A Renter's Nightmare: Phony Real Estate Agents Renting Homes Out From Under Owners
NEW YORK (CBSNewYork) – Believe it or not, there are bogus realtors are renting out homes without the owner's consent, leaving both the homeowner and unsuspecting renter with a nightmare to untangle.
Kathy and Kimberly Homes admit they can be a little nosy.
"I'm often looking out the window," Kathy said.
But next door neighbor Louis Pepe said he doesn't mind.
"The neighbor next door had called me to tell me that there is something outside with a lease. And I said we're not trying to lease out this house," Pepe said.
Pepe was the victim of a new scam where phony real estate agents tried to rent his home right out from under him.
"The cops have informed me that this is something that's common," Pepe said.
Experts say the scam is relatively simple; crooks comb neighborhoods looking for empty houses.
"They could be awaiting renovation, they could have been bought by a developer who might be flipping it," Hana Alberts said, senior editor of Curbed.
Then, as CBS2's Alice Gainer reported, they rent the vacant houses either by breaking in and changing the locks or making excuses to potential renters as to why they can't show the inside. They complete the transaction with a phony lease and even fake keys.
"For someone who is preying on these desperate renters, that's the prime opportunity," Alberts said.
In Pepe's case, his house was empty because he recently put it up for sale.
It's an all too common scenario, authorities say, who are charging a growing number of people across the country with operating similar rental schemes.
Real estate experts say it's a scam that's fueled by a tough rental market.
"Prices are rising, demand is still the same," Alberts said.
But prospective renters can protect themselves.
"It's always a question of doing due diligence," real estate attorney Al Fazio said.
First and foremost, Fazio said research the property to find out who actually owns it and only work with a licensed real estate agent.
"You should never pay cash to a real estate agent. You should make the check out either to the firm or landlord directly," Fazio said.
Pepe said enlist the help of your neighbors, too.
"Thank God my neighbors were smart and on it," he said.
In Pepe's case, the phony realtor was caught and is now facing charges.