just aren’t enough rentals out there,” she explained.
Phil Catlett, of the Better Business Bureau of Western Michigan, is also aware of the problem. “Scammers look on Craig’s List, or M-Live, or a Real Estate website, and find homes for sale. The scammer creates an ad listing the property for rent. Every year we learn of someone getting ripped off this way,” he said.
Catlett supplied the following info from the BBB:
Researchers reviewed more than 2 million for-rent posts and found 29,000 fake listings in 20 major cities. Of those, there were three key types of scams. In the first, a fake post instructs a would-be tenant to purchase a credit report. The scammer gets a commission from the credit reporting site, even though there is no property for rent.
In another scheme, con artists duplicate rental listings from other sites and post on Craigslist at a lower price. Prospective renters pay a deposit via wire transfer. Another pervasive scam is “realtor service” companies. Targets are asked to pay fees to access listings of pre-foreclosure rentals or rent-to-own properties. In the majority of cases, the companies leading the scams have no connection to the properties listed.
How to Spot a Rental Scam:
- Don’t wire money or use a prepaid debit card: You should never pay a security deposit or first month’s rent by prepaid debit card or wire transfer. These payments are the same as sending cash – once you send it, you have no way to get it back.
- Watch out for deals that sound too good: Scammers lure in targets by promising low rents, great amenities and other perks. If the price seems much better than offered elsewhere, it may be a scam.
- See the property in person: Don’t send money to someone you’ve never met for an apartment you haven’t seen. If you can’t visit an apartment or house yourself, ask someone you trust to go and confirm that it is what was advertised.
- Don’t fall for the overseas landlord story: Scammers often claim to be out of the country and instruct targets to send money overseas.
- Search for the same ad in other cities: Search for the listing online. If you find the same ad listed in other cities, that’s a huge red flag.
For More Information
Read the full report from New York University’s Tandon School of Engineering on rental scams on Craigslist. The report is the first systematic study of online rental scams. http://www.prnewswire.com/news-releases/renter-beware-study-finds-craigslist-catches-barely-half-of-scam-rental-listings-300228037.html.