Real Estate Problems Fuel Landlord Impersonation and Rental Scams
Finding a well-priced house or apartment for rent is challenging enough without having to worry about being scammed by someone posing as a landlord. For those who have lost substantial finances from having to foreclose their home, the last thing they need is to handover a deposit only to loose out on the money and housing opportunity.
A recent Associated Press article discusses a noted rise in incidents of “landlord impersonation” contributing to rental scams. Officials speculate that these occurrences may be linked to the increased quantity of vacant and foreclosed homes – more empty spaces to advertise for rent and more families and individuals in need of a place to live. While solutions to real estate market problems seem to still be wavering, this type of scam may continue to increase unless stricter penalties are enacted in accordance with heightened awareness amongst law enforcement and searching tenants.
The article focuses mainly on landlord impersonation occurring in San Francisco; however, this type of scam happens throughout the United States and can happen to anyone. California Assemblywoman, Fiona Ma, is sponsoring a bill that would increase the penalty of collecting money by posing as a landlord. Under the bill, such an offense would become a felony of grand theft rather than a misdemeanor. The bill would make it so that anyone convicted would face serving a maximum of one year in state prison or paying a $10,000 fine.
Anyone looking to lease property should do their research and be sure that any rental agreement is legitimate before signing or paying a deposit. It is understandable to want to rush this process so that you and your family have a place to live, but it is not worth the risk of being the victim of a rental scam. Real estate matters and legalities are typically far from simple to someone who has not devoted years to becoming an expert in the field. Plan on taking your time in looking for other prospective places to live before you give a stranger a large amount of cash for a deposit.
