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Houston

Leasing scams put Houston landlords on alert 

Agents and brokers took part in fraudulent credit reports

Agents’ Leasing Scams put Houston Landlords on Alert
TREC’s Michael Molloy with city of Houston (Illustration by The Real Deal with Getty)

Leasing scams are proliferating throughout the Houston area, putting landlords and listing agents on full alert. 

The Texas Real Estate Commission has deployed 37 members of its enforcement division to investigate numerous scams that have emerged over the past two years, the Houston Chronicle reported, citing a news release from the TREC. 

These scams, ranging from falsified credit reports to misrepresented applicant qualifications, have posed significant risks to property owners in the greater Houston area. Notably,  these schemes have not only targeted landlords but also involved participation from agents and brokers.

“These scams are deceiving landlords, tenants and even our license holders into fraudulent lease agreements,” TREC enforcement division director Michael Molloy told the outlet.

Among the cases detailed in the news release, one involved a Houston sales agent who had been submitting applications with falsified credit reports, collaborating with other individuals in the process, for an extended period. Consequently, the agent’s license was revoked, accompanied by a substantial administrative penalty of $115,000, while a co-conspirator faced a similar fate with a $48,750 penalty.

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Furthermore, there were instances in which sales agents submitted fraudulent lease applications, placing unqualified applicants into multiple single-family homes. In one such case, a sponsoring broker failed to exercise proper supervision over the agent, resulting in penalties and license revocations for both parties involved.

The TREC Enforcement Division is urging license holders to conduct thorough research to avoid becoming entangled in the surge of complaint investigations associated with leasing fraud.

“Be sure to review the details you receive in a rental application. If something feels off don’t be afraid to ask questions, or consult with another license holder or an attorney. TREC urges Houstonians to stay informed and proactive in combating real estate fraud,” the news release says. 

—Quinn Donoghue

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Texas Real Estate CommissionMichael Molloy
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