How to Avoid Rental Scams

When you find the perfect apartment or home to rent, it’s a great feeling. It’s only natural to want to send in your application fee or deposit right away. These days, though, it’s a good idea to slow down before handing over your money.

Experts say rental scammers usually take two approaches: passing off real apartment listings as their own or creating fake listings for apartments that aren’t for rent or don’t exist. Either way, once you hand over your money, the “landlord” stops taking your calls. Or worse, you show up to find someone else living in the apartment you thought was yours.

Such scams are common. In 2023, the FBI’s Internet Crime Complaint Center received 9,521 rental scam reports, totaling more than $145 million being stolen. According to a 2022 survey of more than 400 renters, nearly 23 percent of respondents had personally experienced rental fraud in the past 12 months, losing an average of $2,890.

With rent prices going up and most rentals listed online, AARP Foundation wants you to know the warning signs to watch out for and what you can do to protect yourself from getting scammed. 

Warning Signs Of An Apartment Rental Scam

Here are six red flags to watch out for:

1. Lower than average rent. Cheap rent is the biggest red flag. Scammers know that renters are looking for a good deal, so they’ll post too-good-to-be-true prices and nice features, such as on-site gyms, free parking, and high-end appliances.
2. Ads that don’t add up. Pay close attention to listing details and photos. Do the pictures include an unrelated website or management company? If the same listing is posted on multiple websites, it’s not always a sign of fraud. But be wary if different ads contain different information, such as how much it costs. Or if you notice that a unit listed for rent on one site is for sale on another.
3. Demands for up-front payment. Scammers will ask for money before allowing you to see the rental. Nothing should be due before the lease is signed other than a small application fee (more on those below).
4. Non-refundable payment methods. Requests to wire money, pay with gift cards, or send cryptocurrency are classic scam tactics, according to the Federal Trade Commission (FTC). Individual landlords may collect rent or deposits via money transfer apps such as Venmo or Zelle, but they shouldn’t demand rent payments before you sign a lease — and you can always ask if they’ll accept another method, such as a check or bank transfer.
5. A sense of urgency or pressure. Scammers want you to act fast and pay quickly. They may share an unusual story about why they cannot give a tour or meet in person, such as a sudden move abroad or family emergency. If you have a gut feeling something is wrong, listen to it.
6. Poor communication. Take note if someone insists on communicating only by email or text, or is unwilling to answer basic questions about the rental. Reputable landlords and property managers should be willing to answer any reasonable question about the apartment and rental process.

How To Protect Yourself From An Apartment Rental Scam

Research the rental

Search for the rental location’s address, along with the name of the property owner or rental company. If other ads come up for the same address but with a different owner or rental company name, that’s a sign of a scam. You can also use an online map to make sure the property exterior matches the listing photos.

Check landlord reviews

Search for the name of the owner or property manager online. The FTC advises adding the words “complaint,” “review,” or “scam.”

See the apartment in person, if possible

Always take a tour before signing a lease or making payments of any kind. If you’re moving from out of town, ask the landlord for a tour via video call or have a friend visit for you. If the owner won’t agree to meet or talk? Walk away.

Understand the application process

Application fees are used to cover the cost of processing a rental application or conducting a background or credit check, but real landlords won’t insist on outrageous sums or ask you to pay before a tour.

It’s a good sign if a landlord uses a screening website to conduct these checks because your personal information and payment are submitted directly to the screening service. And fees should be reasonable: Zillow’s online application starts at $35 for tenants, and TransUnion’s SmartMove screening starts at $25.

Don’t pay a deposit before signing your lease

Always review a lease before signing — the deposit amount should be noted — and refuse unclear terms or promises that the landlord will complete the lease after receiving a deposit. The majority of states have laws limiting deposit amounts. Often, it’s one to two months’ rent.

What To Do If You’ve Been A Victim Of A Scam

Report money lost

File a fraud claim with the bank, wire transfer service, or mobile payment app you used to send money. The FTC offers a guide to reporting fraud by payment type, including gift cards and cryptocurrency. Prompt filing helps payment companies crack down on fraud. But you may not be able to recover money once it is sent.

Report the listing

Report the fake listing to the website where you found it. Rental scams should also be reported to the FTC at reportfraud.ftc.gov and to the FBI’s Internet Crime Complaint Center at www.ic3.gov. Consider contacting your local law enforcement agency and state consumer protection office or attorney general.

Even if you didn’t hand over money, reporting attempted scams to services like BBB Scam Tracker helps the experts track fraud and alert others.

Protect your identity

Rental scammers are usually seeking money, but they may ask for personal information. If you share your Social Security number, be sure to place a fraud alert on your credit report. You might also freeze your credit. Identity theft should be reported to the FTC at www.identitytheft.gov or by calling 877-438-4338.

Additional Resources

We hope these tips have helped you learn what to watch out for when searching for your next home. For more support, check out the resources below:

• Call the AARP Fraud Watch Network Helpline at  877-908-3360 for free support.
• Find out if rental sites and property management companies are on the up and up at the Better Business Bureau.
• Explore guides for avoiding scams on popular websites that list rentals: Craigslist, Zillow, Rent, and Apartments.com.​​

AARP Foundation adapted this article for my.aaarpfoundation.org from an article on the AARP website.