How to Spot a Rental Scammer and Make Sure a Rental Property is Legit

We all rely on the Internet for our home and rental searches. But, not all listings are what they seem.

In fact, a survey done by Apartment List reported that 43% of online apartment shoppers came across a fake listing. Some 5.2 million people (mostly between 19 to 29) in the United States lost money to rental scams. Out of those scam victims, the median loss was $400 – but nearly 18% lost more than $2,000!

To avoid becoming one of these statistics, we’ve done the research and found what you need to know to spot a rental scam. Use these tips to heighten your radar to detect scams, and don’t waste your time and money!

Use Reputable Vendors

First, rely on reputable online housing sources, like Rent.com, to find an apartment. A listing on Facebook Marketplace or Nextdoor is more likely to come from a questionable source. However, even Apartments.com and other housing sources aren’t foolproof. Scammers find their way onto these listing services, too, which is why you’ve got to develop that scam detector. Look out for everything below.

Too Good to Be True

As the saying goes, “if the price looks too good to be true, it probably is.” That’s red flag no. 1.

Is the rent listed a lot less than other comparable rentals in the area? If so, you could be witnessing a potential scam. According to the FTC, these criminals often lure renters in with a monthly rent rate way below the market price.

Once the victims take the bait, they’re pressured to send money immediately – apartment unseen – by wire transfer, cash, or gift cards. This is a no-no. Wiring money is like sending cash and can’t be traced or reversed. Instead, research the communities you’re moving into so you know the average rental rates.

Bad Grammar

If the online rental listing/ad is poorly written, keep scrolling. Beware of typos, poor grammar, misspellings, low-quality photos, excessive punctuation, or incomplete information like an actual address.

Serious landlords or property managers always take the time to write an error-free listing to represent their properties in the best possible light. It’s the best way to make a first impression on the Internet amidst viable renters.

Scammers’ listings will showcase the exact opposite, with signs that English might not be their first language or that they’ve simply stolen the image and have no details. Speaking of which…

Copied Listings & the Middleman Scam

This is one of the most common scam schemes, especially on classified sites, like Craigslist. If you land on a perfectly worded listing at the most amazing price, call the number listed. But when you talk to someone who says they’re managing the apartment for the real owners, don’t fall for the trap.

Scam artists will copy listing details from a legit real estate platform and create their scam listing at a lower price. So, it may be a real place, but not the real person.

On top of that, the rental scammer will try to convince you that they’ve had such a high volume of interested renters that you’ll need to make a deposit (sometimes even first and last month payments) immediately to reserve your “dream” apartment – without a live or virtual tour.

One study on Craiglist rental scams reported nearly 29,000 scam listings within the 20 cities monitored within a little more than 100 days. The best way to avoid them is to make sure you’ve seen the apartment, either in person or virtually, before you pay anything.

Expensive Background Checks or No Screening Process

It’s a common protocol for landlords to conduct a background check on all potential renters before becoming a tenant. However, be leery if the price is more than $30-$60. Never hand over cash without consulting a reliable real estate agent if you’re skeptical of the situation. On the other hand, you should also be suspicious if a landlord doesn’t require a background check or screening process at all. It could be a scam.

No Written or an Incomplete Lease Agreement

Never rent an apartment before signing official lease documents. This is for your protection and for the landlord. Without it, it could be rental fraud. Rental scam risks, like remote signing and limited interactions, rose after COVID-19 made more processes virtual.

When perusing the lease contract, make sure the actual homeowner’s name is listed and signed. It should have contact information for the leasing agent and/or landlord. After you sign, make sure you receive a copy of the contract, and not just the landlord.

They Don’t Want To Meet In Person or You Can’t See the Property Before Signing

If a landlord or property manager claims they cannot meet you in person to show the property, don’t go any further with this listing. A good landlord would want to meet you in person to get their impression of you. The same for you of them. Do they seem sketchy or an illegitimate property owner?

On that same front, rental scammers don’t want you to meet in person, so you can’t report them to the authorities. They often say they’re out of town or in the military to avoid the meeting.

You Can’t Identify the Owner of The Property

Similar to the above, it’s imperative that you see all documents identifying the true homeowner before signing the lease agreement. You need to know for sure you are dealing with a person who has the legitimate right to rent out the unit. A real homeowner would have no reason not to show you the documents. If something seems fishy, trust your instincts. If nothing else, search county property tax records. It should reveal who owns the property.

What to Do If You Are a Victim of a Rental Fraud Scam

• Call the Federal Trade Commission Consumer Response Center at 1-877-FTC-HELP or fill in an FTC complaint form at https://reportfraud.ftc.gov/#/.
• File a complaint with the Internet Crime Complaint Center at https://www.ic3.gov/.
• Call the police and report all the details of your case.
• Seek legal counsel who specializes in this form of law.
• Leave a negative review to make others aware and protect them from this scammer quickly.
• If you haven’t leased, report it to the housing site you found the listing on.

Updated May 2024