If you want to make money off of rental properties without actually owning one, aren’t squimish about breaking laws, and aren’t burdened with a code of ethics, there’s a scam out of San Diego you might be interested in:
It begins with a team of people using untraceable cell phones.
The group searched the Multiple Listing Service used by realtors, selecting vacant, high-end homes for sale.They then cut and pasted pictures of the homes into a rental ad on the Craigslist Web site along with their cell phone numbers.
The group would spend one day setting up deals and the next days collecting money.
A reporter from Channel 10, Kevin LaChapelle, reported his conversation with one of the scammers:
In a phone conversation with the alleged ringleader, LaChapelle said, "Hi, this is Kevin. I was able to get the $1,000 deposit. Is that fine?"
"Yeah, that’s fine," said the man."He said his dad left the door unlocked for me and to go inside, take a look around the home and see if I liked it, and to leave the envelope with $1,000 cash on the countertop in the kitchen, which we did," said LaChapelle.
Following the instructions, LaChapelle left the envelope — albeit an empty one — at the home.For three hours, the I-Team waited, hoping the group was tempted by an easy $1,000.
Apparently, the group is interested in the money, and the alleged ringleader shows up at the home.
Apparently this isn’t the only case out there:
According to authorities, the scam has recently popped up because the type of locking system on most homes for sale needs an access card.
However, the glut of available homes on the market has reduced the supply for the access cards, so many agents have been forced to use older systems.
Potential renters need to be sure that they are dealing with the actual owners or a licensed agent, or risk kissing their money goodbye.
[Many thanks to MD for bringing this story to our attention!]
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Who is dumb enough to pay a cash deposit, much less without getting a receipt, and all without filling out a rental application?
This is scary to me though, since my house is for sale. I worry about strangers being able to get in, and I have no idea what sorts of controls the realtors have for the “lock box” with the extra key.
I think anyone who gets scammed in this takes stupidity to a whole new level.
Walk into an open house without anyone there? Never see the landlord? Leave cash in an envelope on the counter?
Really?
TC-
This is not the first I’ve read of crimes in vacant houses. Theft is the most common I think, but there are others.
Higher vacancy rates aren’t good for local crime rates.
Diana-
I suspect the crooks use greed as an incentive. If they are offering to rent a fabulous place for an amazing price, sometimes people don’t ask too many questions.
OK, pop quiz: when renting a house, how can you be *absolutely* sure that the person you are talking to owns the house? If their name is on the title, which you can find on zillow and prop shark. But maybe it isn’t, maybe it’s the name of a trust. So how can you be *absolutely* sure?
Trick question: Sometimes, you can’t. Don’t be too smug about this as a problem – we’re going to see a lot of it in the coming years.
Netdance-
You are right- some of these guys are pretty sophisticated. I think the whole “leave the cash in an envelope on the counter” is probably a good clue though.
these crooks must really not be that smart – why go for a grand in an envelope when you can steal somebody’s identity. Just have the person fill out the usual credit app and leave it on the counter