Real Estate Scams on the Rise Again in Berks – Sellers Beware! Rental property scams are prevalent on Craigslist, but it appears as though scammers are casting wider nets these days. The competitive market has created optimal conditions for housing related scams. Low inventory continues to be a challenge for both buyers and renters. Desperate renters are eager to jump on available units; often overlooking red flags. These scammers are
using your listing photos and fraudulently claiming the property is available for a low monthly rent.
In April, an R-BAR affiliate company contacted our office to inform us of a scam targeting a Muhlenberg Twp. home seller. After just days on the market, the listed property was moved to pending, and settlement scheduled for June. All seemed great until “prospective tenants” began showing up at the home. Much to his surprise, the owner was informed that his property was listed for rent on Apartments.com.
Respondents to the phony rental property listing were contacted via e-mail, given a lengthy but bogus backstory explaining why the property was being rented instead of sold and instructed to disregard the “for sale” sign still in the front yard. Respondents were sent a tenant screening questionnaire via e-mail. The questionnaire inquired about marital status, occupation, date of birth, address, move-in date, reason for leaving current residence, etc. The questionnaire even requested a photo of the occupant… Creepy, right?
The questionnaires were then “screened”, and prospective tenants got an approval notification e-mail; informing them of the $2000 move-in costs- payable via Zelle or bank transfer. They were told the keys to the property would be shipped directly to them. The seller received several visits from these “tenants” who were obviously upset after learning the property was not for rent. The seller was shocked to see his own name appear as the signature
of e-mails received by the tenants. Some of the respondents even recalled recent phone calls with him about their lease agreement.
The sellers alerted their REALTORS® about this situation and reported it to the police. Unfortunately, the Muhlenberg Twp. police were already aware of four
other rental scams within the township at that time. Unsure about what information this scammer had about him and his family, the seller felt safe living in his home until settlement.
As a REALTOR® how would you handle this situation if it happened to your client? Here’s some helpful tips!
REALTORS®, alert your broker of fraudulent property listings.
Try to locate the original property listing advertisement online and screenshot it before it’s removed by the website hosting platform. Be sure to record as much detail as possible about the fraudulent listing. This information is valuable to investigative authorities.
Alert local law enforcement. Provide local law enforcement with a copy of the screenshot and any communications acquired from the respondents or listing contact person (scammer).
If the fraudulent listing is still active and appearing on websites or in search results, contact the website(s) to have the listing removed. Ask the website to provide you with any information about the listing creator.
Contact the Pennsylvania Attorney General’s Bureau of Consumer Protection 800-441-2555 (Toll-Free Helpline) or file a complaint on their website. Be sure to attach any supporting documents, communications, contact information and screenshots.
File an online complaint with the U.S. Federal Internet Fraud Complaint Center.
Advise your clients to be extra vigilant following the incident. The scammer was likely targeting unsuspecting renters for security deposit funds and information used to commit identity
fraud, but property owners should report any suspicious activity in their neighborhoods to the local authorities.
~ Brittney Baker Shurr