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Renter Resources›Rental Scams

How to Avoid Rental Scams

Rental scams cost renters an average of $1,500–$3,000 per incident. Learn the 8 most common scams, the red flags to spot them, and what to do if you've been targeted.

$1,500–$3,000
Average loss per victim
43%
Of scams originate on social media or Craigslist
1 in 4
Renters encounter a scam listing when apartment hunting

The 8 Most Common Rental Scams

Know these before you start your apartment search. Scammers rely on urgency, emotion, and information asymmetry.

01

The phantom listing

Extremely common

A scammer copies a real listing from Zillow, Realtor.com, or a property website and reposts it on Craigslist, Facebook Marketplace, or a rental app at a lower price. The "landlord" is not real and you will never see the apartment.

Red flags

  • Price is 15–30% below comparable units in the area
  • Photos look professional but listing says "private landlord"
  • Landlord cannot show you the apartment in person ("out of town" or "missionary abroad")
  • Google reverse image search finds same photos on a different listing
02

The deposit-before-viewing scam

Very common

The scammer asks you to pay a security deposit or first month's rent before you can view the apartment. Claiming it secures your "application" or ensures a showing slot. Once paid, they disappear.

Red flags

  • Any request for money before an in-person showing
  • Payment requested via Zelle, Venmo, wire transfer, or gift cards
  • Lease or keys to be "mailed" to you
  • "Too many interested parties" pressure tactic to send money immediately
03

The fake "verification fee" or "background check" scam

Common

Before showing you the property or processing your application, the "landlord" asks you to pay for a background check or credit check through a link they provide. The fee is pocketed and no check is ever run.

Red flags

  • Landlord directs you to their own link (not TransUnion, Experian, or a known service)
  • Fee seems unusually low or high
  • Landlord says they need it before you can "reserve" the unit
  • No formal application is provided
04

The bait-and-switch

Common

You tour a great unit, sign what appears to be a lease, and pay a deposit. But when you arrive to move in, the unit is different (or doesn't exist). Sometimes the lease was for a different, inferior unit.

Red flags

  • Lease address differs from the apartment you toured
  • Property manager is "unavailable" at move-in
  • Lease is sent by email without an in-person walkthrough
  • Photos on the listing don't match the unit you toured
05

The identity theft application

Less common but costly

Scammers create fake listings to collect rental applications containing your SSN, income, and banking information. The "apartment" doesn't exist; the goal is your identity.

Red flags

  • Application asks for full SSN before any showing or screening
  • No verifiable property address or management company
  • Application link is a Google Form or unusual website
  • No signed authorization form before running a background check
06

The "owner abroad" scam

Classic scam

A scammer posing as the property owner claims they are overseas (often a missionary, military, or doctor) and cannot show the unit in person. They offer to mail keys after you wire a deposit.

Red flags

  • "I am overseas and cannot meet in person"
  • "I will mail you the keys once you send the deposit"
  • Only communicates via email, never by phone or video call
  • Story changes or email responses are delayed and generic
07

The short-term sublet scam

Growing

Someone renting an apartment illegally sublets it to you without the landlord's knowledge. You pay rent to the "subletter" who may then stop paying the actual landlord, leaving you facing eviction.

Red flags

  • Listing found on Airbnb, VRBO, or Facebook for 30–90 days
  • Renter does not want you to contact the building management
  • No official lease with a property owner or management company
  • "Landlord" is uncomfortable with you verifying ownership records
08

The too-good-to-be-true luxury unit

Common online

A high-quality apartment is listed at a price significantly below market value, often with vague reasons ("urgent relocation," "divorce," "moving abroad"). The goal is to lure you in quickly before you investigate.

Red flags

  • Asking price is 20%+ below identical units nearby
  • Listing has been up for a very short time with heavy pressure to act now
  • "First come, first served" urgency with no formal screening process
  • Landlord is unwilling to negotiate or answer basic questions about the building

How to Stay Safe When Renting

Follow these six rules and you will avoid the vast majority of rental scams.

Always tour in person (or via live video)

Never pay anything. Not even an application fee. Without seeing the unit with your own eyes, or at minimum on a live video call where the landlord walks through the space in real time.

Verify ownership before paying

Look up the property on your county assessor's website. The owner of record should match who you are dealing with. Management companies can be verified via Secretary of State business filings.

Only pay through traceable methods

Use check, bank transfer to a verified business account, or a platform with fraud protection. Never pay via wire transfer, Western Union, gift cards, or Zelle to an unverified contact.

Speak to the landlord or PM by video call

Request a video call before signing anything. Real landlords and property managers will accommodate this. Scammers prefer email and text to avoid being seen.

Use a verified renter profile

A Settl profile with bank-verified income and ID verification lets you submit to landlords who have been vetted. Reducing your exposure to fake listings.

Trust your instincts

If something feels off. Prices are too low, communication is evasive, or you are being rushed. Walk away. Legitimate landlords understand due diligence.

What to Do If You've Been Scammed

1

Contact your bank or payment service immediatelyDo this first

If you paid by credit card, file a chargeback. For debit/ACH, report fraud within 48 hours for the best chance of recovery. Zelle fraud is harder to recover. Escalate to your bank and ask for an investigation.

2

Report to the FTC

File a report at reportfraud.ftc.gov. This builds the evidence base for law enforcement action and may help others.

3

File a local police report

Get a case number. Some banks and insurance companies require it. Rental fraud over $500 is a felony in many states.

4

Report the listing on the platform

Flag the listing on Craigslist, Facebook, Zillow, or wherever you found it. This removes it and prevents future victims.

5

Monitor your credit and identity

If you submitted a rental application with personal information, place a fraud alert with the three major credit bureaus (Equifax, Experian, TransUnion) and monitor for new accounts.

Settl into your new home.

Rent safely with a verified Settl profile

Your Settl Verified Passport and verified renter profile lets you apply to legitimate landlords with confidence. And helps landlords verify that you are real and financially ready.

Verified identity (no fake applicants)
Bank-verified income (no document fraud)
Share your profile. Landlords trust it

Frequently Asked Questions

What should I do if I think I've been scammed?

Act immediately: (1) Report to the FTC at reportfraud.ftc.gov and file a complaint with your local police. (2) Report the listing on whichever platform it appeared. (3) If you paid by debit/credit, contact your bank immediately to dispute the transaction. (4) File a complaint with your state attorney general's office. (5) Alert your local housing authority.

Can I get my deposit back if I was scammed?

It depends on how you paid. Credit card payments have the strongest chargeback protection. Bank transfers and Zelle payments can sometimes be reversed if reported within 48 hours. Wire transfers and gift cards are almost never recoverable. Contact your bank as soon as possible.

How do I verify that a landlord actually owns the property?

Search your county assessor or recorder's office website (free in most counties). Enter the property address to see the current owner of record. If the name differs from who you are dealing with, ask for an explanation. Management companies should be verifiable via state business registrations.

Are rental scams more common on certain platforms?

Craigslist and Facebook Marketplace have the highest rates of fake listings because anyone can post without verification. Zillow, Apartments.com, and Realtor.com have more controls but are not immune. Scammers copy and repost verified listings. Always verify ownership regardless of which platform you use.

Is it a scam if the landlord asks for first and last month's rent upfront?

Not necessarily. First and last month's rent is a common and legal practice in many states. The key is whether you have signed a legitimate lease after verifying the landlord's identity and touring the unit in person. Paying before any of that is the red flag.

How does Settl protect renters from scams?

Settl's profile system connects you to landlords and properties that have been reviewed. Because your Settl Verified Passport and application come through a verified platform, landlords on Settl have a verifiable identity. You are also less likely to need to apply to unverified listings when you have a professional, complete rental profile ready to share.

Related guides

Rental Fraud Alert

Fake pay stub. Stolen identity. Both approved in under 5 minutes.

Every landlord knows it. Fake pay stubs, fabricated bank statements, stolen identities. Settl proves your income is real and your identity is verified. Zero documents accepted.

Document Fraud
30s
To generate a fake pay stub
Free AI tools, no skill required. Tested by Settl research team
84%
Of rental fraud uses faked documents
Pay stubs, W-2s, bank statements. All fakeable in minutes
TransUnion Rental Industry Report, 2024
$0
Cost to fake a bank statement
PDF editors and AI make it free and fast
Identity Fraud
1 in 5
Applications contain identity misrepresentation
Stolen names, SSNs, or entirely fabricated personas
National Multifamily Housing Council, 2023
$6k+
Average loss per identity fraud eviction
Lost rent, legal fees, and unit damage combined
National Apartment Association, 2024
0%
Of credit checks verify a live face
A credit score tells you nothing about who is really applying

How Settl stops both

0 documents accepted. Identity verified by camera, not paper.

Settl connects directly to Chase, Wells Fargo, Bank of America and 11,000+ financial institutions via Plaid. No PDFs, no uploads, no screenshots. And every applicant completes biometric identity verification (live selfie + government ID scan) before their report is issued. Banks don't lie. Faces don't lie.

Income: Direct from your bank via Plaid. Unfakeable
Identity: Biometric KYC. Live selfie + government ID
Documents: Zero accepted. Zero can be faked
Credit check (soft pull): Settl-initiated soft pull. No hard inquiry, no score impact
Get Settl Verified Passport
Why the full picture matters

A credit score is one signal.
Landlords need the full picture.

A credit score alone can't tell a landlord if you have money today, paid rent on time, or who you actually are. Settl answers every question — and includes a soft-pull credit check so landlords get the full picture in one verified report.

What landlords need to know
Credit Score Alone
Settl Passport
Does the applicant have money RIGHT NOW?
Doesn't show current balances — only past debt repayment
Cash reserves verified live from their bank. Not estimated — confirmed.
Did they pay rent on time?
Rent is never reported to credit bureaus
Rent payment history detected directly from 12 months of bank transactions
Is their income actually real?
Can't verify. You're trusting documents they provided
Bank-confirmed via Plaid. Employment confirmed via Argyle payroll. Zero PDFs.
Is their identity confirmed?
Not verified — anyone can claim a name
Government ID + biometric liveness check (Didit). Confirmed person, confirmed face.
Can the data be faked?
Pay stubs and bank statements are easily fabricated
Live bank feed + biometric ID. Impossible to fake.
Works for gig workers & internationals?
Thin-file or no US credit history = automatic rejection
Any income type verified — gig, 1099, self-employed, international
What financial data goes to the landlord?
Raw credit file. Landlord handles sensitive financial data.
Verification tier + rent ceiling only. No raw data, no landlord liability.
Is a credit check included?
Credit score only — nothing else
VantageScore 4.0 soft pull included — plus income, identity, employment, rent history, and background check.

Your landlord never sees your bank account.

When you connect via Plaid, Settl reads your income and generates your verification. Your landlord receives only the verified tier and rent ceiling — never your exact income figure, account numbers, balances, or any raw bank data. Your SSN is never shared.

✓ No exact income shared✓ No bank statements✓ No account numbers✓ No transaction history✓ SSN never shared✓ No hard pull

Soft pull only. Zero score impact.

Landlord-initiated credit checks trigger a hard inquiry and can lower your score. Settl's VantageScore 4.0 check is a soft pull, run by Settl on your behalf. Results go straight into your Passport. No hard inquiry. No score impact.

VantageScore 4.0 via TransUnion

Soft pull · zero score impact · included in every Settl Passport

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