New wave of craigslist vacation home rental scams in South Lake Tahoe

You're a group of teachers from San Francisco, visiting South Lake Tahoe for the weekend before heading back to wrap up the semester. You've come to Tahoe to ski for opening weekend. You're a group of friends from San Diego, looking for a mini-reunion.

You arrive at the house only to find out it is rented to another group, one that turns out to be the legitimate renters. You've been scammed through an all too familiar situation in vacation destinations. All responded to an ad on craigslist for a vacation rental, complete with photos and details. When they contacted the name/number on the ad, they were sent what looked like legitimate documents but they were all fake. Money was paid and they were given an address.

These three scenarios happened over the past week in South Lake Tahoe, but they can be replayed dozens of times a year in just South Lake Tahoe as there is an endless supply of scammers, and victims.

South Lake Tahoe Police Department will take reports of the scams, but victims will need to file cases where the scam took place, normally their hometown. Reports can be filed, though the hundreds, and sometimes thousands, of dollars spent on the rental home through craigslist is probably long gone.

Earlier this year, the El Dorado County District Attorney's office was so concerned with the rise in scams found on craigslist that they filmed a informational video to distribute throughout California, warning potential victims about the home rental scam.

This is an epidemic," said Robert Leach who is the real estate fraud criminal investigator for the El Dorado County District Attorney's Office told South Tahoe Now in January.

During Christmas and New Year's holiday week in 2015 there were 30 reported cases of vacation rental fraud in South Lake Tahoe, up from the five cases in 2014. The only way to prevent the number from going up in 2016 will be through education.

New people being targeted this year by scammers are those looking for ski leases and for seasonal workers looking for housing.

"The best way to stop the fraud is not to rent a home on craigslist," said Leach. "Don't send money to people you don’t know. Mail payment only to a company with a physical address."

The homes that are being rented fraudulently are usually actual vacation rentals at the lake, but the scammers who are taking money don't have anything to do with legitimate renting of the homes.

Leach said that it is nearly impossible to stop the scammers as they are relentless in posting fake listings on craigslist. The on-line classified advertisement bulletin board company has worked with law enforcement agencies by removing the fake listings as soon as they are found.

"Craigslist is taking down five to ten ads a day for us," said Leach.

When potential victims contact the number on the craiglist ad, the person on the other end may sound legitimate and have all the right answers. They'll receive what looks like an official reply, complete with rental forms, photos, procedures and bank account numbers where the deposit needs to be wired into.

Even for the more savvy renter, the transaction looks real. They will look the home up on property tax reports, check things out, but the scammer always seem to have the right answers when these curious renters have questions.

"They will get an answer like 'I just bought the home so the title may not be recorded yet,' or 'The home is in my business partner's name'," said Leach. Many times the fake listings will have much lower prices that its legitimate counterpart.

"A lot of people ask the right questions, look into ownership, but the scammers always have the right excuses and answers about ownership," said Leach. "It hooks the renter in even further."

Michelle Benedict of Pinnacle Real Estate in South Lake Tahoe a call from a victim this week, someone who was researching a home Benedict had sold last year. He was doing his investigation after being scammed, instead of looking into it prior to losing money to a scam. The best way to enjoy a vacation home in South Lake Tahoe is to use one of the several reputable management companies. The group of teachers who showed up at one of Tahoe Destination Vacation Rentals (TDVR) Friday night had done a bit of research they would have learned the true owner and manager. TDVR owner Kathy Liebhardt found out from her legitimate renters that the teachers had showed up to use the house. Liebhardt quickly found them a home they could rent for the weekend, but the teachers were out their initial $800 paid through money orders to a person on craigslist.

If people find a rental home they're interested in renting, they should get the permit number (required to be posted on listings and websites in South Lake Tahoe) and look it up on the City of South Lake Tahoe's website. Find out who holds the permit and rent only through them, or their home management company.

"People get hooked in because the prices are lower, its enticing," Leach told South Tahoe Now. "If its too good to be true, it probably is."

The best way to get rid of the scammers is by education, according to Leach.

"Do not rent a vacation home on craigslist," he repeated.

Tips:

Use only credit cards. If you send a personal check, only mail it to the physical address of a vacation rental company. Don't take the word of the person renting the house for their address, google it and make sure they are legitimate. Do not use cash. Paypal has refunded some of the victims their money in recent cases but this isn't always the case.

If you suspect the potential transaction may be a scam, ask for a call back phone number, get their bank account number, email address and call local law enforcement.

District Attorney Vern Pierson commented, “An ounce of prevention is worth a pound of cure” and this is why we are encouraging people to watch our video and use these few basic steps before renting a vacation home:

- Use a rental company with a local address and a published phone number with a tried and true history
- Use a credit card that will protect you for the initial payment
- Speak with the person via the phone and confirm ownership through the County Assessor's Office
- NEVER wire money anywhere including a legitimate bank account
- IF IT SEEMS TO GOOD TO BE TRUE, IT PROBABLY IS