I-Team finds rental scams targeting vacant homes in DFW
NORTH TEXAS — Mendi Cruson wanted a big backyard, with more room for her family, so she began looking for a new home to rent.
"I started my search online, like most people do," Cruson told the I-Team.
That's how she eventually found a home in Fort Worth, owned by a man who said his name was Thomas Woodcock.
"He said, 'I have several properties that I lease out with me and my partner, but I live out of state,'" said Cruson.
The man instructed her to register her information at the website InvitationHomes.com so she could do a self-showing. The home had smart locks, so Cruson let herself in and took a tour.
She loved it, so she signed a lease and paid more than $2,000 for a deposit and the first month's rent. Cruson said everything seemed normal until the day they moved in when she had to pay a locksmith to change the smart lock code. Then an unexpected visitor arrived - a man in a gray car who wanted to know why they were moving into his house. Cruson said he told her he had just signed a lease on the property that morning.
"And I'm like, 'sir, I have a lease, I can show you all the documentation, I'm renting this house,'" she said. "He's like, 'Well I'm moving in this weekend, you just watch a see.' And then he speeds off!"
Not long after that, Cruson said there was another knock at the door. This time, it was two Invitation Homes employees.
"They was like, 'you've been scammed!'"
Cruson wanted to stay in the home, and Invitation Homes gave her a chance to re-apply for a lease, but the rent was higher. Her family was forced to move again, weeks later.
"We are always frustrated to discover that one of our homes has been used for these types of scams, which can have a devastating effect on the victims," Invitation Homes said in a statement to CBS News Texas. "Our goal, as always, is to offer quality homes and ensure our residents have great experiences. Our advice on fraud prevention includes watching out for eager requests for cash or wire payments with an emotional plea, abnormally high security deposits, and no required background checks. These tips and more can be found at www.invitationhomes.com/fraud-prevention and in a recent blog we published on our website. We encourage any consumer interested in renting one of our homes to contact us directly via our website at www.invitationhomes.com. We also advertise on a variety of trusted home listing sites like Zillow, Trulia, Redfin and others (we do not advertise on Craigslist)."
Experts say vacant homes for rent are often easy targets for scammers. Property manager Amy Hanson says the scammers will post real pictures of real homes with fake prices and contact information.
"They copy and paste the photos, they copy and paste the descriptions," said Hanson. "They'll rent the same house five times."
Technology has changed the rental process these days. From finding a listing, to booking a tour, electronically signing documents and paying fees and rent, all of it can be done without a tenant ever speaking to anyone.
But that convenience comes at a cost. That's why Hanson started putting up her own warning posters for people on self-guided tours; she says that's what many property managers are doing now.
The scam has targeted homes owned by several large property management firms, including FirstKey, Progress Residential, and StreetLane Homes, which combined own tens of thousands of rentals across North Texas.
The Better Business Bureau has posted an alert on Invitation Homes' profile warning about scammers who request payments through apps like Zelle, CashApp, and Venmo. It's something Mendi Cruson wishes she had seen before handing over her hard-earned money.
"I thought I had done everything that I was supposed to," Cruson said.
"As one of the largest providers of property management services for single-family homes in the U.S., our goal is to provide those who choose to rent with safe and desirable homes in their neighborhoods of choice. The safety of our residents and employees, in Metro Dallas and beyond, is our overarching priority," reads a statement from Progress Residential. "We continue to implement and refine our strategies to combat rental scams and illegal trespassing, always with the well-being of our residents and employees at the forefront. We have built strong relationships and cooperate fully with local law enforcement agencies to enhance our collective ability to safeguard our residents and neighborhoods and tackle these fraudulent activities head-on. We also actively recruit law enforcement professionals to join our teams and contribute to solutions. Our initiatives are designed to not only address current issues but also to anticipate and mitigate future risks.
We recognize that the challenges we face are not isolated to our company. Therefore, Progress Residential also actively engages with industry peers to exchange insights and best practices. This collaborative approach allows us to learn from each other and collectively develop more effective strategies to combat rental scams and related issues. We believe that by working together, we can create a more secure and trustworthy environment for all renters."
Progressive Residential offers the following tips for prospective renters:
- As we share on our website, when looking for homes, prospective residents should be wary and look out for red flags including:
- Properties with rental prices significantly lower than others in the area
- Properties being listed on sites like Facebook Marketplace and Craigslist
- Being asked for payment through cash apps like Zelle and Venmo or being asked to wire funds
- Receiving promises of no credit or background checks and high-pressure sales tactics
"Trespassing and rental scams are concerns that we take seriously for the safety of prospective residents, current residents and our communities," FirstKey said in a statement. "We're taking several measures to address and mitigate these threats, including:
- More frequent inspections of vacant homes to discover unauthorized occupancy.
- Security measures at vacant homes, including:
- Smart locks
- Security cameras (video and audio surveillance).
- Stickers and signage to warn/deter trespassers.
- Removing any home listings from our website that are suspected to be fraudulent or trespasser-occupied.
- Communicating with impacted neighbors to address suspicious activity.
- Collaborating with local law enforcement and other community stakeholders.
- Educating prospective residents about rental scams and trespassing."