Fake Government Agency Leasing My Apartment?

Question

Hi BP. There is this lady who claims that she is with a government agency (we'll call it #1). She claims that she gets in contact with other government agencies (#2) and that #2 inspects the units, and then disperses the check to #1. #1 will then disperse the check to my property manager. This seems a little too good to be true, as she is stating that she can fill up my entire apartment complex with this company. What are the repercussions for me if this is a scam? Is there anyway that I can protect myself? She is signing the leases with my property management company tomorrow, and then she said that the rental check will arrive a few days after that. What's in it for her here and what can I write on the lease to ensure that she pays every month. Can she be sued if this is a scam? My biggest fear, is that in a few months, she decides that she is not going to pay rent anymore, and that I will be in big trouble financially. Looking forward to hearing some thoughts.

Nathan Gesner · Answer

@James Gleeson I'm curious why your PM doesn't answer this for you. They've been hired to protect your property, your income, and your time. It seems they're failing on at least two of those fronts.

I don't care who pays the check once the tenant is approved and occupying. It can be their employer, their Trust fund, or their wealthy Uncle from Minnesota. As long as the bill is paid and the property is cared for, I'm happy.

If this woman is legit, it should be very simple to verify. You may want to look at hiring a more competent manager.

Mitch Messer · Answer

Hey @James Gleeson! As a matter of principle, nobody — nobody — get's to sit down for a lease signing with us without certified funds hitting the table at the same time (if not before).

More often than not, "the rental check will arrive a few days after" hell freezes over!

Mark F. · Answer

@James Gleeson Hi James,

Like others have said. Sounds scammy. If you'd like, I'd be more than happy to get her government email from you and I can contact her through my government email to verify she is in fact who she says she is. Just PM if you need my services.

Steve Maginnis · Answer

Hello @James Gleeson,  I agree with @Mitch Messer.  Don't give keys until the checks have cleared.  I've seen forged certified funds also.  And don't forget to include security deposits with these funds.  If they have to wait for the second agency, then they can wait on keys.  You could also ask for references from other complexes where this has worked, and verify the sources.  Run their tax id's through state and federal levels online, etc.  Sounds pretty suspicious. I've been burned by several "legitimate" agencies over the years.  Be cautious.  Best of luck.

Bjorn Ahlblad · Answer

@James Gleeson for someone who is supposed to be close to signing leases she does not sound very well checked out. Is that your job or the PM's? No one has talked to her bosses, no letters authorizing her to do whatever etc?

Not for me, I'd tell her 'no'.

Jeff Willis · Answer

I am assuming US Government. Ask who the Government agency is, ask for a copy of the original award and the name/email address of the Contracting Officer. All federal rental/leasing requirements are spelled out in GSA form 3516

The US Government DOES NOT directly rent any real property unless it goes through the GSA and there is a contract issued by the Government. It could be a Prime contract that received the award, and if so, they will be able to tell you who the prime is and then you can check if it a valid contract through FPDS https://www.fpds.gov/fpdsng_cms/index.php/en/

The Government does not issue checks, they use ACH

This whole thing sounds like a BS SCAM

Shane H. · Answer

Is your PM familiar with her or the agency she represents? Do some solid due diligence and eliminate any doubt before you commit to anything. Lastly, if your gut is still saying "no" then walk away. It isn't like you don't have other options to fill vacancies.

Michael Ealy · Answer

James,

I got a government agency lease my entire building. So it can happen:https://www.biggerpockets.com/forums/311/topics/644570-how-i-made-over-1-million-on-1-deal-after-6-years-of-headaches

Fake Government Agency Leasing My Apartment?

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