By Brentnie Daggett, Rentec Direct
As a homeowner, your property is one of your most valuable assets—and unfortunately, it can also be an appealing target for scammers and fraudsters. Anyone who owns a home is susceptible to fraud, from title and deed scams to fake mortgage protection offers. And if you’re considering renting out your property, you may be entering an entirely new landscape of potential scams that can put both your home and your finances at risk.
Sadly, scams targeting homeowners and investors are no longer rare exceptions. Knowing how to take preventive steps, spot red flags and protect your personal information can save you thousands of dollars and thousands of hours of stress. Here’s how you can protect your property—and recover if the worst should happen.
Rental Listing Scams to Keep on Your Radar
There are many benefits to renting out your property, renting an adu or renting a room in your home. Unfortunately, it can also open the door to increased fraudulent activity—often disguised as legitimate tenant inquiries. These scams usually happen as a result of listing your property on public platforms like Zillow, Craigslist or Facebook Marketplace, where your property information is displayed to both genuine renters and bad actors.
Just recently in my hometown, I came across a legitimate rental listing advertising a two-bedroom property for $1,400—a fair market rate. Days later, I saw the same property, photos and description attached to a new listing advertised for just $800. In this case, the scammer was playing the role of the landlord, hoping to collect deposits or personal information from unsuspecting renters.
While this particular example targeted tenants, homeowners are just as vulnerable. Fraudsters posing as renters might attempt to pay with counterfeit checks, request to communicate outside of trusted platforms or offer above-market rent to establish false credibility.
It is important to note that even if you're not actively renting out your property, homeowners can still be targeted. Scammers can pull old photos from real estate sites or public records to create fraudulent listings. Being aware of this means you can report these listings if they happen and request their removal.
Here are a few of the most common rental scams to watch for as a homeowner:
- Fake Tenants: Scammers pose as prospective renters with compelling stories and plausible urgency. They may offer to pay a deposit before seeing the property in person or volunteer personal information upfront, often using stolen or fake financial details. These inquiries can seem legitimate, making it crucial to verify every lead thoroughly before taking any action.
- Phishing Attempts: Emails, phone calls or messages that appear to be from tenants, property management platforms or even financial institutions. The goal is to trick you into sharing sensitive information—like bank details, login credentials or Social Security numbers—that will then be used for identity theft or financial fraud.
- Too-Good-To-Be-True: If someone is offering to pay above market rent or prepay several months’ rent upfront, be wary of their intentions (no matter how tempting the offer may be). Scammers often use these tactics to pressure homeowners into acting quickly, bypassing standard screening safeguards like credit or background checks. Requests for unconventional payment methods are another red flag.
Protecting Yourself When Renting Out Your Home
All of this information might sound unsettling, but it shouldn’t scare you out of renting your property. Renting out your home can be a great way to generate passive income, and with a few smart precautions, you can ensure the process stays safe and legitimate.
- Tenant Screening: Thoroughly screening potential tenants is your first and most effective line of defense. Verifying an applicant’s identity helps reduce risks and protect your investment. Credit reports, background checks, eviction history and income confirmation are all essential steps to verify identity, financial responsibility and character. Take it one step further by interviewing prospective tenants and contacting previous landlords, employers or personal references for additional insight. If the information doesn’t add up or seems blatantly inaccurate, that’s an instant sign of trouble. Never skip these steps, no matter how friendly, responsive or financially stable a tenant appears in initial interactions.
- Avoid Wire Transfers and Unverified Payments: One of the most common traps in rental scams involves fake rent payments or requests for wire transfers. Only accept payments for deposits, monthly rent or other fees through secure, traceable methods—I always recommend online rent collection platforms. Never send or receive money from someone you haven’t vetted, and always wait for a payment to clear before handing over the keys.
- Use Secure, Trusted Platforms: Work with reputable platforms that actively monitor their channels to prevent fraud. Use reputable rental listing sites, official property management tools and built-in messaging systems whenever possible.
- Keep Personal Information Private: Be extremely mindful of the information you share during the rental process. Avoid publicly posting your personal contact information, home address or financial account information. Store and share sensitive documents securely, and share only what’s absolutely necessary to prospective tenants or platforms.
Reporting and Recovering From Fraud
Even with precautions, scams can still happen, and scammers are becoming more sophisticated every day. If you suspect fraud or have already been targeted, taking immediate action is essential to protect your property, finances and personal information.
Promptly report any incidents to your local law enforcement. Depending on the type of scam, you may also want to contact federal agencies like the Federal Trade Commission (FTC), Consumer Financial Protection Bureau (CFPB,) or the Internet Crime Complaint Center (IC3). Document everything and provide authorities with as much detail as possible. Correspondence, payment records and any identifying information can make or break your recovery. If you were working with a listing website or rental platform, reach out about their procedures for investigating and addressing fraud.
Taking these steps quickly and systematically can minimize your losses, limit the scammer’s reach and protect other homeowners from falling victim.
Protecting Your Investment
Most rental transactions are completely legitimate—don’t let a few bad apples spoil the bunch. With the right safeguards in place, you can protect yourself and your home—one of your largest investments and most valuable assets. Awareness is your best defense: educating yourself, staying alert to red flags and trusting your instincts will help you avoid scams and strengthen your overall property management practices. The goal isn’t to operate from fear; it’s to stay informed, proactive and confident in every rental decision you make.
