Scams with regard to the rental are as old as the relationship between landlord and tenant. Particularly, the most recurring scam was when the landlords retained the security deposits of the tenant. This is often done with much liberty. Many laws have emerged to curb these scandals.
The world is much smaller now, and the
technology has become widespread. The relationship between the landlord
and the tenant has become anonymous. The chance of rampant fraud has
not been this much greater. As one observes, the crises with regard to
housing, resulting in number of empty property has given the chance that
criminals cannot just ignore.
The existing rental scams
The most rampant rental scam that we
have seen in the last couple of years is people with no right to leasing
of a property leasing it to a probable tenant and getting away with the
security deposit, rent for the first month, and during times even the
prepaid rent.
Another existing scam is the charging of
possible tenant fees for background verification and getting away with
that money. The particular fee for background check is about $50, an
amount with which the thief could get away with.
Sophisticated frauds that are in the scenario
The simplest frauds involve copying of
the legal apartment ads from the internet and posting it again with
their contact information. When a possible tenant approaches the poster
of the advertisement, he gives excuses for not retaining access to the
property and demands that the tenant rent it without the site being
seen. Or, he demands that the deposit be paid. Once the scammer
retains the money, he goes missing.
There are some more complicated scams in
which the criminal has direct access to the apartment. The huge number
of foreclosures has resulted in vacant buildings being used for
fraudulent purposes. The criminal goes for a break into the building
and he replaces the locks. He is actually able to show the apartment to
the possible renters. There have been cases where the tenant moved in,
and then be told that the property is not owned by the scammer.
Preventing Fraud:
Prevention of the most sophisticated scams could be difficult, but there are some tips to assist in minimizing the danger. Be Cautious of Foreclosure Scam
Never go for cash dealing:
The weakest point in most of the
fraudulent schemes is the reception of untraceable payment. Those who
resort to sophisticated scams know that police can easily track down the
common kinds of payment putting the scammer in risk of arrest. Most of
the scammers insist that the payment be made to a difficult to trace
form. It is to be noted that the tenant should never pay the cash to
the landlord for anything. This is particularly applicable for a
security deposit and first month rent. The tenant should also avoid
wiring the money.
Legal landlords will generally accept
the regular checks or those from the cashier. Those are easier for the
police to trace if a culprit disappears with the money. Even if the
landlord is not a scammer, those landlords who demand only cash are very
problematic.
Any attempt made by the landlord to be
anonymous should be seen as a discouraging factor. Even in the most
conducive scenario, the person may be difficult to reach if there are
any repairs to be made.
What should be done if one has been scammed?
Prevention is always better than cure.
It is the choicest option to prevent scams than endeavoring to come out
of a fraudulent scheme. In majority of the cases, one will never see
his money again and the culprit may disappear.
- If you have become the victim of a scam, a police report has to be given and full details furnished.
- One has to notify the Alderman for the district, and it is to be noted that many aldermen are as much active in their wards as possible. They will make the police take action.
- One has to contact the Illinois Attorney General, and it is to be noted that the office holds responsibility for the protection of consumer.
- One has to contact an attorney or the rights agency for the tenant. One is often aware of the existing scams and can try to avoid becoming a victim of scam.
Dc Fawcett, a real estate icon and the founder of Virtual Real Estate Investing Club, has suggestions in his blogs to make people wary of the scammers. One could skim through the blogs by Dc Fawcett so that he or she gets a fine idea regarding the danger of scams.