Renting safely and spotting rental scams

Rental scams follow a predictable pattern: a suspiciously low price, a landlord who is conveniently unavailable, and persistent pressure to pay immediately before you see the property. Newcomers to the US—who are often unfamiliar with local rental practices, eager to secure housing, and sometimes isolated from trusted networks—are targeted deliberately. Understanding how to spot and avoid these scams is essential to protecting yourself and your family.

Why You Are a Target

Scammers exploit three vulnerabilities common to newly arrived immigrants and international students. First, you may not know what standard rental practice looks like in the US, making it harder to detect warning signs. Second, you may be willing to pay faster or accept unusual terms because you need housing urgently. Third, you might be living alone or in a new city without a trusted local advisor to validate what a landlord is asking of you. Scammers are aware of all three factors and use them against you.

Since 2020, the Federal Trade Commission (FTC) has received nearly 65,000 reports of rental scams with approximately $65 million in losses. The actual number is likely much higher, because many victims never report the crime. The good news is that all of these scams share a small set of warning signs. If you know them, you can protect yourself.

The Golden Rule: Never Pay for What You Haven't Seen

The most consistent warning sign across all rental scams is a request for money before you have visited the property in person or watched a live video tour. This includes deposits, application fees, first month's rent, or holding fees. A legitimate landlord will always wait for a tour before asking for any payment. There is no legitimate reason for a pre-tour financial commitment.

If a landlord claims to be out of the country, out of town, or unable to meet you in person, ask to schedule a live video tour where they can show you around in real time. If they refuse or make excuses, walk away. A genuine property manager or owner will always be willing to let you see the space and verify that it actually exists, is in the condition promised, and is available for rent.

Red Flag Payment Methods

Scammers prefer payment methods that are fast, irreversible, and untraceable. If a landlord insists on any of the following payment methods, it is almost certainly a scam. Once you send money through these channels, it is gone and cannot be recovered.

• Wire transfers through Western Union, MoneyGram, or your bank
• Gift cards (Amazon, iTunes, Google Play, or any other retailer)
• Cryptocurrency (Bitcoin, Ethereum, or any other digital currency)
• Payment apps like Venmo, Zelle, CashApp, or similar services
• Money orders or cashier's checks sent by mail

Legitimate landlords and property managers use traceable, secure methods: credit card payments, personal checks made payable to the landlord or property management company, or direct bank transfers through official property management portals. These payment methods offer fraud protection and a paper trail. If the landlord asks you to pay by wire transfer or gift card, that alone should be enough to make you stop and walk away.

Verify the Actual Landlord and Property Ownership

Many rental scams work by hijacking legitimate listings. A scammer copies a real rental ad, changes the contact information so you reach them instead of the true owner, and posts the fake listing on another website. Or they may claim to own a property when they do not. Always verify who actually owns the property before signing anything or sending money.

Search for the address online

Enter the property address into Google and other search engines. Look for the same address listed on multiple sites. If you find it listed with different prices, different contact names, or listed for sale instead of for rent, it is almost certainly a scam. Run the address through major rental sites (Zillow, Apartments.com, Craigslist) to confirm that the property appears on the official rental company's website as well as the site where you found the listing.

Check public property records

Property ownership is public record in every state. Contact your county assessor's office, county recorder's office, or local tax assessor—these offices maintain searchable databases of property owners. Many now offer online search tools. If the name on the lease or rental agreement does not match the name in the public records, do not rent from that person. You can also ask the person claiming to be the landlord to show you official documentation proving ownership. A legitimate landlord will have no problem providing this.

Call the property management company directly

If the listing mentions a property management company or an apartment complex, do not use the phone number provided in the ad. Instead, search for the company's official website and call the number listed there. Ask to confirm that the person or email address in the rental listing actually works for them. Ask whether the property is currently available for rent. Scammers sometimes pose as agents or use stolen phone numbers; calling the verified company number is your best protection.

Other Warning Signs

The rent is suspiciously cheap

Compare the advertised rent to similar properties in the same neighborhood. If it is significantly lower than nearby units—especially if the listing also boasts amazing amenities or perfect condition—be skeptical. Scammers use too-good-to-be-true prices to create urgency and excitement, making you less likely to ask critical questions.

Poor grammar and vague details

Read the rental listing carefully. Scam ads often contain misspellings, awkward phrasing, unusual capitalization, or vague property descriptions. A legitimate landlord will provide specific details about the property: bedroom and bathroom count, amenities, lease terms, and contact information. Be wary of listings with excessive capitalization, poor grammar, or details that are so vague you could not identify the property from the description alone.

The landlord asks for personal information too early

Until you have agreed to rent a specific property, a landlord does not need your Social Security number (SSN), credit score, driver's license, or paystubs. Scammers collect this sensitive information to steal your identity or commit fraud. A legitimate landlord will pull your credit score themselves once you are serious about the property and have signed an agreement to rent. They will not ask you to pull your own credit score or email it to them. Be especially wary if someone sends you a link to a credit-check website and tells you to sign up—these may enroll you in a paid membership with recurring fees.

Pressure to decide quickly

Scammers often create artificial urgency: 'This price is only good today,' 'I have another tenant interested,' or 'You need to send the deposit by tonight.' A real landlord understands that finding the right tenant takes time and will allow you to review the lease and visit the property without pressure. If someone is pushing you to make a decision, walk away.

Understanding Security Deposits

A security deposit is refundable money you give the landlord to protect them against damage to the property or unpaid rent. It is not a fee or extra cost of renting—you should receive it back when you move out (minus legitimate deductions). However, security deposit laws vary significantly by state and even by city, so you must check the specific rules where you are renting.

Maximum deposit amounts vary by state

Some states cap security deposits at one month's rent. Others allow two months' rent or more. A small number of states (such as Florida, Georgia, Idaho, Indiana, and Minnesota) impose no legal limit on deposit amounts. California, after a recent law change, generally limits unfurnished rentals to one month's rent. Always look up the specific limit in the state where you are renting before agreeing to pay.

Deadlines for returning deposits

After you move out, the landlord must return your security deposit within a deadline set by state law. These deadlines range from 14 to 60 days, depending on the state. The landlord may deduct from the deposit only for damage beyond normal wear and tear or unpaid rent, not for ordinary cleaning or small repairs. If the landlord makes deductions, they must provide an itemized written list explaining what was deducted and why. If you do not receive your deposit on time or believe the deductions are unfair, consult your state's tenant rights guide or contact a local legal aid organization.

Get a Signed Lease Before You Pay Anything

A lease is a written contract between you and the landlord. It spells out the rent amount, due date, length of the rental period, what is included in the rent, rules, and the security deposit amount. Both you and the landlord must sign and date the lease. A signed lease protects both of you by making all the terms clear in writing.

Never pay a deposit, application fee, or first month's rent unless you have a signed lease in your hands. If a landlord refuses to provide a written lease or asks you to sign a blank lease, do not rent from them. The lease should clearly state the property address, the names of all people living in the unit, the monthly rent amount, when rent is due, the security deposit amount, and the lease start and end dates.

Most states allow leases to be signed electronically (via DocuSign, email, or other digital methods) and these are legally binding. However, some states have different rules, so confirm that e-signatures are acceptable in your state before signing digitally. If you are uncomfortable signing electronically, you can print, sign by hand, and mail the lease back to the landlord.

Keep a copy of your signed lease somewhere safe (email it to yourself, print it, or store it in cloud storage). You will need it if there are disputes about rent, repairs, or your security deposit at the end of your lease.

If You Suspect a Scam or Have Been Scammed

If you realize you have sent money to a scammer, act immediately. Contact your bank or credit card company right away and explain that you were the victim of fraud. Ask if they can reverse the charge or freeze the funds. If you sent money by wire transfer, contact the recipient's bank's fraud department—they may be able to freeze the account before the scammer withdraws the money.

Report the scam to the FTC at ReportFraud.ftc.gov or by calling 877-382-4357 (interpreters are available for many languages; press 3). Also report it to local law enforcement and to the website where you found the rental listing so they can remove the fake ad and warn other renters. Keep copies of all emails, messages, and documents related to the scam.

Be aware that money sent by wire transfer, gift card, or cryptocurrency is almost never recovered. Money sent by credit card or bank transfer may be recoverable through a chargeback or dispute process, but this takes time and requires documentation. The best defense is prevention: verify before you pay.

Key Takeaways for New Renters

1. Never pay a deposit, application fee, or rent before viewing the property in person or via live video tour.
2. Do not pay using wire transfers, gift cards, cryptocurrency, payment apps, or any untraceable method.
3. Verify that the person claiming to be the landlord actually owns the property by checking public records and calling the official property management company phone number.
4. Compare the advertised rent to nearby properties; if it is unusually cheap, be skeptical.
5. Do not provide your Social Security number, credit score, driver's license, or personal financial information until you have agreed to rent and signed a lease.
6. Get a signed lease before you send any money.
7. If a landlord refuses to meet you in person, claims to be out of the country, or pressures you to decide quickly, walk away.
8. Save all communication, email addresses, phone numbers, and documents related to the rental.
9. If you are scammed, report it to the FTC immediately and contact your bank.