Family lost house in fire....Scam????

Question

I posted our house for rent with a yard sign as well as Craigslist. I received a call from someone stating they are calling on behalf of a family that lost their house in a fire yesterday and was looking to find houseing for them. We are asking $675 but they asked about paying $875 for a 3 month lease (without my prompting).

Has this happened to anyone before? Part of me thinks this is a scam. I will be asking where he found out about the house and what his connection is to the family but didn't think of it right away. Any thoughts or suggestions for a situation like this?

I will say, I'm not really interested in a 3 month lease as that will put us right in January and not really interested in trying to find tenents in the winter snow.

Matt C. · Answer

About a year and half ago, my house was destroyed in a house fire. My insurance paid for temporary housing that was equivalent to what we had. There was a third party relocation company that handled all the search and negotiations. We looked and selected the house ourselves. The relo company tried to negotiate a 6 months lease at a higher rate but the owner wouldn't go for it. So, that part of the story matches my experience. In the end, it was a 12 month lease. The relo company paid the rent, 3 months at a time, by the way. However, I signed the lease and was responsible for the deposits, utilities, etc. The relo company anticipated that the owner would not go for a 6 months lease. If the people that have contacted you are legit they should be familiar with the common practice in your market. Ask them for a 12 month lease with a early release clause if they move out and you find another renter before the the term ends. That would guaranty to you 12 months of rent. I don't own any rentals, so I don't really know if that is a good idea or not.

Rob K. · Answer

Was the person calling from an insurance company? I have a house in a class A neighborhood with very desirable schools that was vacant in the summertime. I received calls from two different insurance companies asking for a three month lease. The house was up for rent for $1,195 and they were offering $1,495. One even sent the person to drive by the house and she called me. She did in fact have a house fire (that she caused) two streets away.

Karen Margrave · Answer

Very easy to verify, get the address of the house that burned down, and the information. Probably easily available in the local newspaper.

Colleen F. · Answer

After natural disasters I have heard this happening in a legitimate way. The insurance reimburses costs that makes it better for a family to go to a short term rental rather then a hotel if they can find a short term rental. Plus it is very tough for families to live in a hotel. However some stranger calling the next day after a fire inquiring doesn't seem right. Tell them you like to speak to potential renters directly. How would anyone even know the length of lease they would need the day after a fire...

Elizabeth Colegrove · Answer

While it does sound like a scam, I do know that insurance companies look for places to rent temporarily for customers who need housing after natural disasters.

John Rooster · Answer

I often get calls off my craigslist ads for people wanting a short term rental and are willing to pay over what I am asking for rent. Too labor intensive for my business model, so I pass. Although this could be a scam, I don't necessarily think it is just based upon what was said in the original post

Carlos Flores · Answer

Similar experience a couple of years ago. 3 months, above asking rent. Ironically, it was the same company insuring the house so it was easy to verify. Declined anyway. I'd run the tenants through the same process as anyone else (no matter who's paying).

Todd Bullinger · Answer

@Bryce I believe that was the same company I was dealing with and was told the same thing...that the address of the fire couldn't be revealed.

Bryce Y. · Answer

I just ran into this exact situation. I placed an ad on craigslist asking $995, and a representative for one of these programs contacted me saying they will pay $1250 for a 3 month lease and the company will guarantee all rents/deposits. The company was http://www.temporaryhousingdirectory.com/ Normally I wouldn't be interested since I don't want to do this all over in 3 months, but I am seriously considering it since it will allow me to get above market rents thru the winter, and get higher than the $995 I was asking when their term is up in the spring. (I dropped the rent a little to compensate for the time of year) I spoke to the rep and they seem up front about everything, except they said they could not reveal the address of the burned down house as it was confidential. Good to know this is (probably) not a scam.

Todd Bullinger · Answer

Thanks for all the help. A little update. I did call and speak to the gentleman that called. I do think this is a real situation. I was able to get some vaulable information from him that led me to this conclusion. Unfortunately for us, we don't have any desire for a 3-month lease as it would end in January and we don't want to have to find new tenents in the middle of winter. Again, thanks for all of your help.