RSS FeedRenter Beware: If It’s Too Good to Be True
A few months ago, I left a great job with a local law firm to go back to work on Capitol Hill. And as you can imagine, this career move made my bank account a bit slimmer. Okay, it’s practically anorexic.
Recently, I decided that I would move in order to save some money. But having grown to love Penn Quarter like a member of my extended family, I didn’t want to leave the neighborhood. So, for the last several weeks, I have spent every day on Craigslist looking for a bargain.
On Wednesday, I thought I’d found it.
The post listed a studio apartment in the 777 7th building for $1100 per month. It specified no move in date but gave lengthy details about the apartment, the type of lease required and the building itself. It also contained pictures of an actual apartment in the building and a list of amenities that I knew to be correct. Realizing that the rental price was anywhere between $500 and $700 below market for a studio in this neighborhood, I decided to proceed with healthy caution.
I emailed the prospective landlord on Wednesday and did not hear back until Saturday. His email stated that he was a businessman, often out of town, currently in London and looking to rent the apartment quickly. But that he would be back in six days to take care of any moving arrangements. Suspicious, I thought.
The email also gave contradictory information from what was in the initial post. The post stated that the apartment was 910 sq feet (big for a studio it seemed) but the email said that it was just 600 sq feet. The post said the rent was $1100 per month, the email just $800. The email also listed the building as having a rooftop pool. And there I had it, proof positive that whoever had posted this advertisement had never been inside the building let alone lived there.
From the beginning, I suspected that the post was too good to be true. Finding a condo that far below market seemed like an impossibility, but one always wants to hope that they are the lucky finder of the diamond in the rough. But one simple email, revealed that my suspicions were correct and I felt vindicated if not a little sad that this wasn’t my dream apt. at a dream price.
Internet fraud has become an increasingly serious problem and it is often committed by people living and working in Nigeria. Recently, Nigerian scammers have been using Craigslist to dupe renters and car buyers out of thousands of dollars.
These scammers often say that they are businessman who travel frequently, or people who had to move for work without much notice. They lure you in with generous breaks on the rent and then ask you to send the money to them via PayPal or EFT bank transfer. Before you realize that you have been scammed, it’s too late. They have your money and you have no apartment.
I was lucky that I had heard of these scams before I saw the post. But too many people are being taken advantage of by professional looking Craigslist ads showcasing great deals. So, here are some rules to follow:
- Never rent an apartment that you haven’t seen. Ever. Photos can easily be copied from real estate ads or online virtual tours. And even if the owner isn’t a Nigerian scam artist, you should always visit the place that you are about to rent to make sure plumbing works, utilities work, and that there are no hidden surprises.
- Never rent from a person you have not met. I made this mistake several years ago when I rented a PQ apartment through a broker. My landlord turned out to be a real estate speculator who was in way over his head. When he got foreclosed on in early 2007, I was forced to find a new place overnight because I didn’t know that the law protected me and the bank manager threatened to have my belongings hauled away.
- Never send your deposit or rent over the Internet. By now you will have seen the apt. and met the landlord, but either way, insist on paying rent and deposit by check. Having a tangible paper trail makes everything easier if things go wrong later.
- Check up on your landlord. A simple Google search can tell you a lot about a person. But since getting burned by an unscrupulous landlord who took off with my deposit when the bank shut him down, I dig deeper. Intelius will allow you to buy a background check on anyone for $50. This check will tell you if there are any liens or other problems with the property. It will also ensure that you’re not moving in to an apartment owned by an axe murderer. You know, if you’re scared of that kind of thing.
- Get a lease. Sometimes a landlord will offer you a month to month with no lease. But while this seems like a great way to ensure freedom, your lease protects you and your landlord so you should always have one. If you end up in court later, not having a signed lease will hurt you.
In an unpredictable city, if the deal sounds too good to be true it proabably is. No one in their right mind would rent a condo for nearly half its value, but a Nigerian scam artist looking to take advantage might offer up a too good to be true deal.
Caveat Emptor: Buyer Beware. Words to rent by.
**UPDATE**I heard back from the “landlord” again today. Using the name Kurtis Benson and a yahoo address, the scammer tried to convince me that he had 200 emails regarding the apartment but that he wanted me to have it. All I had to do was wire transfer the $1100 deposit to him and he would bring the keys by next week.
No need to see the apartment, he would simply email some very official looking papers. But he made a few critical errors. Wrong zip code on the application, misspelled fiduciary (twice) and again wrote down the wrong amenities.
People be careful out there.
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Comments
Unfortunately many people are still unaware of the Nigeria scam. New similar scams are now coming from China and who knows where else. Your posting is a very good warning to both landlords and renters.
I own a condo on 777 7th. I also received a lot of scam inquiries that I ignored. For owners, never send money back. My first tenant was a lawyer moving back to DC. He was on travel in Aisa at the time and rented the place unseen. I also had inquiries from new graduates who need to get a place to live after getting a job offer in DC from out of town and cannot afford the time (final exams)and/or money to make another trip to DC.
Here is a link to check who owns the property:
https://www.taxpayerservicecenter.com/RP_Search.jsp?search_type=Assessment
This happens alot on Craigslist – probably other sites too. People (landlords, renters, sellers, and buyers) should engage reputable experts in the Real Estate field. The notion that you can get something for nothing in Real Estate is a mistake and the folks that buy into that notion are getting screwed right and left. If your agent or property manager will not or does not want to advertise on Craigslist – thank them – they are doing you and themselves a favor by minimizing your exposure to scam artists. Do yourselves a favor and get an agent and/or property manager. The most experienced ones advertise regularly in your neighborhoods so finding one shouldn’t be too difficult.
Thanks for this post- it is serious. These guys get more and more slick with their tactics. A couple of years ago, I was trying to sell my car online (autotrader), and I almost got suckered into this scam- guy responded to my ad was in London for a business trip and he sent me a check for the car but he could only send me a check which was thousands of dollars more than what my price was. So he wanted me to cash it in for him (after which I would have to send him the remainder- which was ALOT). The result would have left me with owing the bank thousands of dollars since the bank may not be able to confirm the check was counterfeit until I had already withdrawn the difference.
Take the advice of the OP and others on this- don’t risk it!
I had the same traveling in London, need to rent scheme happen to me a few weeks ago. But it was for a two bedroom in DuPont. After I insisted, the guy provided a phone number and it was for somebody in Oregon. When I googled the number, there was an advisory on it and that the same number had been provided for rent scams in NYC and Miami. Seems this person is now making the rounds in DC.
That’s a shame. I advertise my extra bedroom through Craigslist and I keep to a process that limits the scamming. I get the scam emails, but they never got past the ‘process’. On my end as a landlady I never rent out sight unseen, this is to protect me and the person seeking a place. I miss out on some opportunites but I also miss out on the headache as well.
I’m wondering if I’ve been contacted by the same people! I also own a condo in 777 7th Street – and I got a letter in the mail about a month ago from a person asking me if I was interested in selling my condo. My dad (who is a realtor and who is also on the mortgage) sent the guy an email – and we never heard back. Very interesting.
I just stumbled on a (couple) scam(s) via Craigslist yesterday too! The most enticing was for an apt at 733 15th Street, which actually is an apartment complex. However, the asking REAL price is about $3000 more for a two bedroom than the scam listed. The “owner” was asking for $1000 even to get keys to look at the apt. (it was of course going to be “fully refundable” if we didn’t like the place). They referenced Rent.com as the guarantor, but Rent.com assures all it’s patrons that it does not act in that way at all! Awful. And people in DC are always desperate to get the best deal as quickly as possible…that’s why these people are so successful!
There are two well known scammers using this same bit. One is called Vito Rinaggio and the other Paster Gross. I blogged about it at random and was shocked how many others started posting their similar stories.
http://penguinsix.com/2008/07/09/the-rinaggio-apartment-scam/
What is most annoying is not the “too good to be true” apartments, it is the ones that are just *slightly* below market rent (say, $1000 for a nice-ish 1BR in Petworth) so that you have no good clue it’s a scammer till you’ve wasted your time in multiple emails and the crazy starts floating to the surface.
It is time for Craigslist to start charging for real estate postings in DC.
Wow, this just happened with my building on the Hill. A guy wrote to our condo board inquiring because the woman, living in London, wanted him to send a deposit first before she’d overnight the key to see the place (the reason: expensive appliances and whatnot). What’s funny is that the writer made our place out to be nicer than it really is! 
I’m certain that about 50% of the rental ads on CL are a similar scam, I’d see the perfect apt, and express my interest, only to get a letter back saying that the owner was now in Europe because her husband died in a car crash, and to put 3mos rent in an escrow, and she’ll come back from Europe on a certain day so we can go to the atty’s office together….blah, blah…
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There are many condo owners in Penn Quarter that are not in good standing with their condo association. This is a dangerous situation for a renter. Check with the site manager to make sure that the landlord is current on their condo dues to avoid problems. And put a clause in your lease agreement about the condo owner/investor paying the condo dues as a condition of your lease.