Mortgages

How to Avoid Housing Rental Scams

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For most of us, the largest chunk of our income goes to paying for a roof over our heads. Whether you are renting or buying, you want to make sure you aren’t being taken advantage of. If you are a renter, there are some popular scams you need to watch out for.

Situations to Avoid

Illegal subleases are actually fairly common, especially in urban areas with a shortage of rental properties, like New York. A sublease is when you lease an apartment from a renter. An illegal sublease is when this isn’t allowed and is done anyway. Tenants of illegal subleases can be evicted or fined.

You also want to watch out for people who pose as legitimate landlords or agents and demand money before you sign a lease. They take the money, and you still don’t have a rental. Legitimate landlords and rental agents do not ask for security deposits before a lease is ready to be signed.

There have been reports of a rental scam similar to those “Nigerian Prince” email scams. These thieves claim to live abroad and own property in the United States. They request money to be sent or wired to them.

Identity thieves pretend to be landlords or rental agents with the goal of stealing your identity. You do not need to give your Social Security number to simply look at an apartment. Becoming an identity theft victim can do major damage to your credit.

How to Spot a Scam

Often scammers give signs in the very first contact that they are not to be trusted. Pay attention to clues and proceed with caution. When communicating with potential landlords via email (in response to Craigslist ads or other real estate classified ads) watch out for generic greetings to Sir or Madam.

Also be wary of emails full of misspellings – these communications are business dealings and should be professional. Sometimes you may need to rent a home without seeing it (if, for example, you are being relocated for work on a short time frame) but avoid dealing with people who pressure you to sign without seeing a home before you provide money.

Take Action

Don’t be afraid to ask questions. In places like New York, where real estate goes quickly, you may feel pressured to act fast, but this is a big decision. If you feel unnecessary stress from one party, consider it a red flag.

Do research – check property records to see who actually owns the building you are thinking of moving into. Check to see if this information matches what you are being provided. If it’s not, ask why. Maybe there’s a logic explantion or maybe you are saving yourself from being scammed.

Try not to be too enthusiastic. If you appear too eager, you open yourself up to not getting the best deal for your money.

Along those lines, be wary of anyone who says you don’t need to sign a lease. A lease offers legal protection to you and the landlord for this business transaction.

Choosing a home isn’t easy. Don’t let your emotions cloud the fact that this is ultimately a business decision. You are paying for something and want to make sure you get what you pay for.

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  • Guest

    Recognizing common real
    estate scams and tricks can prevent you from falling into a victim. It can sometimes be difficult to know what is
    legitimate or not. Since real estate involves money, swindlers won’t stop to
    seize every opportunity they can in cheating would-be buyers or renters.
    Working with a reputable real estate agent is one way to ensure you will be on
    the right path.

  • http://www.laffey.com/ Laffey Fine Homes

    It can sometimes be difficult to know what is legitimate or not. Since real estate involves money, swindlers won’t stop to seize every opportunity they can in cheating would-be buyers or renters. Working with a reputable real estate agent is one way to ensure you will be on the right path.

  • Jackie Doornik

    I am a California Realtor and this SCAM has been posted on Trulia. DO NOT SEND ANY MONEY. Hello,
    Thanks for your interest and inquiries about my house. Yes the house
    is still available for rent and we are looking for a responsible
    person/family to occupy and maintain the house now that we are not
    around. My wife and i just traveled to West Africa for a program called
    (UNDP), the program is taking place in three major countries in Europe,
    Africa, UK . We will be away for 4 to 5 years or more that is why I
    have made up my mind to put up my house for rent to whom ever that will
    take good care of it.
    Also how long do you intend to stay? How soon do you intend to move in?

    Utilities included in monthly rent
    FEATURES : Laundry, Electric Range, Electric Heat, Master Bedroom,
    Playground, Car Park.AMENITIES: Air Conditioning, Patio/Party Deck,
    Cable TV, Ceiling Fans, 24 hours Internet service, Dishwasher, Firepit,
    Garbage Disposal, Microwave, security alarm, Pets Friendly,
    Refrigerator, Washer / Dryer.

    DETAILS ABOUT THE HOUSE..
    Number of bedrooms:3
    Number of bathrooms:3

    Rental price: $700 per month and security Deposit is $700 (Security
    Deposits Refundable) .

    House Address: 18135 Lakeview Dr, Victorville, CA 92395

    Pets Welcome

    PLEASE TELL US ABOUT YOURSELF
    1)Your Full Name________________________
    2)Current Address_______________________ ______
    3)Phone Number (________)Best time to reach you ?
    4)State________________
    5)City__________________
    6) Zip______________
    7)Are you married______________________
    8)Do you have Kids__________
    9)Do you have a pet______________
    10)Do you have a car______________________
    11)Occupation______________
    12)How many people will be living in the house___________
    13)Reasons for Leaving present home_________________
    14)How long lease are you looking for______________
    15)How soon do you intend moving in________________
    16)Date of Birth________________
    17)Numbers of Cars________________
    18)A picture of occupant________________
    19)How soon you make the payment________________
    20)How soon do you want to receive the keys/documents________________
    ============================== ============== =========
    Application Comment
    ============================== ============== =========
    TAKE NOTE: YOU CAN ONLY DRIVE BY AND SEE MY HOUSE FROM THE OUTSIDE OR
    WALK AROUND THE SURROUNDINGS,BUT IF YOU DRIVE BY THE HOUSE YOU MAY SEE
    A SIGN THERE,YOU HAVE NOTHING TO WORRY ABOUT IT BELONGS TO OUR
    PREVIOUS AGENT SO YOU HAVE ABSOLUTELY NOTHING TO WORRY ABOUT AND YOU
    DON’T HAVE TO CALL THEM BECAUSE THEY DO NOT HAVE ACCESS TO THE HOME
    ANYMORE!

    Thanks And God Bless

    Todd Mark & Family

    • http://www.credit.com/ Credit.com Credit Experts

      Very interesting. Thanks for sharing that.

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