Frustration is the word of the day for the buyers, the sellers and the agents when it comes to Craigslist rental scams. The scam is quite simple and relatively believable.
A Craigslist scammer searches for listings in active, popular areas with good marketing on MLS sites like Trulia, RealTracs, Zillow or REALTOR.com. They snag the photos and write an ad something like this, “4 BR/2 BA home for rent for $800/month. Nice home in quiet area. I am a missionary with my family in Africa and we need someone who will take good care of our home and rent it. Since are out of the country, we will need to work with you via email….” you get the picture.
The price is just below rental market value and almost believable. The renters do the natural thing and email the scammer thinking, “hey you never know.” The scammer knows that most people are in the rental market for a short time and not often; so, it’s easy to hit a new crew of innocent, open-minded renters.
The renter drives by the home and sees a real estate sign in the yard and thinks the home is actually available and everything makes sense. Many renters call the agent to get inside, and the scam ends here when the agent tells them that it is actually not for rent. However, some renters go through the steps and potentially compromise their privacy.
Here’s a video from the Federal Trade Commission (FTC) that explains how to report this scams, whether you’ve been taken or not.
The FTC has more information on their website, additionally.
The renter loses because many compromise their privacy and some turn over money. One father reported to me that his daughter went through a long credit check process that made the entire “scam” believable. He said the site generated the reports, asked all the legit questions and appeared on the up-and-up. When I kept explaining to him that it wasn’t for rent, even he had a hard time understand that. Remember, creating fake websites that capture information is super easy.
The home seller loses because many get knocks on their doors at all hours of the day and night asking to see the home. Some times, no one has been tipped off that there is a scam running, so the seller thinks they’re doing the agent a favor by showing the home, only to find out that the visitor thinks it’s for rent. It’s a great disappointment and inconvenience.
The real estate agent loses with time lost. One or two of my listings get scraped, at least, once every month. I will log well over 100 calls for one scam, completely killing my productivity for a few hours. If you’re an agent reading this, remember, it’s not the callers fault! Be kind. Since very few buyers actually call agents any more, opting for internet contact and email, sign calls are rare. When I get the call or message that says, “I’m interesting in your house on Elm Street,” my first question is “Are you looking to buy or rent?” The vast majority of the time they will say “rent.” My next question is, “Did you see it on Craigslist?” I then smile and explain that it is a Craigslist scam that has nothing to do with my seller or me, thank them for reporting it and apologize for the jerk who pulls this crap.
3/1/2010 Note: Special thanks to @WSMV and @WSMVCaraKumari for reading my blog and picking up this story within one day. We need to get the word out more, and you certainly help that big-time tonight. Here’s a link to Cara’s story on the Nashville NBC news affiliate.
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