Renter beware

It’s not always easy to spot a scam artist, especially one posing as a landlord in today’s tight housing market.

Take, for example, a case that Andy Holcombe, an attorney with Legal Services of Northern California, had last year. A client paid to rent a home that had actually been in foreclosure.

“[Scammers] get a key and advertise the place for rent, people show up, see it’s a vacant house, somebody has a key to the front door, and they take their money,” Holcombe told the CN&R. “I’ve seen it more in foreclosed houses, being advertised and rented by people who really have no ownership interest at all, they’re just scamming.”

Chico’s average vacancy rate of 2 percent for rental homes and apartments, according to the North Valley Property Owners Association’s latest figures, can influence people’s judgment. There isn’t a lot out there, said NVPOA Executive Director Jennifer Morris, and “people are looking for deals.”

Most of the clients Holcombe represents as a housing rights attorney are “often searching for housing of last resort.”

“If somebody’s going to rent to them, they’ll grab at the opportunity,” he said.

Over the weekend, the Chico Police Department uncovered a rental scheme similar to what Holcombe described.

A local woman, Teresa Chase, allegedly posted two homes for rent in Chico that she did not own, according to a press release—one on the 1200 block of West Eighth Avenue and another on the 400 block of West 15th Street. Three victims came forward and said they’d made arrangements with Chase to rent the homes: one lost $1,100 and another lost $400.

Chico PD accompanied the third victim to a meeting with Chase about the rental. She was arrested and booked on charges of fraud, grand theft and violating probation.

This is a typical rental scam, where an ad is posted on Craigslist or somewhere marketable, and then a fake contract is drawn up, said Lt. Billy Aldridge. The scammer either meets the victims at the house or comes up with an excuse to meet elsewhere, a “contract” is signed, a cash deposit is made and keys are handed over.

“Once they get that deposit, they’re on to the next person,” Aldridge said. “You want to make sure you’re truly speaking with either the owner of the property or the property management that’s running it for them. If they can’t provide you with some sort of credentials to show they’re who they say they are, then obviously that’s the first red flag.”

Chase has a history of identity theft and scamming hopeful renters.

In July 2016, she was being evicted from her residence in Chico, which was set to be demolished. Instead of leaving, she illegitimately started renting out the property, according to Butte County District Attorney Mike Ramsey.

Chase was operating under a false name, “Carla Huff,” and provided a rental agreement and keys. Five separate victims of the scam ended up paying thousands of dollars, which Chase later told police she spent on “cigarettes and gas,” Ramsey said. She used Craigslist and physical fliers to advertise the property.

Law enforcement confronted Chase in a similar fashion—working with a victim to set up a meeting—and she is currently on probation stemming from those cases. Chase also has a record of identity and property theft, and confessed to counterfeiting checks in October 2016.

So how can people protect themselves?

Researching the property and verifying the owner is a good place to start. Ask for a business card and go by any management office listed to confirm. The Butte County Assessor’s Office can also look up the title owner by address. Aldridge said interested renters should never pay deposits in cash, and should contact Chico PD if they experience anything suspicious.

Rents that are much lower than expected are also a red flag. “If you’ve been looking around for rentals in the $1,200-a-month route for houses and suddenly someone offers you a house for $600 a month, that should be a clue,” Ramsey said. “It’s just like anything else: You need to dig a little further and find out, ‘Who is the owner here? … How can you show me that you’re the owner?’”