How to Spot a Rental Scam Before You Pay Anything
Fake rental listings come in two kinds. Learn the red flags and the checks the FTC names before you send money.
You find a great apartment at a price that seems too good. Before you send a deposit, slow down. The FTC says scammers make up fake rental listings designed to grab your attention and your money. The place may not exist at all. Here is how a rental scam works and how to check a listing before anything leaves your wallet. Other guides cover an investment scam and a job scam.
How rental scams work: the two kinds of fake listings
The FTC describes two kinds of rental scams.
In the first, scammers take over real rental listings and make them their own.
In the second, scammers create listings for places that are not for rent or do not exist. Either way, the FTC says a fake rental listing offers a place that is not really waiting for you.
The goal is the same in both. The FTC says a rental scammer might try to pocket your money for an application fee, deposit, first month's rent, or a vacation rental charge. Once the scammer gets your money or personal information, they disappear, and you have no place to move in to.
Red flags in a rental listing
Watch for these signs.
Rent that is far below the market. The FTC says if the rent is a lot cheaper than most rents in the area, it could be a sign of a scam. Fake rental ads might also offer surprisingly low rent or amazing amenities. A deal that beats every other listing in the neighborhood deserves a hard look.
Pressure to decide fast. The FTC says if anyone pressures you to make a decision quickly, walk away.
A home listed for sale, not for rent. The FTC says if you find the home listed for sale instead of for rent, that is a big red flag. Scammers sometimes use the address of a house that is really for sale, just not for rent.
A landlord who asks you to pull your own credit report. The FTC says most landlords normally pull your credit score themselves and do not tell you to get it for them.
How to verify a rental before you pay anything
You can run a few checks in an afternoon. Do them before any money moves.
Search the address online. The FTC says to search online for the rental location's address along with the name of the property owner or rental company.
Do not trust a video tour as proof. The FTC says even a video or virtual tour is not a guarantee that a property is real or available for rent. A tour is a nice extra, never the whole test.
Use contact information you already have. The FTC's advice says to use contact information you already have to contact the owner or rental company. Look up the management company's number yourself instead of using the one in the ad.
Vacation rentals: extra steps before a deposit
The FTC gives two checks for vacation rentals.
The FTC says to check that the address of a vacation rental property really exists.
The FTC also says to get a copy of the contract before you send any deposit money. Read it.
What to do if you spot or fall for a rental scam
If a listing turns out to be fake, report it. The FTC's advice says to report a rental listing scam to your local law enforcement agency and to the website where the ad was posted.
The FTC also says to report it at ReportFraud.ftc.gov.
If you already paid, the FTC says the person you were dealing with will disappear with your money. That is the pattern, and it is why the checks above come first. Other guides cover scam tax calls and jury duty scam calls.
Keep your notes, screenshots and receipts from the listing. And the next time a price looks too good, run the checks before the money moves.