Note from Joe Spake: I published this post twice in 2015, and an similar posts a number of times before that, yet I still get trying to verify the to-good-to-be-true claims from rental scammers on Craigslist. We will never know how many people lose money or put themselves at personal risk by trespassing at the direction of the scammers. I really wish I didn’t have to publish it again, but I feel that the more who aware, the less chance there is for someone to scammed. Re-published from June, 2015:
Don’t be duped by this pervasive Craigslist scam
If you are desperate for a place to rent, and you are willing to look at ANY possibility, a 5 bedroom, 3 bath home in a high end neighborhood for $1300/month may sound like a dream come true. This is a pervasive scam on Craigslist that must be raking in money for the scammers, because it has been going on for years, unchecked. I checked back through the archives, and it’s been a big enough deal that I wrote about it in 2011, twice in 2012 (HERE and HERE), and most recently this past March.
Basically the scammer strips the pictures and listing data from a legitimate listing posted online, then offers the property for rent at half or less of the going market rate. All the contacts are by email until the sucker is hooked into wiring a deposit. In the newest twist, the scammers first email response says that they are in the process of firing their agent and warns them not to contact the Realtor on the For Sale sign. The email also encourages the renters to walk around the property, peer in windows, etc. to make sure they like the property. See any problems here? Well the neighbors of the last listing of mine that fell victim to the scam sure did, as the excited potential renters showed up at 9:30 PM and were in the back yard looking in windows.
My most recent victimization by the scam happened a week ago, and it took me and my local Realtor association quite a while to get the ad taken down. The scammers even built an email account in the name of the property owner. In the meantime the scammers’ marks were being sent to the property. Most did as they were told and ignored my sign in the yard, but a couple called because the deal seemed so good they thought they had better check it out more thoroughly. Some may have wired the deposit and are expecting a quick move-in.
Tips to help you avoid scams
Here are a few tips if you are shopping for a rental property on line. PLEASE pay close attention to #3. Many legitimate rentals are advertised on line, yes, and even on Craigslist, but keep these guidelines in mind:
- Check the property on Zillow or Trulia to see if it is listed for sale and call the listing agent. If there is a For Sale sign in the yard call the agent or company.
- Make verbal contact with the person offering the property and arrange to see it.
- For your safety, never set foot onto a property without the person offering the property being there with you.
- Don’t sign a lease or tender a deposit until you have been inside the property.
- Never wire money for a deposit.
- Review the lease. Hire an attorney to review it if necessary.
- And please, please don’t waste your time on this scam. If the rent is too good to be true, it is most likely a scam.
In general, you can sidestep would-be scammers by following these common-sense rules:
- DEAL LOCALLY WITH FOLKS YOU CAN MEET IN PERSON – follow this one rule and avoid 99% of scam attempts on craigslist.
- NEVER WIRE FUNDS VIA WESTERN UNION, MONEYGRAM or any other wire service – anyone who asks you to do so is a scammer.
- FAKE CASHIER CHECKS & MONEY ORDERS ARE COMMON, and BANKS WILL CASH THEM AND THEN HOLD YOU RESPONSIBLE when the fake is discovered weeks later.
- CRAIGSLIST IS NOT INVOLVED IN ANY TRANSACTION, and does not handle payments, guarantee transactions, provide escrow services, or offer “buyer protection” or “seller certification”
- NEVER GIVE OUT FINANCIAL INFORMATION (bank account number, social security number, eBay/PayPal info, etc.)
- AVOID DEALS INVOLVING SHIPPING OR ESCROW SERVICES and know that ONLY A SCAMMER WILL “GUARANTEE” YOUR TRANSACTION.
- DO NOT RENT HOUSING WITHOUT SEEING THE INTERIOR, OR PURCHASE EXPENSIVE ITEMS SIGHT-UNSEEN – in all likelihood that housing unit is not actually for rent and that cheap item does not exist.
- DO NOT SUBMIT TO CREDIT CHECKS OR BACKGROUND CHECKS FOR A JOB OR FOR HOUSING UNTIL YOU HAVE MET THE INTERVIEWER OR LANDLORD/AGENT IN PERSON.
BEWARE!! If something sounds too good to be true, it probably is. Be very wary. Don’t say you haven’t been warned!
Be careful out there! My company and I do not handle rental properties, but there are plenty of reputable folks who do; and a lot of them advertise legitimate rentals on Craigslist.
Visit (and like) my Facebook Page for lots more real estate news and information.
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