Apartment rental scams: What they are and how to avoid them

What is a rental scam?

Scammers mislead potential tenants about a property listing to trick them into sending money or personal information. Common rental scam tactics include:

• Posting fake listings. Using generic images or images from other housing websites, scammers post an ad for a property that doesn’t exist or that someone has already rented.
• Imitating a landlord. Some scammers claim to be a landlord without having any ties to the property they’re selling.
• Pressuring you for payments. Scammers demand money before you meet them in person or sign a lease. They’ll request security deposits, application fees, rent payments, etc.
• Lying about prices. Scammers offer unusually low rent or flexible lease terms to entice you into signing something as soon as possible.

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How rental scams are successful

Rental scammers prey on your urgency and excitement to find a new place, especially in a competitive housing market. By falsifying property listings and offering prices below market value, rental scammers trick their victims into thinking that a listing is a rare and time sensitive. Then, by convincing you that the property is in high demand, the scammer asks for money while claiming they can’t meet in person.

Renters, especially in competitive markets, often feel pressured to close a deal or sign a lease before someone else purchases the apartment. As a result, they overlook the risks of paying upfront before verifying everything.

How to spot and avoid a rental scam

The next time you’re apartment hunting, look for these signs of an apartment rental scam:

• Unusually low rent. If rent is unusually low for the area, this signals a potential scam. Scammers often advertise low rent to bait you into signing something and sending payment before viewing the property.
• Untraceable payments. Scammers may ask for a deposit using wire transfers, prepaid debit cards, gift cards, or cryptocurrency instead of traditional forms of payment. Recovering losses becomes harder once you send money through these channels.
• Lack of personal information. Be wary of landlords that can’t meet in person, show the property, or provide a live tour. Legitimate landlords usually allow potential tenants to view a property in person.
• Pressure to act quickly. Scammers create a false sense of urgency by claiming that your potential apartment is in high demand. This prompts you to sign something before doing your research.
• Requests for money without viewing the property. Scammers may ask for money before letting you view the apartment. Asking for a deposit, first month’s rent, or even a holding fee without offering an in-person tour or proper documentation are signs of a potential scam.

How to protect yourself

Protect yourself against apartment rental scams with these tips:

• Do your research. Ensure the listing is legitimate by cross-checking multiple housing websites or by searching the address online. Look up the landlord’s name and contact details, and reach out to previous tenants or check online reviews of the property.
• Use secure payment methods. Avoid wire transfers or other untraceable forms of payment, and pay with a credit card or secure payment system.
• Avoid sending money before viewing. If possible, visit the apartment in person before sending any money.

Use these tips to protect yourself from falling victim to an apartment rental scam. If you suspect a scam, report it to local authorities or the Federal Trade Commission (FTC). Lastly, trust your instincts—if something feels off, investigate further before making any big decisions.