{"id":5336,"date":"2023-07-29T11:07:25","date_gmt":"2023-07-29T15:07:25","guid":{"rendered":"https:\/\/propertyonion.com\/education\/?p=5336"},"modified":"2023-07-29T11:07:56","modified_gmt":"2023-07-29T15:07:56","slug":"scam-that-targets-airbnb-hosts","status":"publish","type":"post","link":"https:\/\/propertyonion.com\/education\/scam-that-targets-airbnb-hosts\/","title":{"rendered":"Scam That Targets Airbnb Hosts &#8211; Watch Out!"},"content":{"rendered":"\n<p>Airbnb has helped property owners make money by renting rooms and units. The company\u2019s recent expansion into experiences provides homeowners with additional income streams. You can give guided tours of your city, lead morning yoga sessions, and create other experiences for your guests and people in the area.<\/p>\n\n\n\n<p>Airbnb is a great resource for making extra income, and some people turn Airbnb into a full-time career. However, the success of this app has attracted <a href=\"https:\/\/propertyonion.com\/education\/desperate-tenants-busted-in-scam-to-sell-house-they-are-squatting-in\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"many scammers (opens in a new tab)\">many scammers<\/a>. While scammers shouldn\u2019t keep you away from platforms like Airbnb, it\u2019s important to know the red flags and how these scammers work, so you can stay safe.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>Airbnb investors should periodically check their credit reports and monitor their finances for suspicious activity.<\/p><\/blockquote>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">In this Article:<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/propertyonion.com\/education\/scam-that-targets-airbnb-hosts\/#The_Latest_Scam_Involves_Identity_Theft\" >The Latest Scam Involves Identity Theft<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/propertyonion.com\/education\/scam-that-targets-airbnb-hosts\/#How_to_Keep_Yourself_Safe_from_This_Scam\" >How to Keep Yourself Safe from This Scam<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/propertyonion.com\/education\/scam-that-targets-airbnb-hosts\/#Finding_Profitable_Airbnb_Properties\" >Finding Profitable Airbnb Properties<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Latest_Scam_Involves_Identity_Theft\"><\/span>The Latest Scam Involves Identity Theft<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><a href=\"https:\/\/propertyonion.com\/education\/is-now-the-time-to-invest-in-micro-apartments\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Airbnb investors make money from renting their units and rooms (opens in a new tab)\">Airbnb investors make money from renting their units and rooms<\/a>. They expect to collect rent from guests, but some guests burn the investors. If you aren\u2019t careful, a criminal can steal your identity and use it to take out a mortgage loan while pretending to be you. Then, they attempt to run off without a trace.<\/p>\n\n\n\n<p>Investigators with the Toronto Police Service (TPS)&nbsp;<a href=\"https:\/\/nowtoronto.com\/news\/toronto-man-facing-charges-after-allegedly-impersonating-airbnb-owners-in-mortgage-fraud-scam\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">caught a criminal performing this scheme<\/a>, and investigators believe that he is part of a larger syndicate. Criminals have been using Airbnb to get into people\u2019s homes and accelerate the process. Once inside, these criminals have the home to themselves and can search desks, cabinets, and bedrooms for any form of identification.<\/p>\n\n\n\n<p>A credit card bill, mortgage statement, cell phone bill, bank account statement, or Social Security card gives them the information they need. Criminals engaging in identity theft know what documents they need and can search through the home without anyone stopping them. They can use a real document to forge passports, driver\u2019s licenses, and other critical ID documents.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Keep_Yourself_Safe_from_This_Scam\"><\/span>How to Keep Yourself Safe from This Scam<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>This scam sounds scary and rightfully so. The criminal that investigators caught had five counts of fraud over $5,000 and tried to run off with $2.5 million after taking out loans against the victims\u2019&nbsp;homes. However, on the surface, it looks like few homes were impacted. Most Airbnb hosts don\u2019t become identity theft victims and still generate cash flow from their properties and rooms.&nbsp;<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>It\u2019s important to stay alert of how scammers dupe their victims, but a few bad actors shouldn\u2019t intimidate you from pursuing a lucrative opportunity. <\/p><\/blockquote>\n\n\n\n<p>However, it is important to take all <a href=\"https:\/\/propertyonion.com\/education\/watch-out-for-these-florida-real-estate-scams\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"scams (opens in a new tab)\">scams<\/a> seriously, especially considering the ramifications of becoming a victim. Criminals utilizing this strategy must find physical copies of documents that they can use for identification purposes, such as account statements. If the property does not have any information about your identity, you are safe from this scam. Investors can comfortably expand their Airbnb portfolios and accommodate guests if important mail gets sent to another address.<\/p>\n\n\n\n<p>If you only own your primary residence and rent a single room or your home for a few days, you have to be protective of important documents. Storing them in a hard-to-find location isn\u2019t the best approach, as criminals will spend several days looking for the information. Scammers using this strategy don\u2019t care about getting out of your house and touring the area. They only have one goal in mind. You can lock your personal information in a safe or cabinet, but some criminals can open those. Granted, if a criminal does break into a safe or cabinet, it\u2019s easier to tell.<\/p>\n\n\n\n<p>Receiving electronic bills and account statements minimizes the paper trail and makes it less likely that a scammer steals your identity. You can also check a guest\u2019s history and social media profiles before letting them into your home. While this strategy can work, some criminals know how to deceive hosts with good social media profiles and a history of good stays at <a href=\"https:\/\/propertyonion.com\/education\/how-to-spot-a-rental-scam\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"other Airbnb rentals (opens in a new tab)\">other Airbnb rentals<\/a>. If there are no paper documents available, and none get mailed to the rental property\u2019s address, you put yourself in a good position to avoid this scam.<\/p>\n\n\n\n<p>Airbnb investors should periodically check their credit reports and monitor their finances for suspicious activity. It took several months for some victims to notice the criminals took out mortgages on their behalf. If you check your finances more frequently, you can respond to suspicious activity quicker, temporarily freeze your accounts, and contact the authorities.<\/p>\n\n\n\n<p>Homeowners can also get title insurance, a policy that financially safeguards them from mortgage fraud. You can file a claim with your insurance company if you become the victim of this scam. You may never end up using title insurance if you follow protective measures, but an insurance policy is an extra line of defense.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Finding_Profitable_Airbnb_Properties\"><\/span>Finding Profitable Airbnb Properties<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It\u2019s important to stay alert of how scammers dupe their victims, but a few bad actors shouldn\u2019t intimidate you from pursuing a lucrative opportunity. Some Airbnb hosts make six figures every year with their rental units.&nbsp;<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>Airbnb investors should start small and scale their way up. Once you have a steady stream of guests covering the mortgage payments, it\u2019s easier to acquire another property and expand.<\/p><\/blockquote>\n\n\n\n<p>Investors should start by setting budgets, so they don\u2019t look for properties they cannot afford. Once you establish a reasonable budget, you should look for locations experiencing steady population growth. As more people occupy the same area, rent and housing prices go up. You can find a reasonably-priced home in your area to get started, but savvy investors expand their horizons and look for properties near cities. Airbnb investors must consider how much demand they can get from tourists since the platform specializes in short-term rentals.<\/p>\n\n\n\n<p>Investors can use Property Onion\u2019s&nbsp;<a href=\"https:\/\/propertyonion.com\/property_search\/Miami-Dade-County\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">property search<\/a>&nbsp;if they want to buy properties near or in Miami. The city experienced 1.7% year-over-year population growth in 2022,&nbsp;<a href=\"https:\/\/www.thenextmiami.com\/miami-population-grew-1-7-last-year-fourth-fastest-among-big-cities\/#:~:text=Miami&#039;s%20population%20increased%201.7%25%20between,449,514%20on%20July%201,%202022.\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">making it the fourth fastest-growing city<\/a>&nbsp;among the 50 biggest U.S. cities.&nbsp;<\/p>\n\n\n\n<p>Investors must then analyze properties and choose which property makes sense for their objectives. Airbnb investors should focus on a property\u2019s potential returns. A big city lets you access a large market, but the barrier to entry (i.e., high prices) can limit your returns on Airbnb investments. Some investors buy properties in areas just outside of the city to lower their costs and potentially achieve higher returns.<\/p>\n\n\n\n<p>Airbnb investors should start small and scale their way up. Once you have a steady stream of guests covering the mortgage payments, it\u2019s easier to acquire another property and expand. Real estate investors use leverage to build up their portfolios. Eventually, you will pay off the mortgages on your properties and reap higher cash flow. The real estate investing model still works wonders, and a few bad actors in the industry shouldn\u2019t scare you away from a compelling opportunity.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Airbnb has helped property owners make money by renting rooms and units. The company\u2019s recent expansion into experiences provides homeowners with additional income streams. You can give guided tours of your city, lead morning yoga&hellip;<\/p>\n","protected":false},"author":43,"featured_media":5375,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[473,601,380,581,377,467,693,630,421],"class_list":["post-5336","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-investing-articles","tag-airbnb","tag-identity-theft","tag-insurance","tag-investment-property","tag-investor","tag-passive-income","tag-profit","tag-rental","tag-scammers"],"_links":{"self":[{"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/posts\/5336","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/users\/43"}],"replies":[{"embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/comments?post=5336"}],"version-history":[{"count":3,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/posts\/5336\/revisions"}],"predecessor-version":[{"id":5377,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/posts\/5336\/revisions\/5377"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/media\/5375"}],"wp:attachment":[{"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/media?parent=5336"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/categories?post=5336"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/tags?post=5336"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}