How Rental Scams Work
Scammers realize that finding the right rental house can be difficult work, and a seemingly good deal is hard to leave behind. They’ve been known to game some rental websites, classified listings boards, and social networks. The takeaway: when you’re looking for a rental, it’s a caveat renter, or in other words: renter beware.

Here are some red flags to look out for

Hijacked Ads
The scammer will copy a legitimate listing, modify the contact information, and then place the modified ad on another site for a price well below market value. The altered ad may still show the name of the person who posted the original ad. 

The person showing the home is not the owner or licensed agent.
The scammers gain access to a home lockbox during a self-showing appointment, make a copy of the house key, then guide the potential victim through a home tour, presenting themselves as the property managers, agents, or claim to be helping someone else rent the property. In some cases, the scammer turns the keys over to the victim and walks away after collecting the victim’s money and leaving them in a home they have no legal right to occupy. It took days before it was clear they’d been scammed.

Phantom Rentals
Scammers make up listings for places that aren’t for rent (using an old for-sale or lease posting on the internet) or don’t even exist and attempt to draw the victim in with the guarantee of a low lease or other perks.

Asking for Security or Reserve Deposit upfront  
The scammer asks for a security deposit or first month’s rent before you’ve met or signed a lease. If the scammer will not have an official lease agreement or will not make it available to you, then you’re probably being scammed. A lease contract is a must when renting any property, even if it’s short-term.

How to Avoid and Protect Yourself from Rental Scams
Do your search for a home utilizing reputable sites.
Scammers like to use sites that are not strictly monitored, like Craig List, where they can easily list properties with no one verifying their legitimacy. Popular sites such as Zillow, and Rent.com claim they control and validate listings, so proceed with caution.

Don't bite on the Price Bait.
We all like to find a deal; unfortunately, rentals never come half off, so as the old say, "If it sounds too good to be true, it probably is. “ Legitimate property owners and agents understand the fair market value of the homes they offer and will try to set the rent price close to the home’s market value. Scammers know they have a very short window of time to fraudulently use the property, so they list it deeply discounted, sometimes for as much as $500-1,000 less than what similar homes are listed for.

Read carefully
Beware of unprofessional, overly simple ads with grammatical and spelling errors, or overuse capital letters. They will try to lure you in with statements like "no credit or background check" - don't fall for it! There is no such thing! Legitimate property owners and managers will always perform due diligence on potential residents, which includes running credit and background checks. Make sure the rental applications you receive look professional in appearance and free from typos. Often scammers are after your personal information like social security numbers, bank account information, and more, so they will ask you to fill out fake applications while making the process seem legitimate.

Never Pay Cash
In most cases, the scammers will make victims complete fake rental applications and then ask for security deposits, first and last month’s rent, etc., often in cash or wired money. Don’t pay in cash; NEVER wire money as a deposit or payment for the first or last month's rent. Wiring money is the same as giving cash; you can't get a refund, even if you find out the offer was a fraud.

Check on Credentials from Your Point of Contact
Whom are you talking to? If you are dealing with a person claiming to be the owner, you should ask for the homeownership documents proving that you’re dealing with a person with all the rights to rent out this place. You can also check his name on public records (state tax records are free online). If you are talking with someone who said he/she is a real estate agent or a property manager, ask them for the company they belong to and ask to see their license. Verify that they work there and try to see if their picture matches the person you met.

The best, most reliable way to protect yourself and add another layer of safety is to have a licensed real estate agent work with you. An excellent experienced real estate agent can help identify if a rental is legit or a scam.
 

What to Do if You Believe You Become a Victim of a Rental Scam:
- Report immediately to your local law enforcement agency
- Report it to the FBI https://www.ic3.gov/default.aspx
- Report it to the Federal Trade Commission (FTC) 
- Contact the website where you found the home post and report the fraudulent posting to them.

When reporting scams, try to collect as much information as possible. Names, email addresses, vehicles used, physical descriptions, and license tag numbers may help law enforcement stop scammers. In case you wired money, be ready to provide information about the sender like name and address, the location the wire was sent from, the date and amount of the transfer, transfer fee, date and actual location of the receipt, name of the receiver, if any information recorded regarding the receiver’s identification, the reference number for the transfer, and the details of the nature of the issue.