Beware of Bogus Online Home Rentals
BBB Warns Consumers of Phony Property Postings on Craigslist
Austin, TX – September 17, 2009 - 36 million, or one-third of U.S. households currently rent according to the National Low Income Housing Coalition. Many prospective renters find homes through online classifieds, but some consumers are being set up by scammers. Better Business Bureau warns to be on the lookout for phony ads on Craigslist and other Internet services aimed at stealing money from unsuspecting renters.
“Scammers are unfortunately using online classifieds like Craigslist to trick consumers into paying large sums of money upfront for places that aren’t even available,” said Carrie A. Hurt, President and CEO of BBB serving Central, Coastal and Southwest Texas. “Consumers need to be just as picky finding a place to live through the Internet as they would be visiting the property in person.”
Consumers typically fall victim to these scams after responding to an online classified for a rental property. Victims say they were asked by the supposed landlord to wire as much as $1,400 as a deposit in order to receive the keys to the rental home. When the victims asked if they could check out the property first, the landlords claimed they were out of the country and unable to show the house.
As a result of this scam, many shocked homeowners have received knocks at their doors by people who were planning to move into their new rental home. Often the real homeowners have their house up for sale – not rent - and had pictures posted online that the scammers could steal for their phony listings.
BBB advises consumers of the following red flags to look out for:
- The deal sounds too good to be true. Scammers will often list a rental for a very low price to lure in victims. Find out how comparable listings are priced, and if the rental comes in suspiciously low, walk away.
- The landlord is located elsewhere and prefers to communicate via e-mail. Scammers might say they have just been relocated out of the country for a job or missionary work. If the landlord is truly overseas, there is no way to get a copy of a lease or keys so don’t believe it.
- The landlord requires a substantial deposit before handing over the keys or even showing the property. Don’t pay any money before inspecting the home, inside and out. Additionally, most apartment rentals require a small application fee before the first deposit is due.
- The landlord asks the renter to wire money through wire transfer services such as Western Union or Money Gram. Money sent via wire transfer service is extremely difficult to retrieve. Once the scammers have picked it up, there is little recourse, if any, for getting any money back.
For more advice you can trust from BBB on how to avoid common scams, visit www.bbb.org.
About BBB:
BBB's mission is to be the leader in advancing marketplace trust. BBB accomplishes this mission by creating a community of trustworthy businesses, setting standards for marketplace trust, encouraging and supporting best practices, celebrating marketplace role models and denouncing substandard marketplace behavior. Businesses that earn BBB Accreditation contractually agree and adhere to the organization's high standards of ethical business behavior. BBB provides objective advice, free business BBB Reliability Reports and charity BBB Wise Giving Reports, as well as educational information on topics affecting marketplace trust. To further promote trust, BBB also offers complaint and dispute resolution support for consumers and businesses. The first BBB was founded in 1912. Today, 128 BBBs serve communities across the U.S. and Canada, evaluating and monitoring more than 3 million local and national businesses and charities. Please visit bbb.org for more information about the BBB System.
This Better Business Bureau is currently supported by approximately 9,500 Accredited Business locations and serves more than 5.5 million consumers in its 62-county service area in Texas. These counties include: Aransas, Atascosa, Bandera, Bastrop, Bee, Bell, Bexar, Blanco, Bosque, Burnet, Caldwell, Calhoun, Comal, Comanche, Coryell, De Witt, Dimmit, Duval, Edwards, Falls, Fayette, Freestone, Frio, Gillespie, Goliad, Gonzales, Guadalupe, Hamilton, Hays, Hill, Jackson, Jim Wells, Karnes, Kendall, Kerr, Kinney, Kleberg, Lampasas, La Salle, Lavaca, Limestone, Live Oak, Llano, Maverick, McLennan, McMullen, Medina, Mills, Navarro, Nueces, Real, Refugio, San Patricio, San Saba, Travis, Uvalde, Val Verde, Victoria, Webb, Williamson, Wilson and Zavala.