One key way to ensure you keep good tenants for a long time is to not forget they are your customers.  Taking care of issues quickly and to their satisfaction is important.  Give them good customer service and they will stay longer and refer you to friends who may be looking for a place to live.

Article and video below.

Rental rip-offs suspect faces judge, new victim talks
Reported by: Jesse Chavez

WEST PALM BEACH, FL — He’s the suspected ring leader in what authorities call one of the biggest mortgage fraud cases in Palm Beach County history.

Carl Heflin faced a judge on a day when another one of his alleged victims came forward.

"Court is now in session. The honorable judge Ted Boors presiding," said a bailiff.

Heflin, a former West Palm Beach cop, is now on the wrong side of the law.

In court this morning, he faced 30 counts of fraud, burglary and grand theft.

Sheriff’s detectives arrested Heflin yesterday, saying he submitted fake warranty deed forms.

Heflin reportedly claimed he owned 20 homes in the Westgate and Belvedere areas of West Palm Beach.

Julio Elvir learned from us that Heflin claimed to own and live in a house on 2328 Beech Road.

Elvir and the bank are the actual owners.

"Oh! I’m surprised because I never expected something like this," said Elvir. "I thought the bank had already taken possession of the property. But, last July, I went there and noticed two men living there."

Two weeks ago, we caught the suspected scammers, Heflin’s associates, on camera, trying to rent a home they did not own.

It’s located on Wabasso and Oswego.

"I’m the landlord," said one of the men who did not give his name.

"We’re the property managers," said a female associate. "

"Why are you asking me questions?" ask the man.

"Because I’m a reporter," said NewsChannel 5′s Jesse Chavez. "That’s what I do for a living."

One of the associates is George Chambers.

He claimed to be renting Elvir’s house from Heflin since last July.

You can hear dogs barking inside, even though it’s supposed to be empty.

"It’s the first time this has happened to me," said Elvir. "I’m happy to hear that he has been captured. What he was doing was wrong."

A neighbor says a woman, possibly Heflin’s wife, still lives in the home… at least for the time being.

     I’m not sure of the details of each scam but I am sure there were red flags that would have tipped off the potential tenants of what was happening. 

     Strange part is, he is being charged with submitting fake warranty claims on the properties.  I’ll bet if he just stuck to ripping off people he would have been in "business" much longer.

Article and video below.

Fake landlord suspected of scamming 30 renters
Reported by: Jesse Chavez

WEST PALM BEACH, FL — NewsChannel 5 cameras rolled when a would-be tenant confronted her alleged scammers.

Now, the suspected mastermind of a huge rental rip-off is behind bars.

The former officer is now facing 30 criminal charges.

NewsChannel 5′s Jesse Chavez was the first reporter to investigate what authorities now call one of the largest mortgage fraud schemes in Palm Beach County history.

"Who owns this property right here?" asked multi-media journalist Jesse Chavez.

"Who are you?" asked a man who claimed to be a homeowner.

"It don’t make no difference," said an associate.

"How about we just call the sheriff’s department and I’m telling you, get that camera out of my face," said another man who was confronted by us.

Our cameras were rolling two weeks ago, when a group agreed to meet a woman at a home on Wabasso and Oswego.

She had offered to give them $800 to rent it.

"Are you really the landlord then?" asked multi-media journalist Jesse Chavez.

"I own this property," said one man.

"No, we’re property managers," said the woman.

"No, I own it," replied the man. "I could do what I choose to do with it."

It turns out, the group works for former West Palm Beach police officer, Carl Heflin.

None of them own the house in question or any others involved in the alleged scheme.

Heflin was arrested this morning and charged with submitting 20 fake warranty deed forms claiming he owned homes in the Westgate and Belvedere areas of West Palm Beach.

"All the properties are in some sort of foreclosure," said Detective Michael Antinoro of the Palm Beach County Sheriff’s Office. "Some of the people are still trying to work it out to pay the payments and some of people just walked away from the property. They’re still technically owned by the person."

Leslie Walker is one of the renters looking for justice.

After paying rent, she even moved into this home before the real owner called the sheriff’s office and had her removed.

"It’s not right, what he’s done," said alleged victim Leslie Walker. "He’s hurt a lot of people and he doesn’t care. He didn’t care what he did."

Walker says she’s now homeless, broke and embarrassed about what happened.

"I’m snake bitten by it, the whole thing. Shocked, angry, victimized is what I am," said Walker.

Heflin is charged with 30 counts of fraud, burglary and grand theft.

Detectives have not charge his associates, but that may change in light of what we caught on camera.

"Listen carefully, back the hell up with your cameras and move on," said the man who claimed to own the house.

"Well if you’ve got nothing to hide, then what’s the problem?" replied multi-media journalist Jesse Chavez.

"This is mine and if you don’t like it, that’s too bad," said the man.

Detectives say the investigation is not complete and others may be charged in the future.

I read the article then saw Shaun over at Shaun’s Real Estate Adventures  wrote about it.  I added my comment to it and am waiting for it to get moderated.  I am definitely in the minority in my thinking over there that you home is a bad investment.  Actually, I feel your home isn’t an investment at all.  Real Estate is a good investment.  Home, that’s where the heart it.  It has nothing to do with investments.  Anyway, the article quote is below.

There’s the usual talk about what the latest Case-Shiller house price data mean for the next short term move in the real estate market. Has housing bottomed? If not, has the rate of decline slowed? And when will we see an upturn?

Human nature likes the short term. Which is why so little attention is paid to something that is probably more important, if less urgent: What the latest data show about the long-term of the real estate market.

And it’s startling.

We have just been through the biggest boom in real estate in American history. The subsequent bust surely hasn’t finished.

Dropping home prices are only one of the factors that keep the annual returns on homes low.

Yet look at the numbers. Since 1987, when the Case-Shiller index of 10 major cities begins, it’s risen from an index value of 63 to 151. Annual return: Just 4.1% a year. During that period, according to the Bureau of Labor Statistics, consumer prices rose by 3% a year. Net result: Home prices produced a real return of just 1.15% a year over inflation over that time.

Critics may point out that the analysis is unfair — after all, it starts counting near the peak of the 1980s housing boom. Fair enough. Look at the performance since, say, early 1994, when home prices were near a historic trough. Surely someone who bought then has made a bundle.

Not necessarily. Since then the ten-city index has risen from a value of 76 to 151. Annual return: 4.7%. Inflation over that period: 2.5%. That’s still only a real return of 2.2% a year above inflation.

You can often do better on long-term inflation protected government bonds.

And real estate often costs 2% or more a year in property taxes, condo fees, maintenance, insurance and the like.

Conventional wisdom long held that home ownership was a route to wealth, and the imputed rent — in other words, the right to live in your home — was just part of the value you got from it. Under that widespread view, the recent housing bust was simply a temporary, though deep, pothole.

Yet for very many people, even over the past 15 or 20 years, the imputed rent may have been all, or nearly all, the real value they actually got from their home.

Yes, it’s only recent data. And it’s only ten cities. But there’s some reason to suspect these numbers may, if anything, flatter real estate performance. After all, it’s hard to look at the data and figure the bust is now over. And if they fall further, those long-term return figures will fall too.

Prices weren’t just down 19% over the past year. They fell 2% just between February and March. And it’s not the worst-hit markets that worry me the most — Phoenix is down 53% from its peak, Miami 47%. That smells of capitulation. It’s the other markets. New York and Boston are only down 20%. Denver’s only down 14%.

Overall the ten- and 20-city Case-Shiller indices are merely back to mid-2003 levels. After the biggest boom and bust on record, history suggests things don’t stop getting worse until they’ve gotten a lot worse than that.

While I am a landlord, I am a citizen and see both sides of the equation here.  With the economy in a tailspin we have set the stage for scams to be rampant.  The increase in foreclosures has forced both homeowners and tenants out into the street.  Most appear with a sense of urgency and will need a place fast.  This urgency can cause people to cut corners or to rush through things and not pay attention to the details.  This is a scam artist’s dream.  They can prey on the urgency and need to bilk people out of their hard earned, and much needed, money.

I’ve compiled a list of some scams, both landlord and tenant scams, for us all to keep an eye on.

Non-Owner Scam:
Non-owner showing a property.  These guys got the keys to a place one way or anotehr and are looking to rent it out.  They will rent the same place out to multiple people and collect security deposits, first and last months rents from all the "tenants".  this usually ends with no one’s lease being valid and everyone out their money.

This can be accomplished a couple ways.

• Renting with the intent of renting to others. This scam works just how it sounds. A scam artist rents a property so they can show it to other prospective renters. They will collect first and last month’s rent, security deposits and any fees or charges they can squeeze out of their victims before skipping town with the loot. There have been reports of a single property being leased or rented to dozens of people before the crook vanished with their money.
• Renting on behalf of the owner. This scam is similar to the previous one but there’s one major difference: the scam artist claims to be helping someone else rent the property. They might be sick, or overseas, or just too busy to do it themselves for whatever reason. Once the scammer collects first, last, deposits and fees they skip town. The renter then discovers the home wasn’t for rent. The owners or renters may have been away for business or pleasure, or it’s a vacation home, or it could be a foreclosed property. Either way you’re out the money if you fall for it.
• Let and run scam.  In this scam the perpetrator poses as someone interested in renting a property. they will come and view the property once with the owner or manager.  they will then stop by and ask to see the place again, usually trying to get the manager or owner to agree to allow them to view the place alone or very quickly.  Once hey get the key from the owner they will have a copy made and return it.  If the landlord checks out the property everything seems fine.  The "prospective tenant" will then perform one of the above scams.

In these scams, there are really two victims.  First, the landlord now has squatters in their property and, second, the tenants have an illegal tenancy and will face eviction.

Ad Copying:
Here a scammer will copy a Craigslist ad or other rental ad exactly.  They will then post this ad, many times pictures and all, and just change the rent amount and contact information.  Here everything looks good.  If you drive by the property you may even see a "For Rent" sign in front.  Neighbors will know it is for rent, etc.  This scam plays on the "too good to be true" emotion.  If all properties are renting for around $900 and the one you are looking at is great and also $700, something is wrong.  This is most likely the start to one of the above mentioned scams.

Identity Theft:
In today’s online world it may seem Ok to handle things electronically.  Maybe even an application to rent a property.  Remember folks, you are giving out your personal information here.  Think identity theft.  Some scammers aren’t necessarily looking to rip you off now.  Some may just want your personal information.  These people will most likely try to keep everything over the phone or the Internet.  They will try to get you to fill out an application and give them personal information.  Here they are mainly looking to steal your identity.  You may not even realize you were scammed until it is too late.  Follow some good advice.  Never give out your personal information over the phone…or the Internet.

Nigerian type Scams:
This tried and true scam has now made it’s way into the hearts of all areas of business.  This scam preys to both tenants and landlords.  There are two main variants for each.

• With landlords it is generally a tenant coming into the country.  The prospective tenant will send a cashier’s check to you.  "Accidentally" they will have sent too much and they want you to wire them the difference back, keeping a little bit for your won trouble of course.  Once you wire the money to them they will have it and you will find out the check has bounced.  Remember, it can take a couple weeks before the bank knows that the check has bounced.  Once it does they will come after you for the money.  Either way, you will be out the money you wired to them.
• For tenants, it is different.  It is a play on the Ad Copying Scam above.  Generally you will never meet this person but they have a great place for rent.  They will try to conduct all business over the phone and via the Internet.  Once they have your money they will disappear. 

Things to watch out for:

• If it is too good to be true run, don’t walk.
• Cash only up front
• Overpayment then asking for a refund
• Offering you something that doesn’t pass the smell test, like the “homeboy hookup” in the video below.

Safe practices:

• Deal locally with people you can meet in person.
• Avoid deals involving shipping or escrow services, and be wary of a transaction “guarantee.”
• Never give out your financial information and definitely do not wire funds.
• Ask plenty of "qualifying" questions.
• Verify owners of property at the tax board.
• Ask the landlord if you can see their ID.
• If a property management company is managing the condo, home or community, call them and ask whether the person you’re dealing with actually owns the property.
• Considering how many homes are being foreclosed, don’t be afraid to ask if the landlord is current on their mortgage payments.
• Ask potential tenants for references and follow up by checking them.
• Change the locks frequently if you rent the property often. If your previous tenants kept a copy of the keys, they have access to the home!
• Verify your tenant’s employment by contacting their employer.
• Run a credit check on potential tenants before renting to them.
• Don’t let a tenant pay more than you asked for then demand a refund. If you give it to them, you’re out the money.

Sorry for the long post.  It ended up being a lot of information to put here. 

Check out the video below.  The original story is here: 

[See post to watch Flash video]

Below you will see an interesting news article, along with a video about a tenant who died during his lease and the landlord’s response.

Fort Lauderdale Landlord Emulates Scrooge In Demanding Rent From Dead Man

Fort Lauderdale, FL (AHN) – Florida’s overbuilt and slow real estate market has left the state over loaded with a huge inventory of homes, condos and apartments that don’t sell or rent. That might explain why one South Florida landlord is seeking rent from a dead man, claiming that he is owed three months rent because the tenant failed to give 60 days notice before dropping dead of an unexpected heart attack.

Fort Lauderdale landlord Alan Statsky claims he is owed the money for the apartment at Sun Harbour Yearly Residences that Art Zissen left vacant after dying there of a heart attack on Sept. 22.

"Part of the contract says if you abandon your lease and you don’t pay on your lease that we have a right to collect your security deposit," property manager Alan Statsky was quoted as saying by Local 10 news.

But it’s not just the dead man’s security deposit. In a move that could have been a scene in novelist Charles Dickens’ "A Christmas Carol" by character Ebenezer Scrooge, Statsky wants rent for October, November and December for the vacant apartment too. And since Art Zissen is dead, Statsky sent his relatives a bill for three months of rent.

Although it’s up to a Broward County judge to interpret the lease in January, a lawyer says the lease died when Zissen did leaving Statsky without any contract to enforce.

"This landlord’s ability to collect rent came to an end when Mr. Zissen died," Russell White, an attorney for Zissen’s family, was quoted as saying by Local 10 news. He added, "That landlord, in my view, is trying to take advantage of the situation to extract money. It looks to me that it’s motivated on pure greed."

Zissen’s brother notified the apartment management company on Sept. 24 that his brother had died, then cleaned out the apartment and did a walk through with apartment managers on Oct. 5.

While I can understand the man’s estate being responsible for the remainder of the lease I would expect the death to remove the need for notice.  Is it really abandonment?  It seems like the bother was trying to do the right thing.  This just reminds me of something Bill Maher said when interviewing Elizabeth Warren.  They were discussing the recently passed Credit Card legislation and Bill said that it was needed because we just don’t treat each other very well.  This is another example of that.  I can see legislation being formed because one guy wants to rip off another one here.

     As a normal course of business I keep an eye on the competition.  I look at what they are offering, the rents they are charging, what they charge, if anything, for background checks, etc.  I want to make sure my business is in line with the market.  Business 101.

     During my perusal of Craigslist ads this morning I read one that is for $50.00 higher than I am offering.  This property offers a deck in the rear of the property and a garage.  OK, sounds reasonable.  As I read through the ad I see all my descriptive keywords.  Spacious, beautiful, updated, oak, expanded, you get the idea.  As I read this ad I am thinking that it’s just my ad reworded to talk about another property.  Even the line for the background check was taken verbatim, except they charge $5.00 more. 

     I should be flattered.  I am this person’s mentor and he/she doesn’t even know it.

The tenants gave notice they were moving and left at the end of February.  I had 1 day of showings for the property where I had 3 prospective groups come through.  Of those 1 wanted to "cut a deal" to do work for reduced rent.  He had a valid business but I’d be breaking my own rules to accept work done for reduced rent.  Especially since his landlord reference was also his boss, who was also his Uncle.  You can see where all the eggs are in one basket and that basket is biased.

The second and third sets of prospective tenants were nice but each had their own issues that caused me to reject them.  I can deal with low credit scores but when someone goes below 525 I just think "Wow".  In addition to the low scores both of these groups had addresses that didn’t match up to the credit reports.  Lastly, one of the applicants from the groups was someone who was 40+ and the only thing on his credit report, at all, was 1 parking ticket which was not paid.  There were’t even any inquiries for credit listed on the report at all.  The addresses he provided didn’t match to his credit report, just too much which seemed off.

The hunt continues for a good quality tenant.

No, I don't have an eviction and I didn't try a self-help eviction.  

The article below is another reason to show that you need to know the laws regarding your business. 

Self help evictions are illegal in most areas of this country.  This guy learned the hard way that he should have just taken the woman to court and had her evicted legally.

SPRING VALLEY, N.Y. (AP) — A New York landlord was fined nearly $10,000 for removing the toilet and other fixtures from a basement apartment to get his tenant to move out.
The Rockland Board of Health issued the fine to Fausto Pinos on Wednesday. He had been charged with 24 housing code violations for conditions in the building in Spring Valley, a town north of New York City.
"The people living there were subjected to appalling conditions that were not fit for human habitation," said Dr. Jeffrey Oppenheim, the health board's president. "It was just disgusting."
Pinos, of Bushkill, Pa., did not appear at the meeting, but his brother, Jesus Pinos, speaking on his behalf, said the landlord did not dispute the charges. He said Pinos thought that removing the toilet, bathtub, sink, oven and countertop would force the woman and her child to move.
County officials had been tipped off to problems in the apartment in early November by an agency that was trying to help the woman. Inspectors found numerous health and safety violations, including a roach infestation and sewage in the bathtub.
The Department of Health issued emergency violations letters to Fausto Pinos on Nov. 5, according to records. When inspectors visited the apartment again Nov. 17, they discovered that the toilet and other fixtures had been removed.
The tenant told inspectors that Pinos removed the items the day before and told her to leave. But she said she had no other place to go.
The Department of Social Services helped relocate the woman and her child.

Here is a link to the article. 

AKRON, Ohio – Mortgage finance company Fannie Mae said it is forgiving the mortgage debt of a 90-year-old woman who shot herself in the chest as sheriff’s deputies attempted to evict her.

Addie Polk’s plight was cited by Rep. Dennis Kucinich, D-Ohio, on Friday before the House voted to approve the $700 billion financial rescue package. Kucinich voted against the plan.

Fannie Mae announced later Friday that it would dismiss its foreclosure action, forgive Polk’s mortgage and allow her to return to the Akron home where she’s lived since 1970.

“Just given the circumstances, we think it’s appropriate,” Fannie Mae spokesman Brian Faith said, citing Kucinich’s statement and news reports. “It certainly made our radar screen.”

Polk remained in Akron General Medical Center and was expected to recover from chest wounds suffered last week.

She became the home’s sole owner in 1995 when her husband died, then took out a mortgage loan in 1997 and refinanced several times, court and property records show.

Countrywide Home Loans filed for foreclosure last year, and Polk’s home was sold to Fannie Mae at a sheriff’s auction in June. Deputies were to escort Polk from her home Wednesday when gunshots were heard inside.

Polk’s longtime neighbor, Robert Dillon, climbed through her window and found her lying in bed bleeding with a gun next to her. He visited Polk in the hospital on Friday.

“She said it was a crazy thing to do, now that she’s had time to think about it,” Dillon said.

http://www.philly.com/philly/hp/news_update/20081005_ap_mortgageforgivenforwoman90whoshotherself.html