Potential Scam or Is this a Real thing now?

Question

I listed my rental on Zillow, Apartments.com, and Facebook marketplace. I recently got a call from an agent working for temporary housing. He wants to move in a family with 2 dogs to my house. He said the family has a pipe leak and they need to be moved in soon, stated his company works with insurance companies to help displaced families. I told him the price and we negotiated make this an all inclusive stay/ month to month rent with caps on the utilities, until they are done. He said sure and asked about the security deposit and asked all the appropriate questions. I told him they need to apply on the 3rd party sites so I can get a credit check and background check. He said since he’s working with the insurance company everything will be handled by them and payment will be through them.

I’m still going to request a background check at least on the parents, or if the company already has paperwork from them. The company is called Temporary Housing and said they will furnish the place for the family and work with the insurance company so I can get paid. They said they will email me once he gives all the information back to the insurance company and the family. He stated they can do direct deposit, I told him I don’t feel comfortable with that and he said he can fedex the checks to me then.

I’ll hear back from them Monday. I’m just doing my  due diligence to make sure I'm not getting scammed, but I don’t want to miss out on an opportunity to have it rented. I also got a call from a man and a woman who's working with this company asking about the area, house, parking, etc. Which makes it seem more trusting.

Again the Company is Temporary housing. They work under Sedgewick and even have a website Sedgwick.com. Would love any feedback or advice.

Hersh Shah · Answer

@Christopher Sarmiento

Idk about this company specifically, but we accepted a tenant through one of these services and it was legit. Their house burned down and they stayed for a year with no problems. They even had their insurance company replace their furniture and send it to our property.

Do your own research to make sure what they gave you checks out including the domain of the email from where they email you and what not.

Our lease was with the tenants. We required them to do background checks and apply through the portal knowing they won’t make the payments and insurance will.

Nathan Gesner · Answer

Yes, there are companies that help find housing for displaced people, paid for by their insurance provider. I've seen people displaced by flooding, fires, hurricanes, and more.

1. Do an internet search to confirm the company is legitimate. Don't ask them for their website. Find it yourself and verify the phone number, mailing address, etc.

2. Do a background check on every adult occupying the home. Even though insurance is paying the bills, your lease should be with the actual occupants. You want to ensure they are not a danger to you or the property and you will be going after them if the bills aren't paid.

3. Why are you afraid of Direct Deposit? The money can be put into your account directly: they won't have the ability to pull money from your account. Talk to your bank and learn how safe this is, then accept it. The postal service can't be trusted any more and there are delays with mailed payments.

4. When these situations arise, I typically increase the rent 25%, which is our standard practice for any monthly rental.

Aaron Porter · Answer

I would also make it a requirement for the tenant to get a renters insurance policy and list you as an additional insured on the policy.  You should always require your tenants to have and keep a renters policy for the entirety of their stay in your homes.

Not only does that give them protection for the tenants personal belongings but it also gives you the landlord protection from things such as lawsuits, and if the tenant damages the property in some cases you can make a claim against their policy instead of having to pay out of pocket for those damages.

Bjorn Ahlblad · Answer

Some of these companies pay for a while then quit. Google for feedback. I do not go for any type arbitrage but thats  just me.

Christopher Sarmiento · Answer

The Temporary Accommodations is requesting I fill out a W9 for their tax purposes. Would this be standard? Now I'm not feeling comfortable sending a 3d party business my social security.

There are a few steps to the process so I’m outlining them here!

• If your property has an application and they haven’t applied yet - please let me know and I’ll remind them to apply!
• If you don’t have an application or they’ve already been approved, the next step is getting a lease together and starting the landlord paperwork! I’ll attach some of the landlord paperwork here.W9 - this is required because we have to file taxes at the end of the year, and rental income is earned income.Landlord Contact Form - this is required because it keeps all the really pertinent information in one spot! (Name, phone number, notice to vacate)ACH Form - this is optional. If you want mailed checks Instead-- I can do that! Just let me know if you want them mailed to a different address than what’s on your W9. PLEASE NOTE if you have a P.O. Box I CANNOT overnight the first check.
• W9 - this is required because we have to file taxes at the end of the year, and rental income is earned income.
• Landlord Contact Form - this is required because it keeps all the really pertinent information in one spot! (Name, phone number, notice to vacate)
• ACH Form - this is optional. If you want mailed checks Instead-- I can do that! Just let me know if you want them mailed to a different address than what’s on your W9. PLEASE NOTE if you have a P.O. Box I CANNOT overnight the first check.
• If you don’t have a lease, let me know, I have several simple leases I can send you!
• With writing the lease, please keep in mind a few things!

• W9 - this is required because we have to file taxes at the end of the year, and rental income is earned income.
• Landlord Contact Form - this is required because it keeps all the really pertinent information in one spot! (Name, phone number, notice to vacate)
• ACH Form - this is optional. If you want mailed checks Instead-- I can do that! Just let me know if you want them mailed to a different address than what’s on your W9. PLEASE NOTE if you have a P.O. Box I CANNOT overnight the first check.

a.    If your rental is unfurnished I will be providing rental furniture for the client, so please make the lease start date at least 2-3 business days from the day you’re sending it to me if possible. Because I can’t order rental furniture until I have a confirmed start date.

• Specify the important details: Start and End date, Notice to Vacate, If any utilities are covered (if so which ones) Late rent fee (if any) etc.

• Typically, I’ll send the prorated first months’ rent, the second full month (if its past the 15th already) and any other one time fees. If there is a specific fee you need up front, specify it!
• Send me a copy or the lease before signing to review - when you send me the lease, let me know if you want me to get the client to sign it for you electronically or if you’d prefer to have them sign in person.
• After I get all the landlord paperwork back (W9, Landlord contact, optional ACH) I’ll be able to process the payment and get that sent out quickly! If it’s an ACH I’ll send you the batch report when it’s posted, if it’s a check I’ll send you the tracking number.
• Last thing I’ll need is the fully executed lease if it was signed in person, or if you needed to sign after the client.

• Typically, I’ll send the prorated first months’ rent, the second full month (if its past the 15th already) and any other one time fees. If there is a specific fee you need up front, specify it!

This was in the email

Christopher Sarmiento · Answer

@Lisa Thiessen Thanks lisa! This is a better alternative to these arbitrage scenarios. I'll apply for this and hopefully accept more possible leads.

Lisa Thiessen · Answer

I have not worked with this particular company, but I have done short-term leases with others. They are not going to pay you until you submit a W9. You also should not pay any contractors you hire until you receive a W9 from them. This is a standard tax form.

https://www.irs.gov/forms-pubs..

If you don't feel comfortable using your SSN, you can apply for a Federal Employer ID Number (FEIN or EIN) for your business to use instead.

https://www.irs.gov/businesses...

Melanie Thomas · Answer

I agree with the above. Do your research! We deal with companies that do the same. Temporary housing for folks via insurance. Still need them to apply and qualify. We do not put leases in the insurance name, its the individuals that still need to qualify regardless of who is paying. Good luck and happy investing!

Haresh Patel · Answer

@Christopher Sarmiento

I have worked with a couple of temporary housing companies and they were legit. They will not pay you unless you fill appropriate paperwork for them to issue you tax documents.

You can actually call the insurance company and ask them if the stated company is the company they are working with to get their customer placed in a house.

I have not done that but worth a try. Check on BBB and look at Google reviews as well.

Good luck!

Nathan Gesner · Answer

Have you ever used a check? It includes your bank account and routing number but it still doesn't authorize anyone to take money out of your account. Same with direct deposit. I have hundreds of renters paying online. I know property managers with thousands of tenants paying online. It's completely safe.

Potential Scam or Is this a Real thing now?

Most Popular Reply