Online rental scams require research

IOWA CITY - A scam involving Corridor houses fraudulently listed as cheap rentals requires would-be renters to remember, if it seems too good to be true, it probably is.

But sophisticated twists on an old scam make it even tougher to spot the shysters.

'It's really creepy,” said Becky Bentley of Coralville.

Bentley learned her former house in Iowa City was fraudulently listed for rent on Craigslist when a woman came to the house saying she was ready to sign a lease. When Bentley's husband, Bob, told the woman the house wasn't for rent, the woman was crushed - and surprised.

After all, she had talked by phone with someone who purported to be the homeowner. That person said he had to move to California for health reasons and needed a renter quick.

He even sent the would-be renter a photo of him and his family, Bentley said.

Bentley found the Craigslist ad, which included photos and descriptions of her house swiped directly from the Bentleys' online sale listing. But the Craigslist ad said the house, a four-bedroom with 2,500 square feet built in 1995, was for rent for $1,500 a month - a bargain if it were true.

The goal of the scammers is to convince a renter to send a check or share financial information, such as bank account numbers. By the time the renter figures it out, the scammer has disappeared and the money is gone.

'Basically the methods change, but people steal someone else's money or financial information,” said Greg Buelow, Cedar Rapids public safety spokesman.

Police investigate these crimes, but as the perpetrator is often out of state or in another country, it can be hard to make arrests.

Terri Larson, an Iowa City-area Realtor with Lepic-Kroeger, witnessed an elaborate scam last year. She was showing a young couple a house for sale for more than $300,000, when the woman blurted out, 'I can't believe this house is for rent!”

When Larson told them it wasn't for rent, the man didn't believe her. He'd spotted the house for rent on Craigslist for $975 a month and communicated with the alleged homeowner, who told him not to tell Larson about the arrangement because she would be angry over losing her commission on the sale.

'I finally had to have the owner of the house call him,” Larson said.

DO YOUR RESEARCH

Scammers often come up with plausible reasons they are renting below market value, such as the speed they need a renter, or the desire to have someone who will 'really take care of the property,” Larson said. The ploy seems to prey on people desperate for a good deal.

Sara Gates, the trends editor for the Huffington Post, wrote a column in March about how she fell for a Craigslist rental scam in New York City.

'I wanted so badly to trust humanity - to believe that this was just kismet, and could only happen in New York.” Gates wrote. 'I was caught up in the con, and the fantasy that I could find an awesome, affordable apartment the day after I lost one.”

When she reported the scam to the New York Police Department, Gates learned the couple pulling the con had already tricked several twenty-something women out of more than $20,000. She was their ninth victim to come forward.

Dell Richard, a Coralville lawyer who specializes in real estate, said would-be renters need to do their research before they send cash to a stranger.

First, check to see whether the property has a rental permit. Some online listings will omit addresses at first, but an email to the sender should get you that information.

The city of Cedar Rapids has on online listing of registered rental properties and landlords (http://smgs.us/3jtf). Iowa City also has a similar look-up (http://smgs.us/3jth).

Cedar Rapids also will provide callers with contact information for property owners if renters want to verify information they saw online, said Kevin Ciabatti, director of building services.

Physically see a property - inside and out, Richard advised. If you're searching for a rental from out of town, try to find a friend who can look at the house or apartment.

If an online listing asks you to keep the rental arrangement secret from a real estate agent, that should be a red flag.

If you determine an online listing is a scam, flag it. Craigslist and other online sites usually will remove flagged listings fairly quickly, reducing the number of possible victims.

'You have to take some responsibility for your own actions,” Richard said. 'Your protection has to be at the front end.”