Alert: Possible Real Estate Fraud

We recently learned of a potential case of real estate fraud that is occurring in Texas. The scam involves individuals approaching high-end lease property owners through real estate professionals. The individuals develop a relationship with the property owners and begin to work directly with that property owner. After a relationship with the property owner is established, the individuals convince the property owner to give them full access to the property. They then present themselves as property owners to potential buyers and renters, entering into fraudulent leases or purchases where they pocket the 1st month's rent & security deposits and then disappear. Property theft—including auto—is also known to occur in this method.

Property managers and owners should not use combination lockboxes on their vacant properties. It is too easy for criminals to obtain the combinations, then pose as the agent or owner of the property to try and scam a potential tenant. We prefer to use Supra electronic lockboxes, where we can track all showings and access to a property. If you do use combo lockboxes, be sure to change the combos frequently, and never give out the combo to the general public.