Rental Scams
Do you know what to look for?
There are several scams out there targeting every area of real estate. The most frequently seen in our community is the online rental scam. The scammers will locate a vacant home and repost it, usually on Craigslist, at a ridiculously low price. After luring in potential tenants, the con artist will promise keys in exchange for the
security deposit and first month’s rent. They require the money be sent to them in certified funds, usually to a location out of the country, and they then promptly disappear.
Another scam involves homeowners that will rent their property when it is in foreclosure. They have stopped paying their mortgage and are pocketing the money each month without disclosing to the tenant that the bank will eventually come for the property.
So how do you protect yourself? Research similar properties online and know the market. Search the property address. If it is a scam, chances are it will pop up as a property used as a vacation rental or one that is actually for sale and not for rent at all.
Do some research on the property owner and/or their agent as well. Owners who live off island are required by Hawaii State Law to have a representative on Oʻahu to assist the tenant. Always ask to meet them in person and don’t rely solely on email. If the owner does not require an application and a signed written Rental Agreement, something is really wrong. Perhaps the best and easiest way is to talk story with the neighbors. They will likely have lots to share. Trust your gut and remember that if it sounds too good to be true, it’s probably a scam.
