Do real landlords hold any responsibility for rental scams?
By Greg Collier
It seems like more and more families are being put out on the street because of rental scams. This is when scammers pose as landlords and collect money from victims in the guise of security deposits or rent. Scammers will copy the listings from legitimate realtor sites and post them on places like Craigslist and Facebook Marketplace as if they own the property. In too many cases recently, scammers will even obtain access to the property to make their claim of ownership more authentic. The rental scam has been around as long as online marketplaces have existed. In the early days of the scam, fake landlords would ask for payment in money transfers. Now, the scammers have even easier access to their victims’ money thanks to personal payment apps like Zelle and Venmo.
To make matters worse, many rental properties can be viewed using various rental apps that allow renters to have unguided access to the rental home. Not only has this allowed scammers to circumvent these apps to fool their victims, it’s also allowed the victims to move into homes they thought they legitimately rented. Once the actual landlords find out people have moved in to one of their properties without their say so, the scam victims are usually evicted within days. Many of the victims do not have any other housing options and become homeless. However, do landlords and property management companies share some blame for not securing their properties better?
A family from Wisconsin recently fell victim to a rental scam and are now facing an uncertain future. They found a listing online for a townhouse that was perfect for them. They only spoke to the supposed property agent by phone and text. The family was given an access code to a lockbox that contained keys to the property. This allowed them to tour the townhouse alone. The family forwarded the payment to the person they were dealing with. While the report doesn’t state how the payment was sent, it’s safe to assume a personal payment app was used.
The day after the family moved in, another family showed up also looking to move in. That’s when the actual property management company stepped in and gave the family one week to move out.
When reached for comment by local media, the management company said they use a third-party platform to perform the unassisted tours. The third party is said to verify potential renters by doing a driver’s license and credit card check. However, it seems once an ID check is passed, the code to access the lockbox can be accessed over and over again. That makes the lockboxes vulnerable to scammers, as they can easily pass an ID check with stolen information. There’s already a housing crisis in this country. It doesn’t need to be worsened by scammers and shoddy security.
If you’re looking to rent a new home, we can’t stress enough to do as much research on the property as possible before committing any money. Even as something as simple as doing a web search on the property’s address can turn up a trove of information that may help you avoid a rental scam. Also, never use apps like Venmo or Cash App to make any kind of deposit or rent payment. These apps are too easily manipulated by scammers to get your money and then disappear. Lastly, read any and all paperwork carefully to make sure the documentation isn’t fake.
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