Vacation rental fraud is a huge obstacle to the growth of the vacation rental industry. As an individual who owns multiple vacation rentals, enjoys renting vacation rentals and owns a vacation rental listing site (VacationRentalDirect.com) -I have seen all aspects of vacation rental fraud. Let us review as many as possible.

Vacation Rental Owner Scams:

Overseas Cashiers Checks

I get spammed all the time by individuals who are interested in renting one of my units for a family member of business associate who will be arriving from overseas. Inevitably all of these individuals want to send me a cashiers check for an amount greater than the amount of their stay to cover incidental expenses, etc. I supposed to newbies and perhaps members of the older generation, this scam works. It only works because the overseas cashiers check that they will send you will not clear for 30 days or more. Thus after 45 days you will most likely have spent the money and that’s when the cashiers check will bounce and you will be forced to come up with the cash.

Propagating the problem further, many bank tellers, ignorant of their own bank’s internal operations, are disseminating bad information to their customers, telling them the bank drafts clear in 24-48 hours. What really happens is that per the 1992 Federal Reserve Board Regulation CC, the bank MUST make the funds available in you account in 48 hours, but the check has not cleared/bounced yet. Get the picture? Two different events, the bank makes funds available, then the check either clears or bounces about a week later, after bouncing around to incorrect Federal Reserve locations, or bank accounts. Virtually no one understands the big picture mechanics behind depositing checks, including tellers. The average bank draft or cashiers check can take 2 weeks to clear, not 2 days. Yet everyone thinks cashiers checks are as good as cash, and they think they clear the next day. Bottom line, the scammers know the banking system well, and capitalize on this arbitrage of time quite well. The banks make the funds available in your bank account within 48 hours of your deposit, days before the cashiers check clears- or bounces. Then they take the money back out of your account, and blacklist you.

Vacation Rental Renting Scams

I would guess that renting a vacation rental presents the biggest opportunity for fraud. Just today I got a call from a vacationer who had sent $300 to an alleged vacation rental property owner for a deposit. The owner / scammer emailed back and said that his manager has received the deposit, but he had been in a car accident and was in the hospital, would the prospective renter mind sending in another deposit check for $300?

I’ve also had it where the prospective renter has sent in a deposit, signed a contract and went to the property for their stay only to find that the vacation rental did not exist.

For every 5 horror stories there are a 1000 success stories, but the risk remains. Prospective renters need to take every possible precaution to protect themselves against fraud. Here are

7 Ways to Avoid Vacation Rental Fraud

1) Pay via credit card. Credit card companies hate chargebacks. Scammers will have a lot of chragebacks and won’t be accepting credit cards for long.

2) Does the vacation rental have a website? Most vacation rental owners now have websites, and most scammers won’t go through the trouble of creating a website. Look up who owns the domain of the website, using a WhoIs server. If the ownership if the domain is hidden that should be a big red flag that something is suspicious. Cross reference the name of the domain owner with the owner of the vacation rental.

3) Does the vacation rental owner answer the phone or do they prefer to communicate only via email? If you cannot ever communicate via the phone, that is another huge red flag.

4) is the email address of the property owner a @aol.com, or @gmail.com or @yahoo.com or @hotmail.com address? Many vacation rental owners still have these types of email addresses, but so do many scammers, because they are easy to obtain. I always prefer to deal with owner who have the same email address as the domain of their website. In my own example, my website is www.rosewoodpointe.com and my email address is rentals@rosewoodpointe.com.

5) Is the property owner / property listed with the local Chamber of Commerce?

6) Does the Better Business Bureau have any recent reports against the owner?

7) Google the property owners name, phone and email address. If this individual has any record of previous misconduct many people will report it on public forums, etc. Google the actual property address as well to make sure the property exists.

Check out the various vacation rental fraud reporting blogs and databases, here are a list of the ones I am aware of:

- VacationRentalDirect.com Fraud Reporting
- Paradise Properties by Owner has some good scam alerts.
- HomeAway.com has a list of actual emails other property owners have received.

ULTIMATELY USE THE SNIFF TEST, IF SOMETHING DOESN’T SEEM RIGHT, IT PROBABLY ISNT’ RIGHT. ALL PROPERTY OWNERS SHOULD BE COURTEOUS AND WILLING TO ACCOMMODATE ANY REQUESTS YOU MAY HAVE REGARDING THEIR PROPERTY. IF THEY SEEM INDIGNANT OR RUDE OR UNWILLING TO BEND OVER BACKWARDS TO MAKE YOU FEEL GOOD ABOUT SENDING IN A DEPOSIT CHECK, THEN MOVE ON TO ANOTHER PROPERTY!!!!!!!!!

Scams on Vacation Rentals By Owner Listing Sites

As much as we would like to guarantee that every property listing on our site is legitimate – it’s just not feasibly possible to do so. Fraudsters can sign up using stolen credit cards at any time. Until we get the chargeback notice, that listing will be live on our site. There are areas which are more prone to scams, those areas we review the transactions much more closely. We even went so far as to block all listings that originated from Nigeria.

Note: I am going to try my first “trackback” here to reference a post on another blog at FlipKey, which also posts material about the vacation rental industry. It’s a good, well informed blog, check it out.

Anyways, FlipKey had mentioned that two other vacation rental by owner listing sites have recently implemented a sort of vacation rental insurance to protect vacationers from renting a vacation rental that doesn’t exist. We are considering offering a similar type of insurance for renters at VacationRentalDirect.com. You can read more about it at FlipKey’s blog HERE..

Offiver in Iraq Scam – Justine Vincler
Name: Justine Vincler Email: j01vincler@gmail.com Phone: Start Date: // End Date: // Number of Adults: Comments: Aloha, My Name is Justin Vincler (Petty Officer) of United States marine currently in Iraq, battalion of Kane’ohe-based Marines. It`s in respect of your vacation listing,I am planning a surprise vacation gift package for my Godson and his newly wedded wife alone with treat while currently on an active duty,please check availability and get back to me immediately,the scheduled date will be 1st thru 22nd Sept. 2007,(22 Days)if this has already been booked please advice on the nearest date you have available,include cost for the period, Security Deposit, Cleaning fees, Tax and any order major services to be rendered,for the couple alone,no pets,they don’t smoke either.l will need to conclude this booking early enough for them to avoid any inconvenience during there stay. Mahola

Beware Wgen Renting in Manhattan!
We received some recent reports of fraudulent activity for a couple properties in the Manhattan area of New York! Please be careful. We’ve removed a couple of the properties that were causing the problems, but there may be more. Ask the property owner many questions both via phone and email. If they are pushy about demanding that you send them a cashiers check for the deposit, step away from the transaction!

Tahoe City, California, 4 BD / 3 BA / Sleeps: 10 —– The perfect mix of Tahoe charm and luxury

Jul 1, 2007 – Sep 1, 2007 July 1 – September 1 four night minimum available.

Fraud from this email address: NWLF1122@aol.com
A person with the e-mail NWLF1122@aol.com has been contacting me and telling me that the check is in the mail. I charged only $400.00 but his check is for $3000.00. I told him that it is not available and that I am contacting the authorities, but he keeps e-mailing me. I have copies of all his e-mail. Please look into this person, his name is Gerry. Sometimes the messages say that they come from Italy or Central America. I want no part of a scam.

Buying an Investment Property on the California Gold Coast
Christine talks with realtor, Meredith McKenzie about the California Gold Coast vacation home market. For transcripts of the podcasts, as well as, tips and advice for second home owners, visit ownercommunity.homeaway.com. Have a question for Christine? Leave a message at (512)493-4340 and she’ll answer your question on the air.

Another UK Fraud Fraud Alert
Here is a copy of the email I got today: From: monalisa_donald@yahoo.com [mailto:monalisa_donald@yahoo.com] Sent: Monday, July 23, 2007 5:12 AM To: rentals@rosewoodpointe.com Subject: Rosewood Pointe Web Form Name: lisa Email: monalisa_donald@yahoo.com Phone: 206-666-2591 Subject: inquiry Message: Hello, I wish to inquire booking availability in your home for a 14 Days Honeymoon surprise wedding package of my Godson which I was unable to attend because I am presently in the Gulf region. Check your availability of 14 days vacancy effect from august 10th 2007 to 24th 2007, Confirm availability and get back to me immediately with scheduled date; cost for the period, Security Deposit, Cleaning fees, Tax and any order major services to be rendered, all been totaled, for the couple alone,no pets, neither do they smoke.I will need to conclude this booking early enough ready for them to avoid any inconvenience during there stay.Bear in mind that I have Cashier\’s check made out for this transaction,is it okay to pay with it? Regards.

One-on-One with New Hampshire Vacation Rental Owner, Robin Clapp
Christine talks with successful vacation rental owner and rent by owner “purist,” Robin Clapp about why she bought her vacation home, what she enjoys about the process, and how’s she’s handled the unusually warm winter. For transcripts of the podcasts, as well as, tips and advice for second home owners, visit ownercommunity.homeaway.com. Have a question for Christine? Leave a message at (512)493-4340 and she’ll answer your question on the air.

Fraud from this email address: NWLF1122@aol.com
A person with the e-mail NWLF1122@aol.com has been contacting me and telling me that the check is in the mail. I charged only $400.00 but his check is for $3000.00. I told him that it is not available and that I am contacting the authorities, but he keeps e-mailing me. I have copies of all his e-mail. Please look into this person, his name is Gerry. Sometimes the messages say that they come from Italy or Central America. I want no part of a scam.

Ask Christine #2: Damage Insurance
This week, Christine answers a question from a Bodega Bay owner who wonders if there are any companies that provide damage insurance for vacation rental homes. For transcripts of the podcasts, as well as, tips and advice for second home owners, visit ownercommunity.homeaway.com. Have a question for Christine? Leave a message at (512)493-4340 and she’ll answer your question on the air.

Ask Christine #5: Requests for Multiple (But Not Complete) Weeks
This week, Christine answers a question from a North Myrtle Beach owner about how to handle requests for weeks that don’t fit into the typical Saturday to Saturday model. For transcripts of the podcasts, as well as, tips and advice for second home owners, visit ownercommunity.homeaway.com. Have a question for Christine? Leave a message at (512)493-4340 and she’ll answer your question on the air.

Update from a user who almost got duped by Iraq petty office scam
I just hope that no one is sucked in to thinking that just because it is a cashiers check from a bank or credit union, that it is legitimate. I actually called the bank that the check was drawn on and the first person told me that “a cashiers check is always good.” I then asked to speak to someone in the fraud department in the bank. I learned that if you deposit a phony check and then take money out of your account it is not covered by the bank so I was so glad I investigated the check. I also thought the email was very fishy. Anyway, I hope that we can get them shut down on this scam. Thanks! Dana

Buying a Vacation Home with Friends or Family: Part 2
Second part of Christine’s interview with co-ownership expert and attorney, Andy Sirkin. For transcripts of the podcasts, as well as, tips and advice for second home owners, visit ownercommunity.homeaway.com. Have a question for Christine? Leave a message at (512)493-4340 and she’ll answer your question on the air.

Ask Christine #1: Should You Buy a 3BR or 4BR House?
We’re introducing a new segment to the How to Rent Vacation Properties by Owner podcast series, “Ask Christine”. This week, Christine answers a question asked by a potential owner who wonders whether he should invest in a 3BR or a 4BR house on Lake Hartwell. For transcripts of the podcasts, as well as, tips and advice for second home owners, visit ownercommunity.homeaway.com. Have a question for Christine? Leave a message at (512)493-4340 and she’ll answer your question on the air.

Buying an Investment Property on the California Gold Coast
Christine talks with realtor, Meredith McKenzie about the California Gold Coast vacation home market. For transcripts of the podcasts, as well as, tips and advice for second home owners, visit ownercommunity.homeaway.com. Have a question for Christine? Leave a message at (512)493-4340 and she’ll answer your question on the air.

Ask Christine #4: What if Your Property Doesn’t Fit into the Break-Even Formula?
This week, Christine answers a question about buying a property that doesn’t work with standard the break-even formula. For transcripts of the podcasts, as well as, tips and advice for second home owners, visit ownercommunity.homeaway.com. Have a question for Christine? Leave a message at (512)493-4340 and she’ll answer your question on the air.

Fraud System Alerts and Reporting Update!
At VacationRentalDirect.com, we take all frauds and scams very seriously. They waste the time of the vacation rental owners and potentially put guests who wish to rent a vacation rental at risk of losing their deposits. To further limit fraud on our system we have implemented the following system checks: 1) No visitor can send more than 10 email inquiries per hour. We limit this by IP, Phone and Email. A spammer will have to get pretty creative now to bulk spam the vacation rental owners on this system. 2) Our system now flags all new listings placed from the UK and blocks all listings from Nigeria. Careful scrutiny is given to each new listing. 3) The creation of this fraud alerting system will allow our users and admins to report fraudulent emails and other scams as they occur. We’ve created an XML feed that vacation rental owners can use to monitor the latest frauds and scams as they occur. Thanks! Brent M. Kleinheksel Owner, VacationRentalDirect.com

UK Travel Agency Scam
This is a great example of potential fraud for VACATION RENTAL OWNERS. Many vacation rental owners will get inquiries from foreign travel agencies (mostly claiming to be from London)…they send you an email inquiry and then correspond with you just like a legit reservation. However, in the end they will ask you to charge an amount greater than the cost of the reservation and then ask you to reimburse them via a wire transfer, this is a complete scam!!! Here is a copy of the email that was just sent to me from one of these scammers: Email: Thanks for the mail,I am glad to tell you that I have just concluded discussing the payment arrangement with the clients and i will be making the full payment of $3,000 to you. This will confirm the booking fully. The names of the clients are, Name:——— Mr $ Mrs Graveney Henshaw Address:—— 93 COWLEY ROAD RICHMOND UPON THAMES,LONDON SW148QD,UK. Name:————Dr & Mrs CLIVE E ADAMS Address:——- 20 BARKER ROAD,MIDDLESBROUGH TS5 5ES,UK. However, I am going to send you the Credit Card Information that will cover the cost of their accommodation, and the necessary arrangement for the clients. Moreover, I was able to make an arrangement with a traveling pre-paid car hiring agent who will supply the clients with cars and other necessary things they will use through out their stay with you. So in order not to share the credit card information with a third party, I have decided that only one person will have to handle the credit card information. So once you are on receipt of it, you are required to charge the credit card,confirm the amount of ($10,000), in your account then deduct the cost of your services ($3,000) and kindly send ($7,000) to the agent via SWIFT WIRE TRANSFER. Confirm this message and provide me with; (1) YOUR FULL NAME (2) FULL CONTACT ADDRESS (3) PHONE NUMBERS for office record. Please! remember that the integrity of our agency is involved, so this business requires prompt response. I also hope the stay of the clients will be made comfortable. Kind Regards Mark Lubin. Lubin Travels Ltd. 67 BRAMPTON ROAD BRENT, LONDON NW9 9DE,United Kingdom. Phone 011-44-703-192-4099

Buying an Investment Property in Provincetown, MA
Christine talks with realtor, Rick Tourgee about the vacation rental market in Provincetown. For transcripts of the podcasts, as well as, tips and advice for second home owners, visit ownercommunity.homeaway.com. Have a question for Christine? Leave a message at (512)493-4340 and she’ll answer your question on the air.

How to Choose a Property Manager
Christine talks with Orlando property manager, Steve Trover about how to find a good property manager. For transcripts of the podcasts, as well as, tips and advice for second home owners, visit ownercommunity.homeaway.com. Have a question for Christine? Leave a message at (512)493-4340 and she’ll answer your question on the air.

One-on-One with New Hampshire Vacation Rental Owner, Robin Clapp
Christine talks with successful vacation rental owner and rent by owner “purist,” Robin Clapp about why she bought her vacation home, what she enjoys about the process, and how’s she’s handled the unusually warm winter. For transcripts of the podcasts, as well as, tips and advice for second home owners, visit ownercommunity.homeaway.com. Have a question for Christine? Leave a message at (512)493-4340 and she’ll answer your question on the air.

Buying an Investment Property in Montana
Christine talks with realtor, Dorothea about the Montana vacation home market. For transcripts of the podcasts, as well as, tips and advice for second home owners, visit ownercommunity.homeaway.com. Have a question for Christine? Leave a message at (512)493-4340 and she’ll answer your question on the air.

Scam from Coker Olaitan
Name: Coker Olaitan Email: balshaminfo2k@yahoo.com Phone: Start Date: // End Date: // Number of Adults: Comments: Dear Sir, I saw your property for rent and i will like to let you know that i will like to rent the place for just 2 months starting from August 1st to September 30th which i will like to know if the period is available or you can let me kno your avialable period. I will like like to inform you that i will like to pay by International Money Order Issued by Money Gram from US Bank or American Express Traveler’s Check issue by American Bank. I will like to know if my method of payment is acceptable. I will like you to get back to me through my email (balshaminfo2k@yahoo.com ) as soon as possible. Thanks, Coker Olaitan

Another UK Fraud Fraud Alert
Here is a copy of the email I got today: From: monalisa_donald@yahoo.com [mailto:monalisa_donald@yahoo.com] Sent: Monday, July 23, 2007 5:12 AM To: rentals@rosewoodpointe.com Subject: Rosewood Pointe Web Form Name: lisa Email: monalisa_donald@yahoo.com Phone: 206-666-2591 Subject: inquiry Message: Hello, I wish to inquire booking availability in your home for a 14 Days Honeymoon surprise wedding package of my Godson which I was unable to attend because I am presently in the Gulf region. Check your availability of 14 days vacancy effect from august 10th 2007 to 24th 2007, Confirm availability and get back to me immediately with scheduled date; cost for the period, Security Deposit, Cleaning fees, Tax and any order major services to be rendered, all been totaled, for the couple alone,no pets, neither do they smoke.I will need to conclude this booking early enough ready for them to avoid any inconvenience during there stay.Bear in mind that I have Cashier\’s check made out for this transaction,is it okay to pay with it? Regards.

Ask Christine #2: Damage Insurance
This week, Christine answers a question from a Bodega Bay owner who wonders if there are any companies that provide damage insurance for vacation rental homes. For transcripts of the podcasts, as well as, tips and advice for second home owners, visit ownercommunity.homeaway.com. Have a question for Christine? Leave a message at (512)493-4340 and she’ll answer your question on the air.

Ask Christine #5: Requests for Multiple (But Not Complete) Weeks
This week, Christine answers a question from a North Myrtle Beach owner about how to handle requests for weeks that don’t fit into the typical Saturday to Saturday model. For transcripts of the podcasts, as well as, tips and advice for second home owners, visit ownercommunity.homeaway.com. Have a question for Christine? Leave a message at (512)493-4340 and she’ll answer your question on the air.