Rental scams cost Americans over $500 million every year, with the average victim losing more than $1,000. As rental markets become increasingly competitive—especially in cities like Los Angeles, New York, and San Francisco—scammers have become more sophisticated. They prey on urgency, distance, and trust. This comprehensive guide will teach you exactly how to spot a rental scam before you become a victim.
The Current State of Rental Scams
The FBI's Internet Crime Complaint Center (IC3) received over 11,000 rental scam complaints in 2023 alone, with losses totaling $362 million. But experts believe the actual numbers are much higher—many victims never report their losses out of embarrassment or hopelessness.
The COVID-19 pandemic accelerated the problem. As virtual tours became normalized, scammers found it easier to avoid in-person meetings. Remote work has also created a wave of long-distance relocators who can't easily verify properties before committing.
The 15 Red Flags of a Rental Scam
1. The Price Is Too Good to Be True
This is the most common red flag. Scammers use significantly below-market prices to attract victims quickly. If a one-bedroom in Manhattan is listed for $1,500 when similar units rent for $3,500, something is wrong.
Always research comparable rentals in the same area. Use Zillow, Apartments.com, or local rental listings to understand the market. A deal that seems too good probably isn't a deal at all—it's a trap.
2. The Landlord Won't Meet In Person
Legitimate landlords want to meet potential tenants. They want to show off their property, explain the terms, and evaluate who they're renting to.
If a landlord has elaborate excuses for why they can't meet—they're traveling, dealing with a family emergency, stationed overseas, doing missionary work abroad—be extremely cautious. While these situations do exist, they're also the most common cover stories for scammers.
3. They Want Wire Transfer, Gift Cards, or Crypto
This is perhaps the biggest red flag. Legitimate landlords accept payment through traceable methods: checks, credit cards, payment apps linked to real identities, or property management portals.
Wire transfers, gift cards, and cryptocurrency are essentially untraceable and irreversible. No legitimate landlord will insist on these payment methods. If someone demands you pay this way, you're almost certainly dealing with a scammer.
4. Pressure to Act Immediately
"I have five other applicants. If you don't send the deposit today, it's gone."
Scammers create artificial urgency to prevent you from doing due diligence. They know that if you take time to research, you might discover the scam. They pressure you to act emotionally rather than rationally.
Legitimate landlords understand that signing a lease is a significant decision. While competitive markets do move quickly, no reputable landlord will demand same-day deposits without letting you see the property.
5. They Ask for Money Before Showing the Property
Never pay any money—whether it's a deposit, application fee, or "holding fee"—before you've physically seen the property (or had it professionally inspected).
Scammers often claim they'll mail you keys or that you can "drive by and look through the windows." These are techniques to get your money without ever giving you legitimate access.
6. The Photos Look Generic or Stolen
Scammers often steal photos from legitimate listings, real estate websites, or even hotel rooms. Look for signs that photos might not be authentic: watermarks from other sites, unusually high quality for a rental listing, stock-photo-style staging, or images that don't match the description.
Do a reverse image search on Google Images. If the same photos appear on multiple listings with different addresses or on real estate sales sites, you've likely found a scam.
7. The Listing Is Vague About Location
Legitimate listings include the full address so potential renters can research the property, neighborhood, and commute. Scammers hide addresses to prevent you from discovering that the property doesn't exist, is already occupied, or isn't available for rent.
Be wary of listings that only mention a neighborhood or give a partial address "for security reasons."
8. No Background Check or Application
Real landlords screen tenants. They check credit, verify employment, contact references, and often run background checks. This protects them from problem tenants.
If a landlord doesn't ask for any of this—if they seem happy to rent to anyone who can pay—question why. They might not actually own the property and therefore don't care who "moves in."
9. The Story Doesn't Add Up
Trust your instincts. If the landlord's story keeps changing, if details don't match between the listing and conversation, or if things just feel "off," pay attention to that feeling.
Scammers often run multiple scams simultaneously and may confuse details. They may also be operating from scripts that don't fit every situation.
10. They're Unusually Responsive
While good communication is normally positive, be cautious of landlords who respond instantly at all hours with long, formal messages. Scammers often operate from different time zones and may be running automated responses.
Contrast this with the typical landlord who has a day job and might take a few hours to respond.
How Rental Scams Actually Work
The Phantom Listing Scam
The scammer finds a legitimate rental or for-sale listing, copies the photos and description, and reposts it at a lower price with their own contact information. They collect deposits from multiple victims for a property they don't own or control.
The Hijacked Listing Scam
Similar to phantom listings, but the scammer specifically targets properties that are currently vacant—foreclosures, properties between tenants, or homes on the market. They may even have enough information to conduct showings, using the "overseas landlord" cover story.
The Bait and Switch
You're shown one property—maybe a nice model unit in a complex—but end up signing a lease for a different, inferior unit. The scammer may claim the original unit was just rented.
The Application Fee Scam
Some scammers focus on volume over amount. They post attractive listings and collect $50-100 application fees from hundreds of applicants, then disappear. They never intended to rent anything.
Step-by-Step Verification Process
Follow this process before sending any money:
Step 1: Research the Property
Search the address on Google, Zillow, Redfin, and your local assessor's website. Verify who owns the property. Check if it's currently for sale, recently sold, or in foreclosure.
Step 2: Verify the Landlord's Identity
Ask for identification. Search their name online. If they claim to work with a property management company, call that company directly (using a number you find yourself, not one they provide).
Step 3: Insist on Seeing the Property
No exceptions. If you can't visit in person, have someone you trust visit, or use a professional inspection service. Never rent sight-unseen based on photos alone.
Step 4: Meet the Landlord
Meet them at the property. If they insist on meeting elsewhere or only communicating electronically, that's a red flag.
Step 5: Read the Lease Carefully
Before signing anything, read every word. Ensure the address, terms, and landlord name match what you've verified. Don't let anyone rush you.
Step 6: Pay Safely
Pay with methods that create paper trails: personal checks, cashier's checks, or secure platforms. Never wire money, use gift cards, or pay in cryptocurrency.
What to Do If You've Been Scammed
If you've already lost money to a rental scam, act quickly:
Report to local police and get a report number. File a complaint with the FTC at reportfraud.ftc.gov. Report to the FBI's IC3 at ic3.gov. Report the fraudulent listing to the platform where you found it. Contact your bank—you may be able to dispute charges or stop payments. Report to your state's Attorney General office.
How DibbyTour Helps
When you can't verify a rental in person, DibbyTour provides professional inspection services. Our local inspectors will visit the property, verify its existence and condition, meet the landlord, take comprehensive photos and video, and provide a detailed report—all before you send any money.
This service is especially valuable for long-distance moves, international students, military relocations, and anyone who can't physically visit before committing.
Conclusion
Rental scams are preventable. By knowing the red flags, following a verification process, and never rushing into payments, you can protect yourself from becoming one of the hundreds of thousands of victims each year.
When in doubt, slow down. A legitimate rental opportunity will still be available after you've done your due diligence. A scam, by definition, will not withstand scrutiny.