Fred Leeds Property Management: How to Avoid a Property Management Scam Artist

What is Scam?

A scam is a dishonest scheme that involves swindling people out of their money in exchange for fraudulent goods or services.

Property Management Scam Artists

There are a myriad of property management scams that often get confused with poor property managers who don't do a very good job of maintaining the upkeep of the properties they are responsible for managing. Property management scam artists, on the other hand, aren't really property managers at all. Rather, they rent their property to would-be renters with the intention of renting it to others so they can collect the first and last month of rent before skipping town with the money. There have been some cases where property management scam artists have rented or leased a single property to a handful of people before suddenly vanishing with their money.

5 ways to protect yourself from a property management scam artist

1. Request to see the landlord's ID and search local government websites to verify that name on the ID matches the name listed for the rental property in question.

2. If a property management company is involved, find out who actually owns the property (the person you are dealing with from the property management company or someone else?)

3. Research the property management company you are working with to verify that they are a legitimate company by checking state or county records.

4. If a rental application is not requested, consider this a huge RED FLAG.

5. Ask the landlord if they are current on their mortgage payments. Some property management scam artists might actually be in foreclosure and will continue to collect rent as the foreclosure is happening at which point this becomes a dishonest ploy to collect rent when your rent should be going to someone else instead.