Every year, thousands of renters and landlords fall victim to rental scams, losing deposits, sensitive data, or access to their own property. Understanding how to spot a rental scam early can help you steer clear of these threats and make smarter, safer decisions in the rental process. Let’s dive into our article now!
What is a Rental Scam?
A rental scam is a deceptive practice where fraudsters pose as landlords or property managers to exploit prospective tenants. These scams often involve fake listings, unauthorized sublets, or demands for upfront payments without providing access to the property.
The goal is to trick individuals into paying deposits or rent for properties that either don't exist or aren't available for rent. According to MarketWatch, 43% of renters who encountered suspicious listings engaged with the scam, and one in five lost money. Victims report losing an average of $1,000 per incident. Scammers prey on urgency and emotion, promising great deals or pressuring for quick decisions.
How to Spot a Rental Scam: 10 Common Red Flags Tenants Should Watch Out For
So, how do rental scams work? What are the common signs?
Recognizing the warning signs of rental scams can save you from potential house rental fraud. Here are 10 red flags to be aware of:
- 1. Unusually Low Rent Prices
- 2. Pressure to Make a Quick Decision
- 3. Landlord or Property Manager Refuses to Meet in Person
- 4. Requests for Payment via Untraceable Methods
- 5. No Screening Process or Rental Application
- 6. Listing Photos Appear Elsewhere
- 7. Poor Grammar, Generic Replies, and Vague Language
- 8. Incomplete or Inconsistent Listing Information
- 9. They Ask for Sensitive Information Too Early
- 10. Fake Reviews or Overly Perfect Testimonials
1. Unusually Low Rent Prices
Scammers often attract attention by offering properties at prices that are significantly lower than the neighborhood average. This tactic is especially effective in competitive housing markets, where renters may feel pressure to jump on a "deal" before someone else does.
Pro Tip: Use comparison tools to check the average market rate for your target area. If the price is significantly lower than similar units nearby, proceed with caution and verify the source thoroughly.
2. Pressure to Make a Quick Decision
Scammers often manufacture urgency to pressure you into acting fast. You might be told, “I have several people interested,” or “If you want it, you need to send a deposit today.” This psychological manipulation is designed to short-circuit your judgment.
People fear missing out on a great deal and may overlook warning signs in their rush to secure the property.
Pro Tip: A legitimate landlord or property manager will give you time to consider the lease, ask questions, and think it over. Never let anyone rush you into paying money without due diligence.
3. Landlord or Property Manager Refuses to Meet in Person
A core part of any legitimate rental process is seeing the unit in person. Scammers, however, typically create excuses to avoid showing the property. They might claim they’re overseas, busy with work, or dealing with a family emergency. They’ll encourage you to look around the property from the outside or offer pre-recorded videos as substitutes.
The scammer likely doesn’t have access to the property at all, or it may not exist. In some cases, they copy photos and descriptions from real listings to create a convincing facade.
Pro Tip: Always insist on a tour before paying anything. If you're relocating from out of state, ask a trusted friend or real estate agent to view it on your behalf.
4. Requests for Payment via Untraceable Methods
Scammers prefer payment methods that are fast, anonymous, and irreversible. These include wire transfers (like Western Union or MoneyGram), prepaid gift cards, Zelle, Venmo, CashApp, or cryptocurrency. Once the money is sent, it’s almost impossible to recover.
Legitimate landlords typically use secure and traceable channels such as certified checks, property management portals, or direct bank transfers with receipts and formal leases.
Pro Tip: Never send money without a signed lease and verified identity.
5. No Screening Process or Rental Application
A lack of vetting is a huge red flag. Landlords usually ask for references, proof of income, credit reports, and possibly a background check. If someone is ready to rent to you after one conversation, it's a sign that they’re not interested in who you are but just in your money!
Pro Tip: Be skeptical of any landlord who doesn’t request basic information. Real property owners have a vested interest in protecting their investment and will want to know you’re a reliable tenant.
6. Listing Photos Appear Elsewhere
Scammers routinely copy legitimate property photos from real estate platforms or listing websites. They repost them with different contact information, fake addresses, or altered details.
You might even find the original listing is active but listed under a real agent at a completely different price.
Pro Tip: Perform a reverse image search using Google Images. Upload the photo or paste the image URL. If it appears on multiple unrelated listings, you’re likely dealing with a scam.
7. Poor Grammar, Generic Replies, and Vague Language
Scam messages often contain spelling errors, awkward phrasing, and vague responses. You might receive emails that contain non-specific information about the apartment, or use unnatural English. These scammers may operate internationally, and the lack of professionalism can be a giveaway.
Pro Tip: Watch for poor grammar, overly generic answers, or evasive replies when you ask direct questions about the lease.
8. Incomplete or Inconsistent Listing Information
Scam listings often lack basic information: no address, missing amenities, vague lease terms, or incomplete contact details. Inconsistencies are also common. For example, a listing may say "2 bed, 1 bath" in the title but "3 bed, 2 bath" in the description.
Pro Tip: Cross-reference listings on reputable platforms. Look up the address in Google Maps.
9. They Ask for Sensitive Information Too Early
A major red flag in rental scams is being asked to hand over personal or financial details too soon. Scammers may request your Social Security Number, bank account information, driver’s license, or even a full credit report.
Once they have these details, they can:
- Steal your identity
- Open credit cards or loans in your name
- Drain your bank accounts
- Sell your data on the dark web
This tactic is especially dangerous because it feels like a normal part of the rental process, especially for first-time renters who aren’t familiar with what’s appropriate. While LeaseRunner does need the applicant’s Social Security Number, it is never shown directly to the landlord or stored in LeaseRunner’s database.
Pro Tip: Never provide personal or financial information before verifying the landlord’s identity and the property’s legitimacy.
10. Fake Reviews or Overly Perfect Testimonials
On platforms like Craigslist, Facebook Marketplace, or unofficial rental websites, scammers often try to build trust by using fake reviews and testimonials. These reviews may look legitimate at first glance, but are usually written with overly generic or exaggerated praise.
Sometimes, the entire profile (including a fake name, stock photo, and a network of “reviewers”) is fabricated to look trustworthy. This social proof trick plays on emotions and gives renters false confidence.
Pro Tip: Trust verified reviews from platforms like Google.
How Landlords Can Fall Victim to Rental Scams by Tenants
While rental scams are often associated with fake landlords targeting tenants, landlords themselves are also vulnerable to sophisticated scams. Below are some of the most common cases and how to spot them before it’s too late.
1. Fake Tenant Applications
Scammers often submit fraudulent rental applications using false identities, stolen information, or altered documents. This is typically done to gain access to a rental property under deceptive circumstances, often to avoid background checks, hide evictions, or perpetrate further scams.
They may use:
- Fake names or Social Security Numbers
- Forged pay stubs or bank statements
- Fabricated references (often friends posing as employers or landlords)
Tip: Always verify tenant information with third-party screening services. Call employers directly using publicly listed phone numbers, not those listed on the application.
2. Subletting Scams
Some tenants sign a lease with no intention of living on the property. Instead, they illegally sublet the unit, often at a higher price, to someone else. They even rent it to multiple parties at once, particularly in hot housing markets.
In cities with strong tenant protection laws, it can be extremely difficult and time-consuming to remove unauthorized subtenants.
Tip: Add explicit no-subletting clauses to your lease.
3. Wire Transfer Fraud
Landlords can also fall victim to payment house rental fraud schemes, where a tenant overpays using a wire transfer or check and then requests a refund for the difference. Days later, the original payment bounces, leaving the landlord out of pocket.
Tip: Never refund overpayments unless the initial payment has fully cleared.
4. Fake Repair Claims and Chargebacks
Once moved in, scam tenants may manufacture complaints about fake repairs or property damage to:
- Demand partial rent refunds
- Threaten legal action for "unsafe conditions"
- Initiate credit card chargebacks on rent payments
They may also work with dishonest contractors to inflate repair costs and demand deductions or reimbursements.
Tip: Maintain thorough records of inspections, repairs, and communication.
5. Filing False Discrimination Claims
In rare but increasing instances, scam tenants may file false Fair Housing complaints as retaliation, such as after a rejected application or eviction notice. These complaints can tie landlords up in legal costs and investigations, even if the claims are baseless.
Tip: Treat all applicants equally and maintain written records of the screening process.
6. Fake Lease Disputes
Some bad-faith tenants intentionally misinterpret the lease or fabricate lease violations by the landlord. They may use these tactics to delay rent, break the lease early, or initiate legal disputes to avoid paying what they owe.
Tip: Keep a communication log with timestamps for all tenant interactions and maintenance requests.
7. Fake Emotional Support Animal (ESA) Letters
Some tenants try to get around no-pet rules or pet fees by using fake ESA letters purchased online. They may threaten you with legal action if you deny their request.
Tip: Learn your rights under the Fair Housing Act. You can request a letter from a licensed healthcare provider with a real relationship with the tenant.
8. Squatters and Tenants
These tenants move in, pay the first month, and then stop. They know the legal system well and use eviction laws to stay for free, sometimes for months.
Tip: Thoroughly screen all applicants. Avoid rushing to fill vacancies.
9. Rent Payment Excuses
Some tenants stall rent with endless excuses: “the check’s in the mail,” “bank issues,” “mistyped the account number.” They may send fake payment confirmations to trick you.
Tip: Set clear rent due dates and use online platforms that confirm when payments are made.
10. Filing for Bankruptcy to Stop Eviction
Some scam tenants abuse bankruptcy protection laws to delay or avoid eviction. When a landlord files for eviction, the tenant quickly files for Chapter 7 or 13 bankruptcy, which triggers an automatic stay that freezes all collection and eviction efforts.
In extreme cases, serial fraudsters move from rental to rental, filing repeat bankruptcies under multiple aliases.
Tip: If you suspect this tactic, consult a landlord-tenant attorney immediately. You can file a motion for relief from the automatic stay to continue with the eviction.
How Landlords & Tenants Can Protect Themselves From Rental Scams
Rental scams can cost victims thousands of dollars. Fortunately, both landlords and tenants can take smart, proactive steps to protect themselves.
Tip #1: Verify the Identity of the Other Party
For Tenants: Before signing anything or sending money, confirm that the person claiming to be the landlord actually owns or manages the property. You can:
- Ask to see a government-issued ID and proof of property ownership (like a deed or tax bill).
- Look up the owner’s name via public property records (available online in most cities).
- Research the company or agent through Google, Better Business Bureau, or state license boards.
For Landlords: Thoroughly screen every applicant to ensure they are who they claim to be. Red flags are:
- Inconsistent personal details (e.g., mismatched names or contact info)
- Hesitance to provide ID, employment details, or references
- Documents that look altered or generic
Tip #2: Use Trusted Platforms for Transactions
For Tenants:
- When searching, stick to reputable rental websites.
- Avoid sending money through unsecured apps like Cash App or Venmo unless it’s to a verified business account. Use verified payment methods, like LeaseRunner.
- Don’t make payments in gift cards, crypto, or cash. These are all common scam methods.
For Landlords:
- List properties on official, well-known rental marketplaces.
- Use digital rent collection tools that confirm payment status and prevent fake receipts, like LeaseRunner..
- Set up a separate bank account for rent payments to avoid mixing personal and business funds.
Tip #3: Never Send Money Without Seeing the Property or Meeting in Person
One of the most common and costly rental scams involves someone sending money (usually a security deposit) before ever seeing the home or meeting the landlord or tenant.
For Tenants:
- Don’t pay deposits or application fees until you've physically toured the property or had a verified virtual walkthrough.
- Be cautious of landlords who are “out of town” or push you to pay quickly without allowing a visit.
For Landlords:
- Never hand over keys or sign a lease before meeting the applicant and confirming their identity.
- Be wary of prospective tenants who are eager to pay before viewing the home or who claim to be moving from overseas and want to handle everything online.
Conclusion
With rental scams on the rise, understanding how to spot a rental scam isn’t optional anymore. Share these tips with friends, fellow landlords, and tenants to help others avoid costly traps! Want more expert insights on tenant screening, lease tips, and rental safety? Explore the LeaseRunner blog for practical advice and updates every landlord should know.
FAQs
Q1. How to catch a rental scammer?
Catching a rental scammer starts by recognizing the signs early. Look for red flags like:
- A landlord or tenant who refuses to meet in person
- Pressure to pay quickly, often via wire transfer, gift cards, or cash apps
- Poor grammar, vague property details, or inconsistent contact information
- Deals that seem “too good to be true” compared to market rates
If you suspect fraud, stop all communication.
Q2. How to tell if a rental is legitimate?
To verify that a rental is real and not part of a scam:
- Cross-check the rental listing on multiple platforms
- Visit the property in person or request a live video tour
- Ask for proof of ownership (like a tax bill or utility in the landlord’s name)
- Research the landlord or agent to confirm they are licensed or publicly known
- Look up the address in county property records to match the owner’s name
Remember: a legitimate landlord or property manager will never rush you, refuse to meet, or ask for payment before a proper lease is signed.
Q3. How to spot a fake lease agreement?
A fake lease agreement may look convincing at first glance, but several details can give it away:
- Missing the landlord’s or tenant’s full legal names
- No address or legal description of the property
- No mention of local rental laws or required disclosures
- Generic formatting, typos, or unusual clauses (like paying in gift cards)
- No contact info, signatures, or dates
When in doubt, ask a real estate attorney or property manager to review the document.
Q4. What should I do if I already paid a rental scammer?
If you realize you’ve been scammed after sending money for a rental, act quickly:
- Stop communication with the scammer. Block their number, email, and any social media profiles.
- Report the incident to the platform where you found the listing.
- Contact your bank or payment service (PayPal, Venmo, Zelle, etc.) to report the fraud and request a chargeback or freeze the transaction. While not guaranteed, some services offer limited protection or may flag the scammer’s account.
- File a police report with your local authorities. This can help you document the crime and may be required by your bank or insurance company.
