Tampa Bay Rental Landscape: Navigating the Rise of Internet Scams
Renters in the greater Tampa Bay area are facing an increasing threat: internet scams that target those seeking affordable housing. With the local rental market heating up, potential tenants must remain vigilant.
The Rising Trend of Scams
Dominic Cwiklinski, a Tampa Bay Technical High School health teacher, fell prey to one such scam while searching for rentals on Zillow. The property looked legitimate, fitting his budget in a market known for soaring prices, but after paying a $30 application fee through a third-party site, he received no response. Unfortunately, this was a common tactic used by scammers to collect fees under false pretenses.
Key Insights from Cwiklinski’s Experience:
- Application Fees: Scammers often request upfront fees to "hold" a property, even without allowing tours.
- Repeated Listings: The fraudulent property remained listed for over a month, potentially misleading hundreds of other renters.
Cwiklinski’s words: “It’s like – you don’t know what to do next. What else can I try?”
Market Conditions Favoring Scammers
The greater Tampa Bay region’s tight rental market, characterized by low inventory and a high demand for living spaces, makes it an attractive ground for fraudsters. According to Zillow, scams can emerge on any platform where users can self-post rental listings, including Craigslist, Facebook Marketplace, and eBay.
Important Tips from Zillow:
- Be Wary of Deadlines: Those in urgent need of housing should be extra cautious, as the pressure can cloud judgment.
Scamming Statistics: The Numbers Speak
The FBI’s Internet Crime Complaint Center reported significant financial losses attributed to real estate scams in Florida’s coastal regions. In 2021, scams resulted in:
- 304 victims losing $6.2 million across six counties, including Hillsborough and Pinellas.
- Notably, Hillsborough County alone accounted for 132 victims, losing approximately $3.5 million.
Monthly Trends and Increases:
Between January and July of the current year, complaints surged, particularly in the counties of Hillsborough, Manatee, and Pasco, with Pasco’s losses more than doubling.
Insights from the FBI:
Andrew Sekela, special agent at the FBI’s Tampa Division, estimates that actual losses could be two to three times higher than reported, emphasizing the prevalence of these schemes.
Common Tactics Used by Scammers
Adverse Possession Scheme
Often called "adverse possession," this tactic has evolved from physical signs staked in front yards to online listings that scrape images from legitimate properties.
- Scammers pose as owners on various rental platforms, soliciting application fees, security deposits, or even rent before their scheme is uncovered.
Real estate professionals like Tiffany Prete have seen their properties misused in these scams. After selling a home recently, she discovered a fraudulent rental listing for it appearing just days later on social media, inviting wary renters to be cautious.
How to Protect Yourself from Rental Scams
- Verify Ownership: Always check the county’s property appraiser website to confirm ownership.
- Use Trusted Sources: Stick to well-known platforms and verify the agent’s credentials through Florida’s Department of Business and Professional Regulation.
- Be Skeptical of Good Deals: If it looks too good to be true, it probably is.
Advice from Real-Estate Experts:
Gary De Pury, an attorney and broker, warns that rental scams thrive in areas experiencing housing crises. “Fraud follows booming business,” he states, emphasizing the importance of awareness.
Real Experiences with Scams
Rose Burke, familiar with the signs of rental fraud, nearly fell victim again while helping her daughter find housing. A "charming" property caught her eye, but upon calling the listed phone number, she discovered the person she had been communicating with was not the owner.
Burke commented: “I think that they’re targeting low-income people because there’s a certain desperation.”
Resources for Reporting and Avoiding Scams
- FBI Internet Crime Complaint Center: Report Internet fraud and scams.
- Realtor Websites: Verify real estate agents and property listings.
- Consumer Protection Agencies: Provide resources for rental and real estate awareness.
By staying informed and cautious, renters can navigate the treacherous waters of the Tampa Bay rental market, avoiding the pitfalls of internet scams as they search for a new home.