Real Estate Scams
By Jeff Gould
Over the years scams involving real estate to rip off consumers has grown rapidly. Websites like Craigslist seem to be a breeding ground for these scams. While I don’t believe that Craigslist is at fault for these scams, the fact is allot of these scams are found on Craigslist. Many of the crooks orchestrating these scams are highly skilled and extremely persuasive. It makes it very difficult to recognize the scam. Here is what to look for and how to protect yourself.
The Scam!
Crooks know that it takes hard work and that most renters have a difficult time finding a good rental property that meets their needs. They also know that any “good deal” is really hard to pass up. These crooks use Craigslist, real estate websites, vacation rental websites and bulletin boards to find real properties for rent. The crooks will copy the information and photos from these real ads and list them in other places using the crooks contact information. In some cases, the altered ads even use the name of the person who posted the original ad. In some cases these crooks list properties that don’t exist or are not really for rent and place rentals ads for these properties. In all cases they price these rentals at or below the current market rents. This generates a lot of interest in the property for them.
· Don’t Actually Show You The Property – These crooks will come up with every excuse in the book as to why they cannot show you the property. They typically will ask you to drive by the property without letting you see the inside of the home.
· Ask For Money Before You Sign a Lease – First of all never part with money before you read a contract and the fine print. In this case the crooks really don’t want you to sign a lease because they do not have anything to lease you. They will ask you for a security deposit or first month’s rent or both, once they get it they will just disappear.
· Wire Money – If anyone asked you to wire money for the application fee, rent deposit or first month’s rent, odds are it is a scam! I cannot think of a good reason to wire money to pay for any of these. This holds true even if you get a lease or contract first. Keep in mind that wiring money is just like sending cash. Once you send it you have no way to get it back. If you are unsure just look for a different property!
Protect Yourself
The easiest way to protect yourself is find a reputable property management company or Realtor that specializes in rentals, find a property and lease through them. If this is not an option make sure you do the follow:
- Always ask landlords and other agents for identification. If they give you a business card ask for a second form of identification.
- Do your research. Search online for the agents name, the landlord and the property. Look at public records and find out who the owner is. In Hillsborough County, Florida you can look at the Hillsborough County Property Appraiser Website.
- Trust your gut. Pay attention to your instincts. They are usually correct. If you have a bad feeling or something just does not feel right, walk away from the deal.
- Never let anyone pressure you into signing anything.
- Don’t deal with middlemen. Unless it is a family member of the owner there is usually no good reason for a middleman.
Ultimately you just needs to be alert and aware that this is going on. I had one of my for sale listings copied and posted on Craigslist as a rental. Lucky for us the potential renter drove by the property and called my number on my for sale sign. To my surprise the call started by saying I’m calling about the rental you have on… Well that caught my attention and after further questioning we figured out it was a scam. I reported it to Craigslist and the local law enforcement agency. I am guessing no one was ever caught but at least we did something. If you find yourself the target of a rental scam, report it to your local law enforcement agency and to the Federal Trade Commission (FTC). Also ensure you contact the website where the ad was posted so it can be removed and no one becomes a victim.
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About the author: The above Real Estate article “Real Estate Scams”was written by Jeff Gould, a nationally recognized local real estate expert. Jeff can be reached via email at This email address is being protected from spambots. You need JavaScript enabled to view it. or by phone/text at (813) 421-3007. If you are looking to sell or buy a Central Florida home, Jeff is your local and trusted professional.
You’ll find Jeff and his team selling homes in the Tampa Bay, Florida and surrounding areas. Including Lithia, FishHawk, Riverview, Valrico, Brandon and Tampa.
Visit Jeff's website at www.JeffGould.realtor.
© 2015, Jeff Gould. All rights reserved.
