Sunday, April 11, 2010

Beware of Phoney Landlords

You're surfing Craigslist or the local paper looking for a rental. You come across a great place - nice location, spacious, and cheap rent.

Remember the old adage: "If it sounds too good, it probably is".

One result of the rise in foreclosures is that there has been an increase in the number of vacant homes. Owned by banks, many are ignored for months while the bank grinds through the processing of these properties. Meanwhile, scam artists have swooped in to take advantage of the vacancies.

Posing as the owner, they advertise the homes for rent, sign leases with prospective tenants, take the deposit, and disappear before the real owner shows up.

"With a lot of foreclosures, the property sits empty for a long period of time," said Assemblywoman Fiona Ma, D-San Francisco. "What we're finding is that scam artists will come in, change the locks and advertise on Craigslist at a very enticing price. They tell people, if you want to get this deal you need to come back soon with cash for the deposit. People give them the money, sign a lease, get keys and a couple of days later the legitimate owner (an agent for the bank) comes and says, 'What are you doing here?' Then they're out whatever cash they've laid out."

Currently, impersonating a landlord is a misdemeanor in California. But Ma is co-sponsoring a bill that would make this felony grand theft in her state. "We want to change it to a felony for a first offense, punishable by a maximum of one year in state prison or a $10,000 fine," she said. "Buyer beware: If it seems too good to be true, maybe it's not true. If you've been scammed, you should report it to the police."

The number of landlord impersonations have risen significantly over the past year, but true numbers are hard to estimate since many victims do not report the crime. Even when reported, most victims don't get restitution. They've handed over cash to "rent" the place, so tracing the "landlord" becomes difficult.

If you are a victim of this crime, report it. But the best way to not get duped is to be careful before you turn over your money. If possible, check county records to see who is the legal owner of the property. Many counties have this information on line.

And remember, if it sounds too good, it probably is.

1 comment:

Dolphin Girl said...

There's several folks here at work, who were seeking apartments in the city, and have come across them; one, just last week and he posted details of his run-in on our internal message board. They were smart enough to know it was a scam, but it's really on the rise - especially in SF, where good apartments are scarce, and with the economy - there are a LOT of sharks out there waiting for innocents to take the bait....