3 secrets to avoiding a vacation rental scam

Carole Hunter thought the $1,950 for a weekly rental in San Francisco was too good to be true. She was right.

Hunter, who had found the room through a Web site called RentalsExpress.com, had wired the money directly to the owner. But when she arrived in the City by the Bay, she discovered that the condo on New Montgomery Street didn’t exist.

There was no such address. We were absolutely devastated. The loss of the money is bad enough, but the fact that we were duped is the worst feeling. This is a warning to tourists to be very aware of what kind of fraud takes place over the Internet.

Hunter eventually found alternate accommodations, but she’ll never recover the $1,950. I contacted RentalsExpress.com on her behalf, and it hasn’t responded. However, the language in its terms and conditions appears to let it off the hook.

[The company] assumes no liability for damages, direct or consequential, which may result from the use of the RentalsExpress.com, even if [it] has been advised of the possibility of such damages.

She’s hardly alone. I recently wrote about Sue Barnett, an editor from San Francisco, who tried to rent an apartment in New York through Craigslist. “The apartment numbers did not exist, and the phone number we had was no longer accepting incoming calls,” she remembers.

How do you avoid being scammed by a nonexistent vacation rental? Here are three tips.

1. Pay with a credit card. Hunter wired the money. Bad idea. Barnett used PayPal, which eventually refunded her money. My advice? Use a card with a proven dispute-resolution department.

2. Do your due diligence. Look up the property online. Google the postal address. Odds are, if it doesn’t exist online, it doesn’t exist.

3. Use a reputable site. A Web site like Zonder.com screens all the properties it lists, so you can be sure they’re real. Others don’t.

Hunter also told me about a site called Lookstoogoodtobetrue.com that tracks scams such as the one she fell for.

Here’s hoping you don’t fall for it, too.

  • MarkieA

    I find it hard to believe that “we assume no liability for damages,…” will allow a company to get away with this. I should spray paint that on my car, so when I run into anyone, I’m covered, right? Folks, just because the owner of a business posts a sign that says “he’s not responsible” doesn’t mean that he’s not responsible. I would urge Ms. Hunter to pursue legal recourse and not be dissuaded from RentalsExpress.com’s supposed legal armor.

  • Bela Fleck

    I was going to say the same thing as Markie. Take ‘em to court anyway. Just because they say they’re not liable doesn’t necessarily make it so.

  • http://www.endlessrentals.com David

    Its so important for our industry (Vacation Home & Condo Rentals) to make sure that customers are not taken. Vacation Home Rentals can be a great alternative to hotel rooms. Here’s two additional “secrets” to keep in mind.

    1. Member of the BBB
    2. Member of VRMA (vacation rental manager’s association)

    These help give credibility to the sites and piece of mind for the renter that they are dealing with a reputable company.

    David

  • Ted – Phoenix Justice

    I love vacation rentals and (knock on wood) have never had an issue with the over 20 vacation rentals I have done in the last 3 years. I tend to go through http://www.cyberrentals.com and always pay by credit card or check.

    It is always important to keep in contact with the property owner and I refuse to go through “agents”.

  • cullen

    I see a lot of those sites like the office break room message board or the local community-friendly grocer with these listings pushpinned up there. They are just providing the space, they are not renting the properties out. In fact many real hands-on rental companies advertise on sites like that.

  • http://www.vrbo.com/185800 Patricia Eachus

    One bad apple doesn’t contaminate the entire bushel. We have two lovely studios in Hawaii on our property…think mini resort. To pass the savings on to the guest, we don’t do credit cards. However, I take just a one night deposit via personal check (no money orders or cashiers checks…as they are the opposite scam) and ask for cash upon arrival and approval of their luxury suite. All guests deserve value for their dollar and honest representation. We have rented for many years for our own vacations through vrbo.com and NEVER once ran into a problem. Let’s not create a bigger issue than is out there. The majority of us are GOOD guys. I do suggest though NEVER NEVER NEVER pay upfront…a small deposit is adequate for all of us to hold your reservation.

  • Sheryl

    I always use http://www.vrbo.com for vacation rentals. After you book a rental, just go back to the site and register your trip for a “rental guarantee”. If the vacation rental listing turns out to be a fraud, VRBO will give you your money back and help you find a new rental. I’ve never been scammed but it feels good to know I have recourse if it does happen.

  • Matthew B

    Another thing you can try is google maps. Look up the address and look at the street view. If Googe maps can’t find the address or gives you a view of a cemetery, alarms should start ringing. Google maps is not infallible though, my sister’s address shows the house across the street, it has the odd and even numbers mixed up for that street. The photos they use may be out of date, so if the building looks like it’s under construction, that is not necessarily still the case, it may have been open for business for a couple of months.

  • Chicky

    If the area of the condo in question has followed the lead of other places, find out what county the property is in (if in the US) and see if the county has its tax assessor’s office online. If so, you should be able to look up the tax record (which is public) online by address. The tax record will tell you how much the building is worth, square footage, when built and a few other tidbits. If it doesn’t say, that’s trouble. Or, if it says the purpose of the building is “storage” or something strange, you know it’s bad news.

    If the tax assessor’s office isn’t online, you should still be able to contact them and ask for a copy of the tax and appraisal record. If they ask why, be upfront and tell them. The information is public record and it is not illegal, immoral or unethical to view it.

  • AmandaP

    So sad that websites like this are out there – Unfortunately, I hear of people being taken advantage of by similar operations all of the time!! The best way to avoid such scams is to rent directly from a professional management company. That way, the homes are individually owned, but the management company provides standard and secure payment procedures, professionally cleaned and inspected properties, and is often a member of the Better Business Bureau or Vacation Rental Managers’ Association (VRMA), as David mentioned earlier. AAA also rates some vacation home rentals across the country – Third-party endorsements like these are a great way to ensure it’s a reputable company you’re dealing with. You can search through each of these websites for vacation rental companies in specific areas (http://www.vrma.com, http://us.bbb.org, http://www.aaa.com)

    Professional management companies often have virtual tours online, too, along with guest testimonials, a 24/hour customer service contact, and partnerships with local vendors and attractions.

    A nonprofit vacation rental industry association has actually been formed to educate the traveling public on this very topic, and prevent people from going through the same ordeal – Discover Vacation Homes. Their national website will be launching soon with more tips & details at http://www.DiscoverVacationHomes.com.

    I hope this works out for Carole, and thanks, Chris, for bringing attention to this important issue!!

  • Carver Farrow

    The disclaimer is completely irrelevant in this case for numerous reasons outside of the scope of this reply.

    The question is what is the relationship between the website and the condo owners. If they are merely providing space, then suing them would be aking to suing a newspaper for a fraudulent classified ad. However, if the relationship is more entangled: do they get a percentage, do they collect the money, etc,. then they might become an agent of the owner and liability can be imposed.

    If Ms. Hunter has a good faith belief that the website is involve in more than just providing space, she can absolutely sue in small claims. The cost is minimal. Nothing like receiving a Summons and Complaint to make the unresponsive responsive.

  • Meredith P

    A number of hotel chains offer vacation rentals, such as Starwood and Disney. The SVO (Starwood Vacation Ownership) does give you the flexiblityof the Time-share experience with or without the commitment and it does also have the comfort in knowing there is a real company behind it.

    I would also check to see what the major chains have available if you want the experience and have the piece of mind behind it…

    (Speaking from experience in the travel industry and not endorsing any one company.)

  • Erica

    Just want to add my “me too”: I wouldn’t rely too heavily on any of the online maps; NONE of them can find my house, which is 2 years old. My old one, build in 1950, was marked at the other end of the block. It’s a good start, but don’t let it be definitive.

  • proud_bay_man

    Just to let you know in the City of San Francisco, vacation rentals in a residential area are illegal if they are less than 30 days. Please call Lois Scott at the Planning and Zoning Department on the sf.gov site and report them. These people are in for a rude awakening. Please flag these ads on Craigslist! Simply do a search for your neighborhood in the “Vacation Rentals” section under housing. If you are nowhere near a hotel or a motel or a business district, please take a screen shot of the ad for evidence and report it.

  • http://bpmstaug.com Karen C

    Be on the watch for this phone number:

    (206)-309-7174

    and this address:

    276 S Bender Ave,
    Humble, Texas, 77396

    They are advertising properties that DO NOT belong to them & collecting deposits via Western Union.

    We accidentally found 2 of our properties advertised on forgetaway.com (The Weather Channel) that we did not place. When we inquired about the property (ours) we were told to wire funds to that Western Union account. BOGUS

    Our suggestion is not to use any of the vacation rental assistance websites. Go only through licensed property managers & real estate agents.

  • Thomas Kosich

    Beware of TLC Mt Hood Cabin / VRBO # 151752

    This cabin is listed as exquisite, reality is fair AT BEST…beware of dishonest owner as he will hold your deposit hostage upon departure. I have rented from VRBO over 12 times in the last year and never had a problem until I made the mistake of renting from this owner.

    Do yourself a favor and rent another property in Mt Hood / Goverment Camp, this owner is dishonest!

  • Kalpesh

    I always go through http://www.vacationrentalpros.com for my most of florida trip. They are the property management company so all the vacation rental property managed by them. They have very fancy calender with availability of property or pet allowed vacation rentals.

  • http://www.bearfootnlodge.com/ David Roberts

    As the owner of a rental cabin I can tell you that there are a few basics that renters can follow to keep from getting scammed:
    Talk to the owner, scammers don’t like to do this.
    Is there a website, look up the domain? Most scammers do not keep a web site, it is too easy to trace. If they have a website it will be scant and the domain ownership will be blocked from view.
    You do not have to go through a management company to keep from getting scammed. Nor will going through a management company keep you from getting scammed.
    Scammers rarely take credit cards, again, too easy to trace.
    Look up the address with the state property tax assessment records, in Tennessee and most states you can look up an address and get the owners name and a lot of other info.

    Also keep in mind that there are always people trying to scam us owners so don’t be offended when we ask for proof of identity and other things.

  • Jim Morrison

    this is an informative site. We had good luck with VRBO (Vacation rentals by Owner) a number of times, but just came back from a very disappointing trip to Vancouver, BC, Canada. The house had someone living in the basement that they didn’t tell us about. The house keeping was deplorable. Hair, bugs, you name it. We cut our trip short. The house was old and in poor condition and there was no egress from the upper floor other than an unprotected stairway. The problem is that if you book something and it doesn’t work out you are in trouble if there are not other places to stay available. I guess VRBO offers insurance, but it is just money back for your rental, not a place to stay in a strange place with no where to sleep. Warning: Do not book a VRBO rental without seeing it first, or having someone recommend it.

  • http://VRBO Matt

    Has anyone actually collected on a VRBO scam? I’m looking at an exclusive place on the beach that the owner is offering @ ~100/night cheaper than everyone else. The rental for 10 nights goes for 4k$ and he wants 1k$ up front in a check. Doesn’t take credit cards or paypal. The check up front part set off my alarms. Any advice?

  • http://VRBO Matt

    Follow up here… GREAT suggestion checking via property taxes.. Found the taxes listing, found the property manager and verified the owner of the unit. Now i just have to get him on the phone. THANKS!

  • Dwilliams

    Vacation rentals of south florida is a scam.Once you give the deposit they jack the price up and then threaten you if you dont pay the much larger amount.Nice website but its all about ripping you off for your deposit mmoney.

  • http://www.apelilasinoutcleaning.com/ cleaning Oahu

     Becoming a scam victim is really a bad experience. You lose a lot of money that is why you need to make a research before making any kind of deal online. Doing this will give you an assurance that the vacation rental that you will be choosing does really exist. When you do, you will just be enjoy the whole Hawaiian experience.

  • Anonymous

    There is nothing worse than paying good money for a rental apartment, only to find it doesn´t exist. Always check the smallprint in any rental agreement and pay on arrival where possible.

    http://www.yourholidayclaims.co.uk/

  • Anonymous

    There is nothing worse than paying good money for a rental apartment, only to find it doesn´t exist. Always check the smallprint in any rental agreement and pay on arrival where possible.

    http://www.yourholidayclaims.co.uk/

  • timtimx

    Beware of anyone renting an apartment from this email address in NYC
    libertyapt002@gmail:disqus.com

    don’t send money to this account, they are fraudsters.

    NAME OF BANK : ………… BANK of America
    ACCOUNT NAME:……….. Paul Johnson
    ACCOUNT NUMBER:…….. 237-022-805-687
    ROUTING NUMBER:……… 026-009-593
    BIC/SWIFT CODE:…………. BOFAUS3N

  • NYgrl02

    Timtimx- are you in NYC? 

  • Pingback: NYC On A Budget « Travel Musings of a Twenty-Something

  • http://twitter.com/IamILLWiLL816 ILL WiLL

    Dont do it… Any legit company or individual will accept paypal. If a person who refuses to accept Credit Cards or Paypal as a form of payment is Fraud! Remember Credit Cards and Paypal are best ways to secure a transaction and any money you send someone.

  • http://twitter.com/IamILLWiLL816 ILL WiLL

    Dont do it… Any legit company or individual will accept paypal. If a person who refuses to accept Credit Cards or Paypal as a form of payment is Fraud! Remember Credit Cards and Paypal are best ways to secure a transaction and any money you send someone.

  • Elayne H. Howard

    A few years ago, we were a victim of scam too. I tell it was horrible! We should have seen it coming since it already sounds too good to be true. So travellers, be wary! arrowheadpigeonforge.com