Can you see it coming? I know, it seems obvious to professional property managers and professional property owners, but there are many amateur rental property owners with good intentions that make small, simple mistakes, that end up costing them a fortune, or in some cases, their property to foreclosure. That's why it's so important that if you decide to rent out your property, you either really educate yourself on professionally managing rental property, or you get yourself a good professional property manager. Hiring a good property manager will be more than worth the cost in the long run.
Ok, commercial overwith, back to the story...
So, needless to say, that personal check bounces, and they spend weeks giving the owner fake stories about why it didn't clear, and when they'll be able to pay, and my kids are sick, etc, etc...
When the owner finally files the unlawful detainer, one of the persons involved in the fraud files for bankruptcy, which delays the eviction process. When the judge, months later, finally tosses the bankruptcy out of court, the second person involved in the fraud files for bankruptcy, delaying the eviction again for months! By the time they are finally evicted, they've lived there rent free for months, and the eviction doesn't hurt them, because they didn't use the real identities... It was someone else who now has an eviction on their rental history, not these criminals... So they just go out and do it again to another unsuspecting property owner.
Awful situation for the property owner. Could have easily been prevented.
It's so important, anytime you're renting real property, before you allow the resident(s) to take possession, you must collect a full month of rent and a full security deposit, in guaranteed funds (cashiers check or money order, NO PERSONAL CHECKS!!) Once the resident has paid the move in expenses in full, and in guaranteed funds, then they can take possession of the unit and you can pro-rate their rent so they are only charged for the days they lived there. This pro-rated rent is normally paid the second month they are there, so by month 3, they are paying their normal rent, and they were only charged for the days they actually resided in the unit.
If the property owners had insisted on guaranteed funds, these criminals would have declined the rental and would have moved on to find someone else to run their scam on.
These criminals were arrested, and they'll likely spend a little time in jail, but that's no consolation to the property owners who are probably facing foreclosure on the properties because they couldn't afford to carry the mortgage while these criminals were living in their homes, earning money subletting them, and not paying the rent they owed.
Monica Parretta and Timothy August
Don't be a victim! If you're involved in buying, selling, or renting real property, educate yourself, or find a real estate broker/realtor you trust to help you do it right.
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