Since writing a post on Scams Operating on craigslist.com last year, I've received dozens of emails and phone calls thanking me for the post and asking many questions.
The most interesting call I received was from a homeowner in Florida that called after being approached by a man expressing interest in a home she had for rent. She knew something smelled fishy and felt it to be a scam, but couldn't quite figure out what was up since it didn't involve cashiers checks or Western Union as the standard scam does.
After speaking with her at length and helping her reach a conclusion, it was apparent to me it was worthy of a post. These challenging times are making many property owners anxious to find renters to cover those mortgages, and often many are inclined to bend common sense rules and take big chances when it comes to renting their home out.
The homeowner described the following: She was offered cash for the rental by a fellow claiming to be rather wealthy, he said he was getting a divorce and wanted the rental to be a secret. He wanted a lease, but would offer no identification whatsoever (refused). He wanted to pay several months in cash, which he had a lot of, yet he drove an old beat-up car. He said he owned many luxury cars (even two Hummers), but they were all currently loaned out (but of course, he explained, she would see them at the home periodically in the future).
The owner was actually contemplating renting the home to the man due to her need for cash, she had even taken a deposit. After bouncing the info around in my thick skull, I felt it sounded like someone acting as a "front-man" to rent the home for illegal purposes. It could be a safe house for illegal aliens, or drugs, and it could be to run a drug dealing or manufacturing operation. One thing was for sure, he was up to no good.
After discussing my thoughts with her, and pointing out that anyone would be foolish to rent to a person that refuses to offer proof of identity (to say the least), she decided to return the cash deposit and not enter into the lease with him. As I told her, I know the money would be nice to have, but imagine what it will cost you if they set-up a meth lab in there. Many vacant homes are even being used without the owners knowledge for illegal purposes (People seem to believe walking away from a home ends their responsibility).
As the market becomes flooded with rental properties, many owners will feel inclined to rent to anyone with cash in hand. If you do so, you may be making a mistake so enormous that the consequences' will make your current financial issues seem trivial.
I have seen first hand how Craigslist is full of rental scams. It seems like the word is getting out though, thanks for the posting.
great post, Michael - I hope everyone with rental property gets to read it. And, we need to remind the people who own vacation/2nd homes, to have someone go by their place once a week to check for squatters and the such. Have a great day :)
Wow! I appreciate this information. Thank You!
I always tell people to lower the rent to the point where you get plenty of people wanting it. $100 less is worth the ability to pick from a choice of rental candidates.
Hope all is well with you!
I agree. Being a bit more flexible on the move-in cost helps also. Often, by the time one pony's-up first, last, and a deposit, they're looking at close to 10k for a nice home. That can be a high hurdle for many these days. .
As you can imagine, a potential renter with a beater car, pocket full of cash, and no I.D. should always get a big fat NO THANKS!
Michael,
This is a real problem here in Tucson. Good post!
Mike in Tucson