HOUSTON – Real estate fraud is on the rise in Houston. If you’re buying, renting or you’re a landlord, you could fall victim to scams if you don’t know what to look out for. Troy Cothran of the Houston Association of Realtors sat down with KPRC 2′s Bryce Newberry to talk about how to navigate the market safely.
Use reputable platforms
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When searching for properties, rely on trusted sites like the MLS, Zillow, and Redfin. Avoid listings from less reliable sources such as Craigslist and Facebook Marketplace where it’s tougher to verify and trust information.
Verify listings
If you find a listing on an unfamiliar site, cross-check the property details on HAR.com. Make sure the listing agent’s information matches across platforms to confirm that it’s legitimate.
Be wary of payment methods
If you’re a landlord working with a realtor or real estate company, or a tenant renting through a realtor or real estate company, Cothran says don’t pay the agent directly. Legitimate transactions typically require you to make payments through the brokerage’s approved accounts.
Beware of multiple applications
Criminals may use stolen identities and submit multiple applications. That’s a red flag. Cothran says it’s not at all typical for someone to approach a realtor or real estate company and ask to rent several homes.
Below-market prices
Rents that are significantly lower-than-market prices are another red flag, along with the absence of an easy way to reach the person you’re trying to rent through. Cothran says if someone doesn’t have their number on a business card for you to easily call them or for you to be able to refer someone to them, that should raise suspicion.
Credit and background checks
Cothran encourages realtors and landlords to perform credit and background checks on potential tenants. Multiple inquiries on a credit report could signal the tenant is trying to rent multiple properties at the same time.
Research their reviews
Before committing, research reviews of the agent and their company. A long history of positive reviews can indicate reliability. Cothran recommends checking reviews on the company website as well as online and digging a little to make sure the reviews are from actual clients and not fake.
Evaluate lease applications
Ensure landlord references are genuine by verifying payment history with bank statements. Beware of applications where the supposed landlord is unreachable or provides suspicious endorsements.
Understand the Risks of No Credit History
If prospective tenants tell you they have no credit history, know you may be taking a risk. Cothran says he finds that claim a little hard to believe, especially for people who’ve been adults for some time. He advises if you do take on a risk with a tenant who has no credit history, consider requesting a higher deposit in case things don’t work out.
Eviction processes
If a fraudulent tenant occupies a property, legal eviction processes must be followed. But whoever’s name is on the lease is the person responsible. So if a scammer signs your lease and then rents the property out to someone else, that becomes troublesome, legally.
Bottom line: Victims of real estate scams most often face financial loss.
If you or anyone you know has been the victim of real estate fraud, you can reach out to KPRC 2′s Bryce Newberry by email: bnewberry@kprc.com