A new wave of real estate scams is causing headaches for both landlords and renters. Scammers are using stolen identities or fake documents to rent apartments and homes, sometimes collecting thousands of dollars in rent without ever living there.
How the Scam Works
There are two main types:
- First-party fraud – Renters use their real identity but fake pay stubs or bank statements to qualify for an apartment.
- Third-party fraud – Scammers steal someone else’s identity or create a fake persona to secure a rental. They might live in the home, sublet it illegally, or even use it for criminal activity.
These scams are becoming more common because leasing has moved online, making it easier to hide behind screens. AI tools also make it simpler to create realistic fake documents.
The Impact on Honest Renters
As landlords and property managers fight fraud, honest renters face stricter screening, longer application processes, and higher fees.
Apartments tied up in eviction cases due to fraud are temporarily unavailable, reducing supply and potentially driving rents higher.
Tenant advocates warn that while fraud exists, the bigger issue is affordability. Rents have risen over 25% since 2020, and many Americans spend more than 30% of their income on housing.
What You Can Do
- Be cautious with your personal information when applying for a rental.
- Use reputable property management companies.
- Expect more documentation and verification in your applications—but know your rights.
The rise of these scams shows that while technology makes renting more convenient, it also makes it easier for fraudsters to create chaos in the housing market.