Tenants: Don’t Fall Victim to ‘Squatter’ Scams!
What if we told you that you’re a squatter?
“But I have a lease agreement!” you say.
“Is it with the owner of the property?” we ask.
“Of course!” you proclaim.
We raise an eyebrow.
“Have you verified that?”
“Erm… no. How do you do that?” you ask, scratching your head.
“You check public home ownership records. Which we’ve done, and we can tell you: The name of your landlord isn’t the name of the person who owns the house,” we explain. “So you might be renting it illegally.”
This might seem crazy, but it’s not. It’s actually more common than you’d think, and it’s only getting worse.
Understanding Squatter Scams
Squatter scams are a growing menace in cities like Detroit and Chicago.
These scams typically involve fraudsters posing as landlords and renting out properties they don’t own. They often prey on unsuspecting tenants by offering below-market rent prices or creating a sense of urgency, making it seem like a great deal too good to pass up.
Here’s how these scams usually unfold:
- Fake Listings: Scammers post fake rental listings online using photos and descriptions of properties they don’t own.
- Impersonation: They impersonate the real property owner or use fake identities to communicate with potential tenants.
- Lease Agreements: Once they’ve lured tenants in, they present seemingly legitimate lease agreements.
- Payment Collection: They collect security deposits and the first month’s rent upfront, then disappear, leaving tenants in a legal and financial bind.
- Discovery: The scam is often discovered when the real property owner or law enforcement intervenes, and tenants find themselves illegally occupying the property.
Why Squatter Scams Are Increasing
Several factors contribute to the rise of these scams in urban areas like Detroit and Chicago:
- High Demand for Rentals: With a tight housing market, tenants are often eager to secure a place quickly, sometimes overlooking critical due diligence.
- Online Platforms: Scammers exploit rental listing sites and social media platforms to reach a broad audience with minimal oversight.
- Economic Strain: Financial stress and rising rents make tenants more susceptible to offers that seem like rare bargains.
Safeguarding Yourself Against Squatter Scams
As a tenant, it therefore falls to you to take proactive steps to ensure you’re dealing with a legitimate landlord before signing a lease agreement.
Here’s how:
- Verify Ownership: Check public records to confirm that the person you’re dealing with is the actual property owner. Most counties offer online access to property records where you can search by address.
- Request Identification: Ask the landlord for identification and proof of property ownership. Legitimate landlords should have no issue providing this information.
- Visit the Property: If possible, arrange to meet the landlord at the property. This provides an opportunity to ask questions and inspect the condition of the home.
- Cross-Check Information: Look up the landlord’s name and contact details independently to ensure they match the information provided.
- Consult Professionals: Work with licensed real estate agents or property management companies who can help verify the legitimacy of rental offers.
What To Do If You’ve Been Scammed
If you discover that you’ve signed a lease with a fake landlord, take immediate action:
- Stop Payments: Cease any further rent payments to the scammer.
- Report the Scam: Contact local law enforcement and report the fraud. Provide any documentation and communication you’ve had with the scammer.
- Notify the Real Owner: Inform the actual property owner about the situation. They may have their own procedures for handling such cases.
- Seek Legal Advice: Consult with a tenant rights attorney to understand your legal options and protect yourself from potential eviction.
- File Complaints: Report the scam to rental listing websites and consumer protection agencies to prevent others from falling victim.
Squatter scams are a frustrating and costly experience, but with vigilance and thorough checks, you can protect yourself from becoming an unwitting victim.
Always verify property ownership before signing a lease and stay informed about common rental scams in your area. By taking these precautions, you’ll ensure that your next move is both safe and legal.
Looking for a verified rental property in Metro Detroit? Check out our available listings (all with real landlords, guaranteed).