Don’t Get Caught in South Florida Real Estate Rental Scams
Categories: As Heard on the Street, Community Information, Real Estate News, Rentals
hiDon’t Get Caught in South Florida Real Estate Scams
Teacher Loses $3,000 In House Rental Scam (click on title to left to review article)
Stories like the above are not just happening in Miami. They are happening in many cities and counties throughout the country. Don’t let it happen to you. Here are a few tips…I hope they are helpful.
How do rental scams work?
With so many foreclosures, short sales and unoccupied houses currently on the market in South Florida, the scam artists have started working hard. They will find an unoccupied property, call the bank or listing agent posing as a fellow Realtor and get the lockbox code to show the property. They will then list the property for rent on Craigs list and many other free online listing services for significantly less than what the property is actually listed at (if it is for sale, they will list it as a rental at a lower price than what is available in the area).
Potential renters will call the “s0-called Realtor or landlord” who will have you meet them at the property, talk it up, ask you for first, last and security deposit and write up a fake contract. The locks are changed, they remove the for-sale/for-rent sign and you move in…not realizing that you are living there illegally. Until one day, the true realtor or bank stops by, a neighbor calls them or it is sold. Now, you are out a home to live in and three months worth of rent.
If you are looking to rent, here are a few things you can do to help prevent yourself from getting stuck in one of these scams:
Nearly 90% of people looking to rent or buy typically start online. This is perfectly normal. But when you find a place you are interested in seeing, there are a few things you can do to be sure that you are dealing with a legitimate realtor:
1. Is the listing agent a license professional? Visit the Florida DBPR (Department of Business and Professional Regulation) website. To look up a licensed professional by name, license number, city/county and/or license type, click here.
2. Is the agent with a legitimate company? Because most Realtors are on the go, they will provide their mobile number. Do they provide an office number? If so, call the office number and make sure that the agent does work there. On the listing, also see that the agent provides their company. If you’ve not heard of the company, investigate it.
3. Meet your agent: When you schedule the appointment with the listed agent, schedule an appointment with them first and ask to meet them at their office prior to going to see the property. You can let them know you want to discuss what you are looking for and then go out and visit the one property and a few others that they might have available.
4. Is it really the owner/landlord? If the property is listed by the “owner/landlord”, you can visit your local county appraiser’s office website and look up the owner’s name and/or address of the property to ensure that they are indeed the owner. For the Broward County Appraiser’s website, click here.
5. The bottom line: If you know you will be looking for a rental property, find a licensed realtor that you trust. Look them up to be sure they are licensed. Meet them in person first at their office. Find out how they work, what areas/neighborhoods they specialize in. Let them know what you are looking for. Then schedule time to go out and look at properties. Just because you are working with an agent, does not mean it will cost you any more. They get paid out of your first month’s rent. Because you are dealing with a professional…you might just end up saving time and a lot of money in the long run.
If you are listing your home and plan to have it unoccupied while you are trying to sell it or rent it, here are some things you can do to help prevent a scam artist from renting your place while you are away:
1. Know your neighbors! Make sure your neighbors are on alert that you are away and that they know to contact you should they notice anything suspicious. Provide your neighbors with your listing agent’s business card, so they can also contact your realtor should they notice anything out of the ordinary. Let your good neighbors know when you have secured a rent/buyer and when they should expect to see them moving in.
2. Lockboxes: Ask your Realtor what type of lockbox they will be putting on your door. Some boxes are old fashioned and all they require for entry is a few numbers (like that of an old school/gym locker or padlock). There are now electronic boxes called Supras. In order for someone to have a key to these boxes and get in, they have to have a license number and enter in a password in order to get in. The listing agent can run electronic readouts of those who visit the property and run them against the scheduled appointments.
3. Your Realtor can help: Ask your realtor to drive by and go into the property infrequently for you.
4. Google your property address often: If your Realtor has allowed others to advertise the property (this permission is originally given by you and is very common as it gives your property more visibility in the marketplace), you may see your property come up as being listed by other agents on the internet. Go to your state’s DBPR (Department of Business and Professional Regulation) website (for Florida DBPR click here) and look up any agents who have your property listed to assure they are licensed. Also, check to be sure that any listings of your property are offered at the price you have it listed for. If your property is for sale and not offered as a rental, be sure the listing is not offered as a rental.
5. The bottom line: Interview at least two or three realtors prior to deciding who you would like to select as your listing agent if you don’t already have a rapport/relationship with one. Realtors will appreciate your diligence and it will help you to find someone you trust. Be sure to discuss some of the above questions and find out what their recommendations are. A good realtor will provide and discuss the above options with you.
