CraigsList Rental Scam Alert (documentation, agents, sale, price)

[Gretchen B]

I just wanted to let agents and renters know about an internet rental scam currently going on.

Here is the scenario of what has happened in my area (this was an email sent out to our MLS members):

"I am sending this so you can warn our members of this internet scam that is
going on. I have a property for lease for one of my clients and recently had
several people call regarding an ad on Craigslist that I did not post. The
ad had pictures of the property and detailed information. When the
interested parties would inquire via e-mail, the scam artist was posing as
the owner, quoting a rent per month of about 1/2 of the market rent,
included an application to be completed and requested they send the first
months rent + security deposit after which he would send the keys! The
individual was very convincing, said he just wanted someone to take care of
his house and would rent it to them as long as they wanted! The scam artist
is using a yahoo e-mail address with my name in it! I have contacted the
FBI, attorney general and yahoo but don't know what the outcome will be. We
need to warn our clients that this is going on so they can be aware."

So please be careful out there. Don't rent anything sight unseen, and check out the ownership via County websites or call the County to verify if the person you're dealing with is the owner (or a reputable property management company).

[Lacerta]

This is really common.

I heard about this happening a year or so back, where the criminal actually "rented" the same property to like 30 people. Made off with like $100,000 or so and the owner had a lot of very angry people knocking on the door and wanting to take occupancy.

Happens to people who have their house listed for sale as well.

[Lacerta]

Also be aware of the reverse scam.

You list a house for rent on Craigslist. You get a response back from someone asking for information about the house, the rent, the terms, etc.

Everything seems normal, except the tone of the questions might seem a little off, and the English is usually very bad. One of the questions they ask is along the lines of "If I rent for a year, what would be the total owed"? except the grammar would be worse.

What this scam is, is that they want to send you a big check for over the amount you tell them for some reason they will make up. Then they want you to send the difference back to them. Weeks later, after you've written a check back out, their check bounces, yours has already cleared. The bank is unhappy with you.

This scam has many different forms. I've even see it crop up as a Job Opportunity, where you are a processor for a company. They send you a bunch of small checks, you hold "your cut" out of the checks, and forward the rest to a 3rd party. The small ones at the beginning usually clear, to lure you in, and get your trust. They then send you a large check and get you for a large sum all at once. I've heard of people losing their entire life savings this way.

[tamitrail]

All goes with the saying: "You get what you pay for." Craigslist is free. Free for you to market your property and free for any loon to remarket it any way they choose.

[middle-aged mom]

I was working with FSBO sellers and they decided to list with me. I discovered they were renters, not the owners.

Then there was a terrific couple who fell in love with the Open House I was sitting and were prepared to make a full price offer. They also wanted me to list their current home to accomplish the goal. Too bad, they too were renters, not the owners of the home they wanted to sell.

[suki03]

Yup, this scam has happened before like the following article.

Article

[tamitrail]

How in the world did they think they were going to get away with that going through a realtor?

[DMenscha]

Originally Posted by tamitrail

How in the world did they think they were going to get away with that going through a realtor?

Because a lot of real estate agents aren't good at due diligence?

[the painter]

Completely understand! I had a house under lease purchase to a guy, he made a good down payment, paved the drive, put up chain fence and stayed about 8 mon. with no problems. He made pay'ts in person on time with certified checks, perfect right. Then I get a call from the next door neighbor asking why I didn't tell them the house was for sale again. The guy "sold" my house to a couple from out of state and moved out in the middle of the night and the new people showed up the next day. That was a nightmare. These people moved from CA to middle TN and had no where to go and no money to look elsewhere.

[tamitrail]

How does it happen? See, I'd never be a good criminal because I don't even understand how to accomplish this. Did the people just hand over cash? They didn't check anything on the tax records? There was no closing agent? How did the "seller" provide documentation necessary?