Picture a frantic call from a potential renter who's just realized they've been scammed using your property's listing.
Scammers are increasingly targeting properties listed for sale, marketing them as rentals on platforms like Craigslist and Zillow. This alarming trend not only undermines trust in real estate transactions but also creates significant issues for property owners and REALTORS®. As REALTORS®, it's crucial to be vigilant and take proactive measures to protect your listings. Here’s how you can stay ahead of these scams and what to do if it happens to you.
Understanding the Scam
A typical scam involves a fraudster picking up a "For Sale" property and posting it as a rental. They solicit application fees and deposits from unsuspecting renters, claiming to be the owner. One such incident involved a scammer posting a rental listing on Craigslist and Zillow, soliciting an application fee. The scam is usually identified when a potential renter contacts the legitimate listing agent or the homeowner.
The Impact on Agents and Owners
While tenants can lose money, the repercussions for property owners and agents can be equally as severe. A defrauded tenant might move into the property, and due to California’s tenant protection laws, removing them can be a lengthy and complex process for both the tenant and the owner. This situation creates legal and financial challenges for the property owner, the tenant, and the REALTOR® managing the listing.
Steps to Prevent Scams
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Regular Monitoring:
- Frequently check platforms like Craigslist, Zillow, and others for unauthorized rental listings of your properties.
- Set up Google Alerts for your property addresses to receive notifications if they are mentioned online. Here are instructions for doing so.
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Clear Communication:
- Inform your clients about the potential for scams and advise them to contact you if they receive any suspicious inquiries.
- Ensure your contact information is prominently displayed on your listings and signage.
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Educate Your Clients:
- Inform sellers about the scam and encourage them to report any suspicious activity they encounter.
- Provide them with a list of red flags to look for, such as requests for payment before seeing the property or communications from email addresses that do not match the legitimate owner’s contact information.
What to Do If Your Property Is Scammed
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Report Immediately:
- Contact the platform where the fraudulent listing is posted (e.g., Craigslist, Zillow) and request immediate removal.
- Report the scam to local police, the County Sheriff, and the District Attorney’s office.
- Notify the Federal Trade Commission (FTC) and the Attorney General’s office.
- Here is a list of contacts provided by the San Diego DA
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Inform All Parties:
- Notify your seller and any legitimate tenants about the scam.
- Advise them to be vigilant and report any suspicious activity.
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Document Everything:
- Keep detailed records of the fraudulent listing, including screenshots, communication with the scammer, and any reports filed with authorities.
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Legal Considerations:
- Consult with legal professionals to understand the implications of a defrauded tenant occupying the property.
- Prepare for possible eviction proceedings, which may require legal assistance due to California’s tenant protection laws.
- Secure the Property
- Change the locks to prevent unauthorized access.
- Add security cameras to notify you of unauthorized access.
- Consider removing lockbox access.
- Consider private security.
By following these steps, you can significantly reduce the risk of your listings being targeted by scammers. Stay vigilant and proactive to protect your clients and your reputation in the real estate market.
How to Set Up a Property Alert Using Google Alerts
Setting up Google Alerts is an effective way to monitor your property addresses and stay informed about any unauthorized listings or mentions online. Here’s a step-by-step guide to create a Google Alert for a property address:
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Go to Google Alerts:
- Open your web browser and go to Google Alerts.
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Enter the Property Address:
- In the search box at the top of the page, enter the property address you want to monitor. Use quotation marks around the address for more precise results (e.g., "123 Main Street, San Diego, CA").
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Customize Your Alert:
- Click on “Show options” to customize your alert settings:
- Frequency: Choose how often you want to receive alerts (e.g., as-it-happens, once a day, once a week).
- Sources: Select the sources you want to include (e.g., news, blogs, web, video).
- Language: Set the language for your alerts.
- Region: Specify the region to refine your results.
- How many: Choose between "Only the best results" or "All results" based on your preference.
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Set Up Notifications:
- Enter your email address to receive the alerts. If you are signed in to your Google account, it will automatically use your account email.
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Create Alert:
- Click on “Create Alert” to finalize the setup. You will start receiving notifications according to your specified preferences.
By following these steps, you can ensure that you are promptly informed about any online activity related to your property listings, allowing you to take swift action if unauthorized listings or mentions are detected.