2024 Rently Survey: Rental Scams & Fraud Report

2024 Rently Survey:

Rental Scams & Fraud Report

Prevalence of scams fuels anxiety and anger among renters, who demand the industry offer more protection against sophisticated fraud.

The process of finding a new rental home or apartment is fraught with stress. With limited options, budget realities, location constraints and more, renters navigate an intense journey to find the perfect home—often leading them straight into the trap of a sophisticated scammer.

Rental scams have spiked in recent years. In 2023 alone, the Federal Trade Commission showed more than 10,000 rental scam cases opened, and the Better Business Bureau reported a 45% increase in rental scam complaints over the past two years.

As housing demand outpaces supply, new data from Rently shows how fraudsters exploit this desperation with alarming success. Using fake listings, fabricated identities, and high-pressure tactics, these scammers target vulnerable renters, leaving financial and emotional turmoil in their wake.

The pervasiveness of scams also undermines the credibility of trustworthy rental platforms, property management companies and landlords, creating a climate of suspicion that erodes confidence in the rental process as a whole.

In the face of highly sophisticated and evolving fraud, the message from renters is clear: they demand the industry offer more safeguards, technology and education to prevent others from experiencing this heartbreaking reality.

"As housing demand surges, scammers are exploiting renters’ desperation with alarming precision. Beyond the financial loss, these scams create lasting emotional harm, turning what should be an exciting step into a source of stress and heartbreak.”

— Rently CEO Merrick Lackner

Purpose of this Study

To understand the prevalence and impact of these scams, Rently partnered with the third-party survey platform Pollfish on the 2024 Rently Survey: Rental Scams and Fraud Report to explore the experiences and concerns of 500 U.S. adults who have rented an apartment, condo or house over the past five years and have either experienced or are aware of rental scams and fraud.

Key Findings

Renters fear scams are lurking around every corner: 93% of renters believe that rental scams are common, and 90% are worried about falling victim themselves.
Facebook is the epicenter of rental scams, luring victims with the perfect package: Among those who have fallen victim to a rental scam, 88% came across the fraudulent listing on Facebook, and 12% found it on Craigslist. Top features drawing them in were the ideal location, below-market price, and fast availability.
Scammers cash in fast: Before discovering that they were scammed, 70% of victims had already paid their security deposit, 59% paid their application fee, and 50% had paid their first month’s rent. 62% lost more than $500 from the scam, with nearly half (48%) losing more than $1,000 and 8% losing more than $5,000.
Pervasiveness of scams is shaking confidence in the rental market: Renters place the blame on rental platforms (40%) and landlords (23%), and 39% say they distrust online rental platforms.
Renters demand better protection and education: Renters expect more proactive prevention efforts from the broader rental industry, with 92% saying it’s “important” or “very important” to educate the public about rental scams and fraud, and the same amount saying it’s “important” or “very important” that landlords and property management companies utilize more technology to prevent fraudulent listings.

Renters Fear Scams are Everywhere

The threat of fraud looms large over the rental market, with 93% of renters polled perceiving rental scams as a common threat. Nearly half—46%—believe that such scams are “very common,” while only 6% view them as a rare occurrence.

"I felt betrayed and foolish after realizing the scam. Now, every listing feels like it could be a trap, and I constantly second-guess myself."

— Survey Respondent

Beneath this near-universal perception lies deeply ingrained anxiety that renters feel when searching for housing. 90% of renters fret about becoming a victim of a rental scam, with 46% saying they’re “very concerned” about this taking place. For many, the prospect of losing hard-earned money to fraudsters is compounded by the anticipated emotional toll. When asked how they feel when hearing about rental scams, 73% felt angry at the scammers, 63% were empathetic toward victims, and 51% were anxious about also becoming a victim.

When searching for a rental, how concerned are you about becoming a victim of a rental scam?

Scammers Cash In Fast

Social media’s role in facilitating rental scams cannot be overstated. Among victims of rental fraud, 88% came across the fraudulent listing on Facebook, far outpacing other platforms like Craigslist, which accounted for just 12%. Facebook’s dominance highlights its attractiveness to scammers, who leverage its wide reach, lax security, and low barriers to entry.

"Looking on Facebook, I almost got scammed on a deposit. The photos were perfect, and the price seemed fair, but something felt off."

— Survey Respondent

The fraudulent listings themselves were carefully crafted to attract renters suffering from a tight housing market. Discovering a listing in an ideal location drew in 57% of victims, while 55% were swayed by below-market prices, and quick availability sealed the deal for 52%.

What about the fraudulent listing was appealing to you?

By creating a sense of urgency, scammers were able to drain vulnerable renters of their savings and security, leaving lasting financial and emotional scars. Before realizing they had been defrauded, 70% of victims had already paid a security deposit, 59% had handed over an application fee, and 50% had even paid their first month’s rent.

“They pressured me to pay quickly and wouldn’t allow me to see the property until after payment. I should’ve known it was a scam.”

— Survey Respondent

What type of payment or sensitive personal information were you asked to submit before discovering it was a scam?

The financial losses are equally staggering. 62% of victims lost more than $500, with nearly a quarter losing between $1,001 and $2,000. For some, the impact was even greater—8% of respondents reported losses exceeding $5,000. These amounts are not easily recoverable for many households, compounding the stress of an already traumatic experience.

Confidence in Rental Industry Erodes

For many renters, trust in landlords, property management companies and rental platforms is waning due to the pervasiveness of scams, creating a climate of suspicion that erodes confidence in the rental process as a whole. 39% of renters claim to distrust online rental platforms, with 27% saying they “only somewhat” trust the platforms, and a mere .6% saying they “completely trust” the platforms.

"After being scammed, I don’t trust rental platforms at all. They should be doing more to protect people like me from losing everything."

— Survey Respondent

When asked who should be responsible for preventing rental scams, 40% pointed to rental platforms, 23% said landlords, 19% said renters themselves, and 17% said government authorities should shoulder the burden.

Who do you think is most responsible for preventing rental scams?

Eager for protection from this looming threat, renters expressed overwhelming support for measures aimed at safeguarding the rental process. Technology plays an increasingly prominent role in crime prevention, as well as reassurance to vulnerable individuals that every possible step has been taken. 92% of renters said it’s “important” or “very important” that landlords and property management companies utilize more technology to prevent fraudulent listings.

Renters Demand Better Protection and Education

How important is it to you that landlords and property management companies utilize more technology to prevent fraudulent listings?

Within property listing platforms, renters said they would be most assured by those with landlord identity verification (85%), secure payment processing (70%), past tenant reviews (66%), real-time property viewing (65%), and photo verification (59%).

The resources and tools renters believe will help them avoid rental scams included a mandatory verification process for all rental listings (73%), community reviews or ratings of landlords and properties (54%), scam detection tools or app integrated into rental platforms (48%), and government hotlines to report or verify suspicious listings (37%).

Renters see room for improvement when it comes to educating consumers. 77% would like to see alerts for high-risk areas or platforms, 65% desire tutorials on how to verify listings, 64% would like reviews and forums for sharing scam experiences, and 56% requested articles or guides on spotting scams.

Conclusion

Findings from the 2024 Rently Survey: Rental Scams and Fraud Report highlight vulnerabilities in the rental market and the profound impact of fraudulent activity. From financial losses to emotional tolls, renters are left feeling vulnerable and unprotected.

But, there is hope. Renters are clear in their expectations for robust technology, proactive efforts, and public education–steps that play a pivotal role in rebuilding trust and reducing the likelihood of fraud. Industry stakeholders have the opportunity to act decisively and restore trust in the rental process.

"Rental fraud isn’t just a financial crime; it’s a direct attack on the trust and stability that renters depend on during one of life’s most critical decisions,” said Rently CEO Merrick Lackner. “Our industry must lead the charge in outpacing scammers with stronger safeguards, transparency, and education, ensuring every renter can search for a home without fear of exploitation."

Additional Resources

Learn more about rental scam prevention through the following resources:

As a Renter, How Can I Protect Myself From Scams?