Scam rental postings - They are becoming an increasingly common problem in the Phoenix rental property search on craigslist.  Craigslist can be a powerful tool to locate your next home, or help rent your property in Arizona.  However, more and more 'scam' postings are showing up each day that might depict an actual rental property, but will advertise it for a much lower price and direct inquires to a fake person - usually overseas.

What is a 'scam' posting on Craigslist?  Say you search for Gilbert rental property on craigslist.  You find a great 4 bedroom, 3 bathroom home with 3 car garage.  The photos look great and the asking price is WAY below market, let's say $800.  This is what the typical 'scam' posting looks like.  Often there is an email address that will go to a person who then will give a great story about how they just moved overseas, and if you mail them the deposit in certified funds, they will get you the keys and you can move in!  Great deal right?  Wrong.  You'll send money and never have rights to the property, and worst of all, never see your money again.

How to avoid a scam.  Search for properties through a reputable search engine or Arizona Property Manager.   If you use a free posting site like Craigslist, follow these rules to avoid being a victim:

• Never send money to a perspective "Landlord" via Western Union, Moneygram or other wire service.  It is best to refrain from sending any money overseas at all.
• Be sure there is someone you can meet in person to see the property and fill out the needed paperwork.
• Never email or scan personal information or identification documents.
• If you see a property listed on different sites (or the even different ads on the same site) for two different prices, the lower priced ad is generally a scam.  Contact what seems to be the legitimate ad and discuss what you are seeing.

REMEMBER, if a deal sounds too good to be true, it usually is.  Trust your instincts and follow the simple rules above to avoid becoming victim of a craigslist scam.  For a list of real Arizona Rental Property listings, click here.

WOAH! Over $794,000 reported missing from brokers Trust Account!

On 1/24/2012 ABC 15 news reported that the Arizona Dept of Real Estate issued a cease and desist order to a local Phoenix property management firm.  An audit performed in December 2011 by the Department uncovered this trust account discrepancy.

The brokerage has been ordered to cease all real estate operations.

The lesson here when choosing a property management company: Do your homework and don’t just go with the lowest priced, best sales pitch firm.  Look at a company’s track record and ask for references.  However, unfortunately, even these steps will not always shed light on a real problem. 

The best step you can take is to trust your intuition and ask questions when something doesn’t feel right.  If you suddenly go for over a month with no rental income, or odd charges appear on your statements, ask questions and demand answers.  There should not be sudden interruptions in your rental income – unless your tenant has stopped paying and your manager is recommending an eviction.

Don’t be shy, stay informed and if something isn’t right, it might be time for a change.  Speaking of change, when shopping for a new property manager be sure to ask about cancellation fees.  My firm, Renters Warehouse, has no cancellation fees ever.  You aren’t roped into sticking around if you ever feel the need to leave.

The best way to determine what your Arizona Rental Property will rent for is to do a Rental Analysis based on comparable properties in the neighborhood. Use websites such as Rentals.com, RentalHomesPlus.com, RentersWarehouse.com and craigslist to find properties that are similar to your rental and notice the price trends. Note differences in each unit such as:

• Upgrades

• Room Size

• Yard Size

• Additional Features, or lack thereof

• Community Features

Note, if possible, how long each property has been on the market. This will help you determine if the price is too high or too low. Once you can narrow your search to properties very similar to yours, you will be able to find a starting price. If you are unable to find properties very similar to yours, you will have to use some interpolation and deduct rent for lack of features or benefits, and add for upgrades.

Many property management firms will come visit you at your property and provide you with a free onsite rental analysis so you can determine if renting is a good option for you. A good property management firm will also come prepared with detailed information about your neighborhood and comparable properties for rent in your area. The goal of a good agent is to provide you as the owner the information needed to make a good business decision about your property.