How to Avoid Rental Scams in Your Furnished Housing Properties

corporate housing scams

No one likes admitting when they have been scammed, and even more so when that scam has led to serious financial losses. Rental scams are the worst of these scenarios because there are so many ways that you might avoid them. Yet, when an individual or even an organization does manage to obtain furnished housing rentals from you, and then proves to be a scam, you might wish to pretend it never happened and move on. Is that a good idea? In a word: No. Instead, it’s a great idea to share details about any rental scams with others, and help improve the whole furnished housing industry for the many investors out there.

Below are some of our biggest tips for identifying rental scams and avoiding the culprits. We share them because we have experienced many ourselves, as you can read about in this previous article, and others.

Corporate Housing Scams

Red Flags

Here are the biggest and easiest to spot of the proverbial “red flags” that indicate your furnished housing is being targeted by a scammer:

They don’t complete the rental application – No blanks allowed should be your new motto. And even if the “name” given is a corporation, don’t just accept it. Do the research and find out all that you can, including full details about the individual actually seeking their “corporate” housing. This also applies if someone refuses to submit the rental credit application. It could be that they have a history of scams, really horrible credit or are unable to actually afford the rental. If someone refuses the credit check…refuse the application.

Incomplete data – The forms may seem to be complete, but don’t overlook a very common scam, which is to leave numbers (social security, credit card and phone numbers to be precise) incomplete. You can also ask for copies of documents like a driver’s license if you fear that an identity might not be all that authentic.

They’re in a hurry – They want that property of yours and they want it yesterday! This is one of the best types of rental scams because it forces you to rush into the deal, and these are often deals that end up costing you. Take your time, no matter what amount is at stake.

Differing stories – Have you gotten mixed messages from someone or some firm seeking your furnished housing? Maybe one person has spoken with you and someone who helps you at your business? Maybe you’ve gotten someone who wants nothing on paper or written down (i.e. all kinds of verbal agreements)? Maybe they tell you one thing during their first call and something else during another? If a story changes, even a little, it is probably scam related.

Cash offers – Finally, we once covered the issue of cash offers as rental scams. This too is a major red flag to be avoided.

Now you have some of our most recognizable scams and can dodge the worst offenders out there.

CHBO Annual Report Review: Property Locations and Number of Properties

The results are in, so let’s dig deeper. Each week CHBO will analyze data from the annual corporate housing report and open a discussion. Please provide feedback with your experiences in 2017. This week we discuss CHBO Property Locations.

CHBO Property Locations

We received hundreds of survey responses from property owners and real estate managers across the UnitedCHBO rental locations
States including 43 states and the District of Columbia.
Similar to last year, the top U.S. states for responses​ were:

1. California: 27% (up 6% from 2016)
2. Colorado: 15% (up 2% from 2016)
3. Texas: 10% (up 2% from 2016)
4. Washington: 5% (down 3% from 2016)
5. Georgia: 4% (down 2% from 2016)
6. Oregon and Illinois 4%

Number of Properties

46% of respondents say they have one rental property, tying the highest response we have had two years in a row. 37% report they have two to five properties (up from 35% in 2016). Perhaps the most interesting trend​ to note is that over the last six years, the property ownership numbers have generally stayed the same. (The one exception was in 2011 when we saw a 6% increase in property owners with one rental unit.We believe that may have been due to
the number of “accidental landlords” who entered the market at that
time, due to the economy.)

Given that more than eight in 10 survey respondents​ say they only have one to five rental units, the responses in this annual report truly reflect the independent corporate housing real estate segment.

Total properties Owned

1. Where are you’re properties located?

2. Are the properties located in the top cities reported by the CHBO community?

3. How many total properties do you manage?

Comment below or share this post with your response.

To learn more about this topic and other results, view the CHBO annual report.

To view Historical Reports, visit here.

Corporate Housing By Owner Has Completed Its 9th Annual Corporate Housing Real Estate Survey

Press Release CHBO

The Corporate Housing Real Estate survey results indicate the trends, standards and the need for a monthly furnished lodging solution. The annual Corporate Housing report is now available for view or download.

Denver, CO, June 27, 2018 –(PR(dot)com)– Corporate Housing By Owner (CHBO), has recently completed its 9th annual Corporate Housing Real Estate survey, thanks to the largest number of contributors in its history. Participants included property owners with a single property, those with multiple properties and management companies. The survey was open to anyone who owned or managed a furnished, monthly residential rental in 2017 – not just to CHBO users. This diversity of input provides an excellent overview of this market which is significantly different from the short term vacation segment. Indicative of this, 60 percent of respondents indicated average stays were 3 months or longer. To get a better sense of where this market is headed and what opportunities it affords, CHBO urges a careful look at the survey results.

According to The Corporate Housing Providers Association (CHPA), “In 2017, the US corporate housing industry reported its fifth consecutive year of room revenue growth, hitting a new peak at $3.62 billion. In 2017, the 12.9% gain in revenues over 2016 was the fastest increase since 2011. This is comparable to the corresponding growth in extended-stay hotel revenues and far greater than the overall US hotel average 5% in 2017. For the fifth successive year, the supply of US corporate housing units increased. Average daily rate (ADR) rose 7.1% in 2017, more than tripling the growth in overall hotel ADR, according to STR, the premier company providing statistics on the lodging industry.”

Rental Success Starts with Understanding Data and Trends

A glimpse of the 2017 survey results indicates that new owners continue to enter the market, over 90 percent manage their own properties, over 44% are looking to buy new properties, larger homes have shown the biggest increases in rents, 60 percent of owners are renting without previewing the property. Amplification of these trends and many others, revealed in the survey, can provide valuable knowledge on how to navigate the corporate housing market in the future. The full report can be viewed and downloaded here

CHBO thanks everyone who took the time to complete the survey questions. The survey results give you an insight on the private owner segment of the corporate housing industry.

About Corporate Housing by Owner (CHBO)