Real Estate Agent Asks for Check to be Made Out Directly to Her

General Landlording & Rental Properties
7yFollow

Real Estate Agent Asks for Check to be Made Out Directly to Her

Chloey M.
Investor · Atlanta · Member since 2018 · 65 posts · 68 votes

Hi you guys,

Wanted to run something by you....

I had a close friend who recently found a home he wanted to rent, (as a tenant) and something the real estate agent representing the property did that raised my eyebrows, but I want to see if I'm not thinking too hard about it.

He met the real estate agent at the property a few days ago, did a walk-through, and when it came time to make the deposit and first month's rent, she asked that he make the check out directly to her, since she is also managing the property.

My ears perked up because she didn't ask him to make the check out out to her property management business, but to her first and last name alone.  My scam alert goes off for obvious reasons, but I checked her out and she is a legit agent under Keller Williams, and her name and face is plastered on all the listings for this particular property. I would think that's a lot of boldness to put yourself all the way out there like that, and risk getting caught and identified.

Is this normal practice, and am I right to think she may be running a scam?

0Reply
88 views

Most Popular Reply

Brad LarsenPro Member
Property Manager · San Antonio and Austin, TX · Member since 2016 · 377 posts · 380 votes
7y

The most dangerous animal in the world is the Realtor acting as a Property Manager.  We see it time and time again where a lone wolf Realtor under a big box brokerage goes rogue and sees “leasing” as the easy money.  They list the home for rent, screen applicants with their spidey sense (no legit app procedures) and collect rent on behalf of the owner.   A poster above was right, this needs to be brought to the broker’s attention as that Realtor is 1) Not allowed to do that 2) Does not care or 3) Is outside of her realm.  

It brings up a giant debate point I should start another thread on.....should there be a license for Property Managers outside of a regular real estate license?  Should one off Realtors like this be allowed to perform leasing activities - collect deposits and rents - and advise their clients on such an ongoing sticky matter?  The pitfalls, potential mistakes, complaints, and poor fiduciary actions put the PM business in a bad light because we are not allowed to police our own.   Touching on more than you wanted....

Bottom line - contact the broker / office manager there and have them indicate that writing a check to the Realtor sounds a bit unusual.  Chances are they will correct that Realtor and confirm the other parts are true and legit.  

1Reply
See this reply in the discussion

11 Replies

Jump to latestLatest
  • Alex S.
    Specialist · Cleveland, OH · Member since 2018 · 270 posts · 187 votes
    7y

    Is the property belongs to her too?

    0Reply
  • Chloey M.
    OP
    Investor · Atlanta · Member since 2018 · 65 posts · 68 votes
    7y

    Hi, @Alex S.!

    No, she says she is managing the property for the owner.  I tried to find the owner's on the county tax assessor's office, but couldn't locate the property.

    On the flip side, it also lets you search against a person's name, and it appears that she does not own property in the county under her given name.

    0Reply
  • Alex S.
    Specialist · Cleveland, OH · Member since 2018 · 270 posts · 187 votes
    7y

    Idk, sounds fishy. I have my tenants pay to my LLC. I would not take a check to my name.

    0Reply
  • Patricia Steiner
    Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes
    7y

    No.  It's not a normal practice.  Her broker needs to know...

    0Reply
  • Chloey M.
    OP
    Investor · Atlanta · Member since 2018 · 65 posts · 68 votes
    7y

    Thanks, @Alex S.!  I thought so, too.

    @Patricia Steiner, I thought the same!  I wouldn't want anyone else doing business with her. Real estate agents already have a shady reputation in my area.

    0Reply
  • Steve Vaughan
    Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    7y

    The most I will receive after showing a place for the first time is a completed application and possibly a holding deposit that shows they are serious.  They receive a holding agreement and receipt with that.

    The holding monies (returned unless approved, which takes a couple days) are made payable to my mgt co. I also give them a biz card.

    No way anybody should make a 1st month rent and deposit out to a private party upon first meeting. Could be a CL scam or some such.  A realtor should know better for sure.  Well...

    0Reply
  • Chloey M.
    OP
    Investor · Atlanta · Member since 2018 · 65 posts · 68 votes
    7y

    That’s another thing. Apparently he had to pay a $200 holding fee prior to this, and did so over PayPal. I’ve never heard of using PayPal for something like this.

    Thank you so much for your input!

    0Reply
  • Brad LarsenPro Member
    Property Manager · San Antonio and Austin, TX · Member since 2016 · 377 posts · 380 votes
    7y

    The most dangerous animal in the world is the Realtor acting as a Property Manager.  We see it time and time again where a lone wolf Realtor under a big box brokerage goes rogue and sees “leasing” as the easy money.  They list the home for rent, screen applicants with their spidey sense (no legit app procedures) and collect rent on behalf of the owner.   A poster above was right, this needs to be brought to the broker’s attention as that Realtor is 1) Not allowed to do that 2) Does not care or 3) Is outside of her realm.  

    It brings up a giant debate point I should start another thread on.....should there be a license for Property Managers outside of a regular real estate license?  Should one off Realtors like this be allowed to perform leasing activities - collect deposits and rents - and advise their clients on such an ongoing sticky matter?  The pitfalls, potential mistakes, complaints, and poor fiduciary actions put the PM business in a bad light because we are not allowed to police our own.   Touching on more than you wanted....

    Bottom line - contact the broker / office manager there and have them indicate that writing a check to the Realtor sounds a bit unusual.  Chances are they will correct that Realtor and confirm the other parts are true and legit.  

    1Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    7y

    I agree this is probably a REALTOR that thought she could manage for some easy money or to help out a friend. I don't know if it's legal in your state for her to collect funds in her personal name but it certainly doesn't sound professional or ethical. I would call the Broker and get to the bottom of it quickly.

    Yes, there should be a separate license for Property Management. In my state, the typical sales agent lists a home and works for the seller for about four months while taking no responsibility for the Buyer or the property. My business relationships last 8-10 years and I take a great deal of responsibility for the client and the property. If anything, Property Managers should have a much higher education standard and oversight.

    The DIY Landlord Book4.7247 Reviews
    WebsiteView Page
    0Reply
  • Jessica Sadusky
    Real Estate Agent · Yardley PA · Member since 2016 · 22 posts · 13 votes
    7y

    A check should never be made out directly to the Realtor, not normal practice. 

    Contact her Broker. 

    0Reply
  • Chris MasonPro Member
    Moderator
    Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
    7y

    Question that no one else has asked:

    Have you actually verified that she is indeed that Realtor whose name is plastered all over the place? 

    1Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free