Lorain County — Lorain County is being hit by a housing scam.
Properties that are listed for rent on Craigslist are actually for sale from legitimate realtors.
This scam has been going on for years, but with rents on the rise, more people are jumping in on the con. In fact, more than five million people say they lost money in a rental scam according to Apartment List.
Those most at risk include people who are new to the real estate market or with less money to spend. And they're not the only ones getting a surprise.
For example, a great deal on Craigslist shows a lovely 3 bedroom in Elyria for only $600 dollars a month.
Too bad it is a scam. The real one is selling for $99,000, represented by a local realtor.
With the housing market heating up, so are the cons.
"They're using real listings and changing the phone numbers and changing the names of the owners so that people think they are really getting a good deal," says Realtor Bobette Gonzalez.
Thieves lift pictures and descriptions from actual real estate listings, then create their own fake ads.
Another house in Lorain is selling for $140,000, but was also in a fake rental ad on Craigslist. It’s since been removed by the site.
Katherine Hutt from the Better Business Bureau says criminals try to convince potential victims they have to rent the property fast without seeing it first.
"Everything is done by phone or email and they ask for the money to be wired ahead of time. Usually they are asking for some kind of a payment that is not traceable, a wire transfer a prepaid debit card that kind of thing. And once he money is sent it's gone," she explained.
And it's not just renters getting victimized.
Kerry Chen found out the home she owned and was living in was listed in a fake Craigslist ad.
"Someone who came to the door asking us if the house was for rent decided to show us the Craigslist ad saying that it was for rent. I was like, that's our house,” she said.
So many people were stopping by that the Chens made a sign warning people of the scammers.
But for all she knows, thieves may have already rented out her home. And she says she’s worried, “Somebody might show up in a month with a moving truck thinking that they're moving in our house."
So how do you avoid this scam?
- Stay away from properties that are below market prices.
- Never rent without seeing the actual place.
- Ask for documents proving the person offering the home has the rights to it.
- Meet the landlord in person. Most scammers come up with a reason why they can't do the transaction in person.
Read more about Rental Scams by clicking here