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Consumers warned about Craigslist rental scam

07:58 AM PDT on Monday, July 21, 2008

By Associated Press

PORTLAND, Ore. -- For Annette Barrackman and other potential renters, the North Portland house looked like a deal: It had three

bedrooms, was in a nice neighborhood, and was offered at just $1,000 a month with utilities.

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Turns out, it was a scam.

Barrackman was suspicious of the listing on the popular web site Craigslist.com. When she drove by the home, she saw a "For Sale" sign.

Fortunately, she found out the home really wasn't for rent before she submitted an application that included financial information to the bogus landlord.

Declan O'Connor, the Hasson agent who represents the home's true owner, reported the fraudulent ad to Craigslist, which removed it.

"I've heard about this a few times but never had it happen before," O'Connor said. "Unfortunately, my phone has been ringing off the hook for folks looking to rent (the home)."

Authorities believe the false ad is part of a series of recent scams to trick potential renters into releasing personal information and even cash deposits. The scammers are apparently

trying to capitalize on Portland's hot rental market.

Because of tighter restrictions on financing for home buyers, many are renting instead. And the rising cost of gas is pulling people closer to work, transportation or schools.

Jim Kight, past president of the Rental Housing Association of Greater Portland, says renters bidding for good homes have helped drive up rates at his rental properties as much as 15 percent from a year ago.

"This rental market isn't hot; it's beyond that. It's steaming," Kight said. "The sad part is that this kind of market opens it up for these kinds of scams."

Real estate agents said they've heard of similar scams, such as one where fraudsters created fake ads of homes on the market, gained access to the homes, toured prospective renters, then

collected deposits, first-month's rent and data-filled rental applications.

Late last month, the state attorney general's office fined Florida-based Tenant Marketplace Inc. and banned it from Oregon after it allegedly compiled local rental information without landlords' permission and charged customers $149 for listings that were often out of date.

Barrackman said her suspicions about the rental scam were heightened by little things. The person who posted the ad wanted potential renters to reply to a personal e-mail, rather than Craiglist's anonymous mail, and used strange wording, like "hydro" for water.

Still, she was tempted.

"It was really a good deal. It made me wonder, but at the same

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