Rental Scams Are On The Rise — How You Can Protect Yourself

At Key Property Management, we’ve noticed something worrying: rental scams are getting more sophisticated and more common. And they don’t just hurt desperate renters — landlords and investors are targets, too. Knowing the threats and putting preventive measures in place isn’t just smart: it’s essential.

Here’s a breakdown of what’s going on, why it’s getting worse, and how both tenants and property owners can defend themselves — based on a recent article from BiggerPockets.

What the Data Tells Us

Some of the key findings from BiggerPockets and related sources [Link]:

• 93% of landlords have encountered fraudulent documents from applicants: fake employment letters, forged pay stubs, altered credit reports. 

• In 2024, approximately 6.4% of rental applications were fraudulent. 

• Fake listings are increasingly common. Scammers post properties they don’t own, or list homes already rented out, just to collect deposits or rent. 

• Losses are real: many victims lose at least $1,000, and some lose $5,000+. 

• Housing demand spikes, especially in tight markets, are feeding the fraud machine. Desperation makes people less cautious. 

  
  

So it’s not just “one-off” schemes or dumb luck — it’s a growing, systemic threat.

Common Rental Scam Tactics

Here are some of the typical scams to watch for, especially if you manage rentals or are looking for one:

1. Fake Landlords / Listings

   A scammer posts a property they don’t own (or that doesn’t exist), collects deposits or first month’s rent, and disappears. Photos might be stolen, address might be copied, etc. 

2. Falsified Applications / Income Claims

   Applicants submit fake employment letters, altered pay stubs or even credit reports to look more qualified than they really are. BiggerPockets reports that nearly all landlords surveyed have seen this kind of fraud. 

3. Overpayment / Change Request Scams

   Tenant (or “prospective tenant”) overpays by check or transfer, then requests part of the payment back. Later, the original payment bounces or is invalid. Scammer pockets the refund. 

4. Subleasing / Unauthorized Leasing & Re-Listing

   Someone rents a place or gets access, then re-lists it (often at a lower rate) without the owner’s knowledge. They collect deposits from multiple people. When problems arise, they’re long gone. 

5. Misuse of Identity / AI–Enhanced Fraud

   Using technology to create realistic forgeries. From fake documents to manipulated data, even detection software is being challenged. 

Why It’s Getting Worse

• Tight housing markets mean people are more likely to rush, skip due diligence.

• Better tech for scammers — document manipulation, AI tools, access to identity theft services.

• Less regulation or oversight in certain advertisement channels: social media, Craigslist, Facebook Marketplace, etc. These are harder to police. Bigger sites (e.g. Zillow, Apartments.com) tend to have more safeguards. 

• Some landlords/investors are trying to fill vacancies so fast they weaken vetting processes. That opens the door. 

What Landlords / Property Managers Can Do to Protect Themselves

Here’s where Key Property Management can help — and what you as a property owner should insist on when selecting a property manager in Las Vegas.

1. Rigorous Screening & Verification

   • Always verify identity: driver’s license, government ID.

   • Require proof of employment/income through verifiable channels: pay stubs, tax returns, bank statements.

   • Use credit and background checks. Don’t rely on just what the applicant gives you.

   • Use document authentication tools to detect forgeries. AI-aided software is improving. Key PM uses sophisticated verification tools to detect fraud. 

   
   

2. Clear Lease / Contract Policies

   
   

   • Include clauses about subleasing, re-renting, or unauthorized assignments.

   • Define acceptable payment methods. Specify what is prohibited (e.g. gift cards, wire transfers to unknown accounts).

   • Build in remedies if fraud is discovered after the lease is signed.

   
   

3. Monitor Listings & Protect Your Brand

   
   

   • Keep an eye online: check listing sites and social media regularly for postings using your address or photos.

   • Watermark your photos — it makes stealing material harder.

   • Consider using licensed agents or property management companies with experience and good reputation.

   
   

4. Use Secure Payment & Transaction Methods

   
   

   • Never accept large upfront payments via non-trackable methods.

   • Use escrow or platforms that allow verification.

   • Always get receipts, keep records.

   
   

5. Insist on In-Person or Verified Virtual Meetings

   
   

   • Meet the prospective tenant (or their representative) in person if possible.

   • If remote, use video calls, confirmed IDs, and verify addresses.

   
   

6. Take Time — Don’t Rush to Fill Vacancies

   
   

   • Rushing is when mistakes happen. Thorough screening takes time.

   • It can cost you more to recover from a bad tenant (evictions, damages, lost rent) than to leave a unit vacant a bit longer with proper vetting.

   
   

7. Stay Informed & Adjust As Scams Evolve

   
   

   • Scammers change tactics. Stay current on fraud trends.

   • Use tools / services that update their detection algorithms.

   
   

What Renters / Prospective Tenants Should Look Out For

Because renters can get scammed too, here are red flags to watch out for if you’re looking for a place.

• Asking for large sums up front before lease or meeting.

• Landlord refuses to meet in person or show the property in person.

• The rent is “too good to be true” — way below market rate.

• The landlord asks for non-traceable payment methods only (wire, gift cards, cryptocurrency).

• Documents seem off: spelling mistakes, format oddities, unprofessional layout.

• Listing appears across multiple platforms with different contact info or mismatched photos and addresses.

Why This Matters for Key Property Management and Our Clients

• Our reputation depends on being safe, trustworthy, and fair. If one of our units gets mis-listed or misused, it reflects badly on us.

• Owners’ properties are assets — we want them protected. Fraud / tenant default / damage can cost thousands.

• For renters, offering secure, transparent processes attracts better tenants and reduces liability.

Final Word

Rental scams aren’t a “maybe” risk anymore — they’re real, evolving, and hitting both sides of the market. But you can beat them:

• Be diligent in screening

• Insist on secure, verifiable transactions

• Don’t rush

• Keep learning

At Key Property Management, we’re committed to staying ahead of these risks so that our property owners don’t wake up one morning with a big legal or financial mess. If you have any questions or would like to speak with one of our property managers, contact 702-914-6567 or contact@keypm.com