How to Avoid Scammers - Tenant File Blog
Most warnings and media stories about scams on rental listing sites such as Craigslist focus on helping renters avoid scams, but landlords and property managers are often targeted as well. Here are some of the most common ways in which property managers and landlords find themselves getting scammed — and how they can prevent it. Learning how to avoid scammers is critical to your success.
Three Types of Scams:
Smoke-and-Mirrors Scams
Scammers steal pictures and property listing descriptions from authentic rental listings, and post them elsewhere online to lure renters. The alternative postings include suspiciously low pricing and contain fake email addresses or 800-numbers, which the scammer uses to draw renters in. For the landlord, their legitimate listing is passed over by tenants clicking on the lower price option, and can create suspicions that the legitimate listing is a scam as well.<
These scams involve real tenants actually signing a lease agreement and moving in – only to invent an excuse for a lawsuit. This could be failure to provide lead paint documentation or really anything that sounds scary and serious. Even if the tenants eventually lose the lawsuit, they can still often live for free while the landlord deals with the suit. Court may put a stay on any eviction proceedings until the lawsuit is decided.
False Check Refunds
Impostors often will pose as renters who agree to pay a security deposit and rent without viewing the property. Then the impostors send fraudulent cashier’s checks in excess of the stated amounts and request that landlords return the overages. After sending a “partial refund,” landlords learn the up-front payments were counterfeit.
How to avoid scammers – here are some ways in which landlords and property managers can guard against these scams:
Publish limited information on the internet regarding yourself and your properties. Post the intersection instead of the full street address. Serious prospects will call, giving you the opportunity to conduct a phone screening prior to divulging sensitive information.
Use An Alternate Phone Number
Never use your cell or home phone in your rental ads. Consider free options such as Google Voice to receive calls on your cell phone without giving away your true phone number.
Conduct A Background Check via Telephone
Always conduct a preliminary background check via telephone prior to showing the property. Scammers will be uncomfortable answering many questions. When doing a more complete screening after showing the property to an interested tenant, be sure to verify their employment, income, credit history, criminal background, and court history. If they have ever sued a landlord, keep searching.
Watermarking your pictures is one way to prevent picture theft. There are a number of watermark software programs and some free online versions. Do some research to choose the appropriate one for you.
Now that you know some ways to avoid getting scammed, also check out our post on protecting your computer from a cyber attack: http://tfblog.tenantfile.com/2015/10/a-day-in-the-life-of-a-property-manager-post-cyber-attack/
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