Property rental scams can lead to high financial loss and emotional distress for victims. Here’s what you need to know about these schemes and how to protect yourself.
Common Rental Scams
Rental scams can play out in many ways:
- Bogus listings. Here, scammers create ads for properties that either don’t exist or aren’t available for rent. Once contacted, the scammer will invent a reason for not being able to show the property in person and pressure the victim into sending money for deposits or fees.
- Payment redirection. In this scheme, fraudsters impersonate legitimate landlords or property managers and instruct tenants to redirect rental payments to their accounts.
- Overpayment scams. In this variation, scammers pose as prospective tenants and send a check for more than the required amount, asking the landlord to refund the excess. The original payment later bounces, leaving the landlord out for the refunded amount.
Red Flags
Watch out for these red flags of possible rental scams:
- Unusually low rent. If a rental rate seems too good to be true, it probably is.
- Pressure to act fast. If you’re urged to make immediate decisions or payments without sufficient time to consider the offer, proceed with caution.
- Requests for unconventional payment methods. Demands for payment via wire transfers, gift cards or cryptocurrency are common tactics used by scammers.
- Lack of proper documentation. If the landlord or agent cannot provide a lease agreement, or avoids answering questions, consider it a red flag.
How to protect yourself
- Verify the listing. Conduct a reverse image search of the property’s photos to ensure they haven’t been copied from other listings.
- Visit the property. Always insist on viewing the property in person or by a live virtual tour.
- Research the landlord or property manager. Look up the individual’s or company’s credentials, read reviews and verify association with the property.
- Avoid upfront payments. Never send money before seeing a property, signing a lease agreement and confirming the legitimacy of the rental offer.
If you’re targeted
If you’ve fallen victim to a property rental scam, be sure to alert at so we can halt or reverse unauthorized transactions. Next, file a complaint with local law enforcement and report the incident to the Federal Trade Commission (FTC) and the Internet Crime Complaint Center (IC3). Finally, if the scam occurred through an online listing platform, report the listing to the company as well.
Stay safe!