{"id":5051,"date":"2023-02-28T03:38:00","date_gmt":"2023-02-28T07:38:00","guid":{"rendered":"https:\/\/propertyonion.com\/education\/?p=5051"},"modified":"2026-03-17T19:27:16","modified_gmt":"2026-03-17T23:27:16","slug":"how-to-spot-a-rental-scam","status":"publish","type":"post","link":"https:\/\/propertyonion.com\/education\/how-to-spot-a-rental-scam\/","title":{"rendered":"How to Spot a Rental Scam!"},"content":{"rendered":"<div style=\"background-color:#f4f4f4; border-left:4px solid #aaaaaa; border-radius:4px; padding:8px 14px; margin:0 0 24px 0; font-family:Arial, sans-serif; font-size:13px; color:#666666;\"><strong>Updated:<\/strong> March 16, 2026<\/div>\n<p>Knowing how to spot a rental scam before it costs you money requires understanding the most common schemes targeting both landlords and tenants in today&#8217;s rental market, and the red flags that consistently appear before any money changes hands.<\/p>\n\n<p>Real estate presents many opportunities for investors. Flipping, wholesaling, rental properties, and tax deductions are some of the advantages you will find in this asset. Renters don\u2019t get the same advantages as investors, but they can more easily move around from place to place. Unfortunately, this successful asset has also attracted <a href=\"https:\/\/propertyonion.com\/education\/foreclosure-scam-sends-fannie-mae-employee-to-jail\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"real estate scammers. (opens in a new tab)\">real estate scammers.<\/a><\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>Looking at several properties can help you find better deals, but rental scams set up deals that are too good to be true.\u00a0<\/p><\/blockquote>\n\n\n\n<p>Real estate scams aren\u2019t something new. George C. Parker convinced people in the 1880s that he owned the Brooklyn Bridge and pitched the\u00a0\u2018investment opportunity.\u2019\u00a0Parker told victims that they could make recurring income by charging money for access to the bridge. He made as much as $50,000 from some of his victims. This was also during a time when Ellis Island saw an influx of immigrants. Parker was eventually arrested and sentenced to life, and new arrival cards at Ellis Island explicitly stated that no one could buy public buildings or streets.<\/p>\n\n\n\n<p>Scammers have gotten smarter in recent years, and the business is booming. The&nbsp;<a href=\"https:\/\/www.fbi.gov\/contact-us\/field-offices\/boston\/news\/press-releases\/fbi-warns-of-spike-in-rental-and-real-estate-scams\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">FBI posted a warning<\/a>&nbsp;detailing the growth of these scams. In 2021, people reported a 64% year-over-year increase in losses from real estate scams. <a href=\"https:\/\/propertyonion.com\/education\/watch-out-for-these-florida-real-estate-scams\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Scammers (opens in a new tab)\">Scammers<\/a> prey on people seeking great deals, and the fake landlord scam is an emerging threat.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">In this Article:<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/propertyonion.com\/education\/how-to-spot-a-rental-scam\/#What_Is_the_Rental_Scam\" >What Is the Rental Scam?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/propertyonion.com\/education\/how-to-spot-a-rental-scam\/#How_Rental_Scams_Blend_in_with_Rental_Property_Listings\" >How Rental Scams Blend in with Rental Property Listings<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/propertyonion.com\/education\/how-to-spot-a-rental-scam\/#Warning_Signs_of_a_Rental_Scam\" >Warning Signs of a Rental Scam<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/propertyonion.com\/education\/how-to-spot-a-rental-scam\/#How_to_Protect_Yourself_from_the_Fake_Rental_Scam\" >How to Protect Yourself from the Fake Rental Scam<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/propertyonion.com\/education\/how-to-spot-a-rental-scam\/#The_Most_Common_Schemes_You_Need_to_Know_How_To_Spot_A_Rental_Scam\" >The Most Common Schemes You Need to Know: How To Spot A Rental Scam<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Is_the_Rental_Scam\"><\/span>What Is the Rental Scam?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The rental <a rel=\"noreferrer noopener\" aria-label=\"scam (opens in a new tab)\" href=\"https:\/\/propertyonion.com\/education\/desperate-tenants-busted-in-scam-to-sell-house-they-are-squatting-in\/\" target=\"_blank\">scam<\/a> or the &#8220;Fake Landlord Scam&#8221; targets renters seeking good deals. They browse through several listings and find similarly priced properties. Then, a rental available at a significant discount catches their attention. Looking at several properties can help you find better deals, but rental scams set up deals that are too good to be true.\u00a0<\/p>\n\n\n\n<p>It\u2019s too good to be true because scammers using this strategy have no connection to the property. They pretend to be real estate agents working with the property owner. After receiving funds from victims, they disappear. Victims arrive at the property only to learn they cannot live in the unit. The scammer is long gone by the time victims realize they have been duped.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>Many rental scams look legit during the early phases. The only difference is a price tag that seems too good to be true.<\/p><\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Rental_Scams_Blend_in_with_Rental_Property_Listings\"><\/span>How Rental Scams Blend in with Rental Property Listings<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It\u2019s easy for scammers to find pictures of the property and display them on third-party sites. If the property was listed for sale or is also available for rent on another platform, they can take those pictures and use them in the listing. They use popular third-party sites, like Zillow, Realtor, and Craigslist, to promote their insincere&nbsp;\u201cfor rent by owner\u201d listings. These properties show up in the algorithms, and renters filtering their search for the lowest prices may find the scammer\u2019s listing at the top of search results.&nbsp;<\/p>\n\n\n\n<p>You must provide personal information, such as your name, email, and phone number, to inquire more about the listing. This is the standard procedure for third-party sites that let people list properties. Many fake landlord scams look legit during the early phases. The only difference is a price tag that seems too good to be true.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>If the screening felt too easy or didn\u2019t exist in the first place, you may be talking to someone running a fake rental scam.\u00a0<\/p><\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Warning_Signs_of_a_Rental_Scam\"><\/span>Warning Signs of a Rental Scam<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Scammers give themselves away in their communication. If you know what to look for, you can detect a scammer\u2019s malicious intent before they take your money. The most telling sign of a scammer is how they ask for payment via crypto, wire transfers, and payment apps.<\/p>\n\n\n\n<p>A scammer\u2019s main objective is preventing a third party from overseeing the financial transaction. Airbnb only releases payments to a landlord 24 hours after the guest checks into the property. Other third-party groups have similar restrictions in place that make it harder for scammers to get away with deceiving victims.&nbsp;<\/p>\n\n\n\n<p>Fake rental <a rel=\"noreferrer noopener\" aria-label=\"scams (opens in a new tab)\" href=\"https:\/\/propertyonion.com\/education\/real-estate-investors-scammed-for-3000000-after-not-doing-their-due-diligence\/\" target=\"_blank\">scams<\/a> use low prices to attract victims, but they also allow tenants to make seamless transactions. Scammers don\u2019t do much screening if any at all. In the scammer\u2019s eyes, every potential victim is qualified, and spending too much time with one victim might hurt their chances of siphoning funds. A potential victim might catch on with too much interaction, and scammers prefer to scale their efforts as quickly as possible. If the screening felt too easy or didn\u2019t exist in the first place, you may be talking to someone running a fake rental scam.\u00a0<\/p>\n\n\n\n<p>A popular strategy among fake rental scammers is requesting that you send funds quickly and make advance rent payments. The scammer may ask you to make a rent advance for six months to get the next two months for free, but only if you send funds within the next 24-48 hours. This short deadline and enticing reward encourage many to pay several months of rent in advance. It\u2019s a deceptive strategy that allows renters to make far more than a month\u2019s worth of rent without providing the promised services.\u00a0<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>You should also be careful about looking someone up on Google. While you can verify some people\u2019s identities with Google, some scammers create websites for fake realtor personas to make themselves seem legit. <\/p><\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Protect_Yourself_from_the_Fake_Rental_Scam\"><\/span>How to Protect Yourself from the Fake Rental Scam<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Knowing the warning signs and the existence of this scam can help, but there are additional ways to protect yourself. You can remain adamant about conducting the transaction through a third party, like Realtor or Zillow, instead of completing the transaction off the platform. You can also request an in-person meeting or request that the realtor takes you to the premises. Realtors accommodate reasonable requests like these to close sales, but if your contact balks at these requests, that person may be a scammer.&nbsp;<\/p>\n\n\n\n<p>An email or phone call isn\u2019t enough to verify someone\u2019s identity. You should also be careful about looking someone up on Google. While you can verify some people\u2019s identities with Google, some scammers create websites for fake realtor personas to make themselves seem legit. An in-person encounter or requesting a property tour can do a lot more to keep you safe.<\/p>\n\n\n\n<p>You can also reach out to a real estate lawyer and have that person do a title search. A title search <a href=\"https:\/\/propertyonion.com\/education\/what-is-due-diligence-in-real-estate\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"verifies who owns the property  (opens in a new tab)\">verifies who owns the property <\/a>and if the realtor you\u2019re speaking to is allowed to sell the property. Tenant applicants can also reach out to their municipalities to <a href=\"https:\/\/propertyonion.com\/education\/tax-certificate-and-tax-deed-sales\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"verify a deed. (opens in a new tab)\">verify a deed.<\/a> The realtor may provide a deed to prove they can sell the home, but scammers can forge these documents.<\/p>\n\n\n\n<p>Real estate scammers aren\u2019t going away. Rental unit prices have soared since the pandemic, and the limited housing supply is making it extremely unlikely that prices will revert to their pre-pandemic levels. If you find a price lower than the average rental property in the area, you have to ask yourself why. Does the property have structural damage? Is it in a bad part of town? Is the listing reputable, or does it seem sketchy?<\/p>\n\n\n\n<p>Rental scams will never go away, but knowing the warning signs can help you stay safe from these unethical individuals.<\/p>\n\n<h2><span class=\"ez-toc-section\" id=\"The_Most_Common_Schemes_You_Need_to_Know_How_To_Spot_A_Rental_Scam\"><\/span>The Most Common Schemes You Need to Know: How To Spot A Rental Scam<span class=\"ez-toc-section-end\"><\/span><\/h2><p>The phantom rental scheme is the most widespread situation requiring you to know how to spot a rental scam immediately. In this scheme, a fraudster copies a legitimate rental listing and re-posts it at an attractive price. When applicants respond, the scammer collects application fees or security deposits before disappearing, leaving victims with no housing and no recourse.<\/p><p>Application fee fraud requires knowing how to spot a rental scam from the landlord perspective. Fraudulent applicants submit professional-looking fake income verification documents, bank statements, and references that appear legitimate at first glance but are entirely fabricated to secure approval and access to the property.<\/p><p>Overpayment schemes represent another version of knowing how to spot a rental scam that landlords must master. The scammer poses as an interested tenant, sends a check for more than the deposit amount, and asks the landlord to refund the difference before the original check bounces, which can take several business days after deposit.<\/p><p>The non-existent landlord scam is perhaps the most sophisticated scheme requiring investors to know how to spot a rental scam patterns deeply. Someone posing as a property owner with fabricated documentation attempts to collect deposits on a property they do not own, using forged deeds or quit claim deeds to create a false appearance of legal ownership.<\/p>\n<p>Investors who want to avoid how to spot a rental scam situations should implement a thorough process to <a href=\"https:\/\/propertyonion.com\/education\/how-to-effectively-screen-tenants\/\" target=\"_blank\" rel=\"noopener\">screen tenants<\/a> that independently verifies all income, employment, and rental history documents rather than accepting applicant-provided copies at face value.<\/p><p>Rental fraud involving fraudulent ownership claims sometimes appears in the title chain of properties sold at <a href=\"https:\/\/propertyonion.com\/education\/understanding-foreclosure-auctions-in-florida\/\" target=\"_blank\" rel=\"noopener\">florida foreclosure auctions<\/a>, making a thorough <a href=\"https:\/\/propertyonion.com\/education\/florida-title-search-101-how-to-uncover-hidden-liens-encumbrances-and-red-flags-before-you-bid\/\" target=\"_blank\" rel=\"noopener\">florida title search<\/a> an essential protection before bidding on any distressed property.<\/p><p>Investors who want to learn about the broader fraud landscape should review our guide on <a href=\"https:\/\/propertyonion.com\/education\/real-estate-investors-scammed-for-3000000-after-not-doing-their-due-diligence\/\" target=\"_blank\" rel=\"noopener\">real estate investor scams and due diligence<\/a> which covers the range of schemes that target active investors beyond just rental fraud situations.<\/p><p>Understanding <a href=\"https:\/\/propertyonion.com\/education\/understanding-foreclosure-laws-in-florida-for-real-estate-investors\/\" target=\"_blank\" rel=\"noopener\">florida foreclosure laws<\/a> helps investors recognize when someone is misrepresenting the legal status of a property, a common element of sophisticated scam schemes targeting serious real estate buyers.<\/p><p>After identifying a fraudulent transaction, a <a href=\"https:\/\/propertyonion.com\/education\/try-and-do-your-own-free-property-lien-search\/\" target=\"_blank\" rel=\"noopener\">free property lien search<\/a> protects against the possibility that a scammer has already filed fraudulent documents against the property in county public records.<\/p>\n<div style=\"background-color:#eef6fd; border-left:5px solid #1a73b8; border-radius:6px; padding:24px 28px; margin:32px 0; font-family:Georgia, serif;\"><p style=\"font-size:20px; font-weight:bold; color:#1a3a5c; margin:0 0 10px 0;\">The Platform Built for Serious Florida Auction Investors<\/p><p style=\"font-size:15px; color:#2c4a6e; margin:0 0 14px 0;\"><strong>PropertyOnion.com<\/strong> gives you real-time Florida auction listings, property research tools, and free downloadable eBooks that walk you through every step of the auction investing process from research to closing.<\/p><a href=\"https:\/\/propertyonion.com\/?&#038;reference_member_id=wpposts45&#038;ref2=wpposts45\" target=\"_blank\" rel=\"noopener\" style=\"display:inline-block; background-color:#1a73b8; color:#ffffff; font-family:Arial, sans-serif; font-size:15px; font-weight:bold; padding:12px 24px; border-radius:4px; text-decoration:none;\">Download the Free eBook Now<\/a><\/div>","protected":false},"excerpt":{"rendered":"<p>Updated: March 16, 2026 Knowing how to spot a rental scam before it costs you money requires understanding the most common schemes targeting both landlords and tenants in today&#8217;s rental market, and the red flags&hellip;<\/p>\n","protected":false},"author":43,"featured_media":5067,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[568,564,567,67,436,420,421,565,569,566],"class_list":["post-5051","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-investing-articles","tag-deceptive","tag-fake-landlord","tag-funds","tag-real-estate","tag-rental-market","tag-scam","tag-scammers","tag-third-party-site","tag-unethical","tag-warning-sign"],"_links":{"self":[{"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/posts\/5051","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/users\/43"}],"replies":[{"embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/comments?post=5051"}],"version-history":[{"count":3,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/posts\/5051\/revisions"}],"predecessor-version":[{"id":13464,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/posts\/5051\/revisions\/13464"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/media\/5067"}],"wp:attachment":[{"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/media?parent=5051"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/categories?post=5051"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/tags?post=5051"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}