Rental Scams bugs Hawaii
Photo by: Garethjmsaunders
In a media release Better Business Bureau, Hawaii and Honolulu Board of Realtors are warning landlords and prospective renters to stay away from rental scams running amok there. Online users are asked to be wary of fraudsters who are copying existing listings of rental ads and stealing money using them or are posing as prospective tenants while responding to online To Let ads. The two organizations have reported several complaints from people who fell for the well-laid out scam.
The scam is directed at both prospective renters as well as landlords. Acting as landlords, the fraudsters lure victims by offering homes at discounted rates. People who checked out the original advertisement are misled to believe that the advertiser has cut rates as a desperate measure.
The fraudsters inform seekers responding to the ad that the landlord is living abroad or in another state. They ask respondents to fill out an application form asking for personal financial information.
Then they are told to wire a security deposit of hundreds or thousands of dollars to the landlord or an agent outside Hawaii, on receipt of which, keys to the property are promised to be couriered to them. However, after wiring the money across, the prospective renters wait in vain for the keys to turn up.
Acting as a prospective renter, the fraudsters approach advertisers claiming they are moving to Hawaii. They show themselves as in urgent need to secure a rental and also drop a line that their employer or a sponsor would be assisting them with the relocation.
After hastily concluding a deal, they send across to the landlord a deposit check for well over the agreed amount, claiming later that it was a mistake or that the extra funds was to cover shipping costs and to furnish the house. They ask landlords to encash the check, take the security deposit from it, and wire the rest of the money to a third party like a shipping agent or a furniture dealer.
After the landlords wire off the money, their bank informs them that the check they deposited was a fraudulent one; they are left poorer of the money wired across to the scammers.
BBB and Honolulu Board of Realtors gave away general as well as special tips for renters and landlords to avoid being scammed.
General tips:
- Deal locally with people you can meet in person.
- Whether you are a tenant or landlord, be sure to have a detailed, signed lease in place before any money changes hands.
- Never wire money to strangers. Legitimate transactions don’t include pressure to send money by wire transfer services.
For Prospective Tenants
- Do not submit personal information or complete a rental application form without checking the potential landlord’s references.
- Go to bbb.org for a Reliability Report on the landlord or property management company.
- The State of Hawaii requires all landlords of short- and long-term rentals have a tax identification number. Check the state Department of Taxation web site and search the tax licenses ensure that a potential landlord is registered.
For Landlords
- Don’t accept a check for more than the amount requested, no matter how tempting the offer or how convincing the story. Ask the prospective tenant to write a new check for the correct amount and return the check originally provided.
- Ask that checks be drawn from a local bank or national bank with a local branch.
Report to BBB, Hawaii if you have any new information on the scam: Call 536-6956 or 1-877-222-6551 toll-free from the Neighbor Islands.
Source: hawaii.bbb.org
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