rental scam story
The Dark Web of Rental Scams: When Housing Fraud Hits Home
Darius Salehipour
August 29, 2023
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In the age of digital convenience, a new breed of crimes has emerged – housing fraud. Property managers, as well as potential tenants, are becoming victims of intricate and convincing scams. If you’re a property manager, being aware of these scams and having tools in place to detect them early can save you significant time, money, and heartache.
Online marketplaces such as Craigslist and Facebook Marketplace have become a breeding ground for scam artists. These platforms, which make it incredibly easy for anyone to list a property, can often lack rigorous vetting processes.
Here's an unnerving incident that showcases the audacity and intricacy of these rental scams. A resourceful property manager, hoping to take advantage of modern solutions, listed a property online equipped with a self-touring lock. But what was meant to be a simple convenience became a scammer's dream.
Taking the original listing, the scammer created a duplicate on Facebook Marketplace, impersonating the owner. They subsequently lured an unsuspecting renter to the property, coaxing them into submitting an application, a hefty deposit and 1st month's rent ($3,900), and even signing a lease. The scammer rekeyed the locks, allowing the renters full access.
The Property Manager received multiple missed calls from the property owner. The property manager thought the owner was calling to say, "Have you found a tenant, where are we at, what should we do?" but instead the owner said "Did you rent our house and not tell us? If not, there are some squatters in our house." The owner told the property manager there were 7 people living in their house!
The property owner’s shock was palpable when they discovered multiple strangers living in their home. These renters, believing they were legitimate tenants, had been masterfully deceived by the scammer. The documentation they possessed – lease, payment receipts, and keys – painted a convoluted picture for law enforcement.
The homeowners, a retired couple, had dreams of journeying across the country in their Winnebago, seeking the tranquility of retirement. Entrusting their property to the manager was a preliminary test, with the promise of managing seven more of their investment properties hanging in the balance. This debacle placed the property manager in a precarious situation. Simply dismissing it as a squatter issue and walking away wasn't an option, given the weight of responsibility she felt towards the homeowners.
Upon discovering the unexpected occupants, the property manager immediately alerted the police. However, the police were reluctant to intervene. The renters showcased a digital lease, a key that seamlessly fit every lock, and a proof of payment. Tensions escalated as the property manager and the police confronted the renters. Digging deeper, it was revealed that the renters had met the scammer on two separate occasions at the property, handing over $3,900 in exchange for the keys. This crafty scammer had rekeyed the locks and tampered with the original key inside the property's Codebox, granting him unhindered access. What's more, these unsuspecting renters had just settled into their new "home" merely two days prior.
The homeowner, previously a judge, found themselves in unfamiliar waters despite their legal acumen. Navigating this situation with utmost care, they felt the gravity of the complex legal maze that even they couldn't decipher.
In a bid to resolve matters, the owner directed the property manager to serve the renters with a trespassing notice, granting them limited days to depart. However, this action was met with an intimidating response: one renter, displaying an AR-15 gun prominently on his torso, made it clear he wouldn't budge until officially served. The police, having already been briefed on the matter, refused to intervene.
Seeking justice, they approached the civil court. But the situation was unique; these weren’t conventional tenants. The legal route pointed to the superior court, where further complications awaited. Without much guidance from the court officials, the property manager embarked on a self-educational journey, frequenting the law library, grappling with unfamiliar terminology, and piecing together the necessary paperwork for a petition.
Out of pocket expenses piled up. The property manager paid $275 for the petition, added attorney fees, and bore these expenses out of a sense of obligation to the homeowner. The sheriff's department was then approached to serve the petition, but this proved to be another hurdle. The manager sacrificed an entire weekend, pouring over case laws, seeking strategies to expedite the eviction process. The summons in the petition provided the renters a 30-day window to respond. Meanwhile, the property became a hotbed of tension with seven individuals, firearms in view, recreational drug use, and the unsettling presence of young girls. The sheriff's hands, it appeared, were tied, offering no relief or solution.
To combat this rising menace, property managers must leverage specialized tools to detect scam listings early on. Monitoring platforms like Craigslist and Facebook Marketplace for duplicate listings is essential.
The world of rental management is rife with complexities, but nothing is more distressing than falling victim to a well-orchestrated scam. The onus lies on property managers and homeowners to be ever-vigilant and leverage technology to safeguard their assets.
In a world of ever-evolving scams, only those equipped with knowledge and the right tools can stay one step ahead. Beware of housing fraud; it’s closer than you think.
