Rental scams are big business. With rental prices soaring across the country, people are looking for deals—and scammers know it. But as the saying goes: If something seems too good to be true, it probably is.
Since 2020, Americans have reported 65,000 rental scams to the Federal Trade Commission (FTC), with losses topping $65 million. Even worse, the FTC says those numbers are grossly underinflated: Less than 5% of people report any kind of scam to authorities at all. Rental scams are particularly devastating because housing is such a basic need, which is why renters need to be extremely savvy when searching for a place to live.
“Rental scams are becoming more sophisticated because scammers know renters are often trying to act fast, especially in tight markets, and they exploit that urgency with increasingly believable listings and messaging,” says Lynette Owens, vice president of global consumer education and marketing at Trend Micro, a cybersecurity company. If you have a pet or want to live in the hippest neighborhood, for example, you might be tempted to jump on a great listing instead of looking for red flags—and that’s exactly what scammers are hoping for.
But Owens says scammers aren’t just looking to steal money up front—that’s small change. No, what they really want is to harvest your personal and financial information to use in a longer-term fraud. Ahead, Owens and Iskander Sanchez-Rola, the director of artificial intelligence and innovation at Gen Digital, break down the most common rental scams, so keep reading to learn how to keep you and your money safe.
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The three most common rental scams
No matter the scam, many start with fake listings. And they look legit because scammers often copy actual rental listings, swapping out the real contact information for their own. Or, they make a completely new listing using real or generated images. Half of these reported scams start on Facebook Marketplace, with another 16% originating on Craigslist. Here are the most common ones.
Asking for money upfront
A tell-tale sign of a scam is pressure to pay money before you’ve even seen the place they’re supposedly renting to you. These sham requests could be for an “application fee” or a deposit to “hold the place.” To create a sense of urgency, scammers often claim they’re out of town or that there are multiple applicants, Owens says. “Then they push payment through wire transfers, cash apps, crypto or gift cards, methods that are hard to trace or recover.”
Asking for screenshots of your credit scores
It’s perfectly normal for potential landlords to check your creditworthiness, but this is something else. The FTC reports that scammers are asking for screenshots of credit scores, or offering a “deal” for a $1 credit check. These are major red flags. “These scams succeed because they mimic financial responsibility rather than fraud,” according to Sanchez-Rola, who says the key issue is control.
“When a landlord dictates where and how you check your credit, the screening process is no longer legitimate,” Sanchez-Rola says. According to the FTC, requests like these could lead you to websites where the scammer gets a kickback. “The real risk is not the $1 charge, but what follows,” Sanchez-Rola says. “Many of these sites are built around subscription conversion or affiliate revenue, not tenant evaluation.”
Collecting personal information
A common thread running through many of these rental scams is the desire to steal your identity. What’s tricky is that a lot of the information scammers ask for is what a legitimate landlord also needs—pay stubs, a photo of your driver’s license—but with these scams, there is no apartment or rental home.
It starts with an application, and they can look very real. “Fake applications can collect sensitive details like your name, date of birth, Social Security number, banking info and even ID scans, which can later be used to open new accounts, commit fraud or be sold online,” Owens says. “These forms often look legitimate, but they’re really designed to harvest personal data.”
If it sounds like renters can’t win—everyone has to fill out a rental application!—we have tips coming up to help you root out the fraudsters from the legit landlords. But first, let’s break down who these scams target the most.
Who is most likely to fall for scams?
It’s Gen Z. Renters between 18 and 29 are three times more likely than other age groups to report losing money to a rental scam. Surprised? Don’t be. Despite being tech-savvy, Gen Z is also vulnerable because they’ve lived their entire lives online and can be easy targets for tax, real estate and other scams.
Sanchez-Rola says it’s not because younger renters aren’t careful, but rather because they tend to search for housing in fast-moving rental markets—and they rely heavily on online listings. “In practice, scammers do best where rentals move quickly, and renters feel pressure to act before a place is gone,” Sanchez-Rola says. Plus, with online marketplaces, “identity cues can be misleading,” he adds. “Seeing a real profile photo or name can create a false sense of trust, even when the listing itself is unverified.”
Owens says scammers target renters who are moving quickly or don’t know the local market, and that Gen Zers can be easy targets because they’re often first-time renters, students or searching for low-cost listings in high-demand areas. “These victims are usually under time or financial pressure, which scammers exploit,” Owens says.
How can you avoid falling for rental scams?
If all this sounds a little scary (how can you avoid giving your ID?), our experts and the FTC have good tips to help you avoid falling for a rental scam. Here’s what to do when you’re looking for a new place to live.
Search the rental address online
Scammers often use real rental or for-sale listings, including legitimate photos and addresses, to lure you in. Before agreeing to meet or provide any personal information, search the address online and do a reverse-image search. If you find the same property listed with a different contact than the one you’ve been given, that’s most likely a scam. If you find the home listed for sale instead of for rent? That’s a red flag too, according to the FTC.
Overall, it’s important to take your time and verify the information you have. “The FTC’s guidance focuses on verification, but an equally important aspect is slowing the process down,” Sanchez-Rola says. “Scammers depend on renters moving faster than they normally would in a high-stakes transaction.”
Don’t share personal information too early
According to the FTC, a landlord doesn’t need your Social Security number, credit score or other sensitive information until you’ve agreed to rent a place. But scammers love to create a false sense of urgency. They might tell you that they need to verify you in advance, even before showing you the rental. Don’t do it. Instead, verify them before proceeding.
“The best defense is to slow down and verify the owner or rental company before paying anything or sharing sensitive personal information,” Owens says. Call the phone number on their legitimate website (not just the listing), check Google reviews and business complaints. “Don’t share your Social Security number, banking information or scans of your personal identification until the landlord or property manager is verified.”
Look into typical rents nearby
Nobody wants to overpay, and everyone wants a deal, but cities—and even individual neighborhoods—have general market rates for rentals. Check Zillow, Redfin and Apartments.com to see if the advertised rent is a lot cheaper than most rents in the area. If it’s way out of whack, that’s a big sign of a scam, according to the experts.
“If a listing seems too good to be true or the process feels rushed and secretive, it probably is,” Owens says. “Don’t be afraid to walk away. Finding a place to rent should be something to look forward to, not regret.”
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At Reader’s Digest, we’re committed to producing high-quality content by writers with expertise and experience in their field in consultation with relevant, qualified experts. We rely on reputable primary sources, including government and professional organizations and academic institutions as well as our writers’ personal experiences where appropriate. We verify all facts and data, back them with credible sourcing and revisit them over time to ensure they remain accurate and up to date. Read more about our team, our contributors and our editorial policies.
Sources:
- Lynette Owens, vice president of global consumer education and marketing at Trend Micro; interviewed January 2025
- Iskander Sanchez-Rola, director of artificial intelligence and innovation at Norton; interviewed January 2025
- Federal Trade Commission: “Rental scams hit home with $65 million in reported losses”
- Federal Trade Commission: “Rental Listing Scams”
- Social Science Research Network: “To Whom Do Victims of Mass-Market Consumer Fraud Complain?”
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