Finding a place to rent is stressful enough without having to wonder if the listing you're looking at is even real. But rental scams have become common enough that most renters now approach an unusually good deal, or an unusually eager landlord, with some suspicion, and that instinct is usually the right one.

Landlords face a version of the same problem from the other side: a promising applicant who signs a lease, pays a deposit with a bad check, or backs out after a unit has already been taken off the market for them.

Common Rental Scams

The listing that doesn't belong to the "landlord." A scammer copies photos and details from a real listing (sometimes one that isn't even for rent) and posts it elsewhere at a slightly lower price. They ask for a security deposit or first month's rent before you're able to see the unit in person, often citing being "out of town" or "unable to meet."

The too-good-to-be-true price. A unit is listed well below the going rate for the area, designed to generate urgency and get a deposit sent quickly before a renter has time to think it through or verify anything.

The application fee scam. A fake listing collects "application fees" or "processing fees" from multiple interested renters for a unit that isn't actually available, sometimes one that doesn't exist at all.

The bad-check tenant. From the landlord's side, an applicant provides a security deposit by check or money order that later bounces, after the unit has already been taken off the market and the applicant has moved in or received keys.

The disappearing landlord. A deposit is sent to secure a unit, and the "landlord" stops responding entirely once the money has cleared, sometimes reappearing weeks later claiming the deal fell through, sometimes not reappearing at all.

Why Rentals Are Especially Vulnerable

Nearly every one of these scams depends on the same thing: getting money sent before the other party is in a position to verify anything. A renter who hasn't seen the unit has no way to know if it's real. A landlord who hasn't verified funds has no way to know if a deposit will actually clear. Both sides are being asked to act on trust alone, often under time pressure, in a market where good units and qualified renters both move fast.

Verifying Before the Lease Is Signed

This is the specific gap VeraHold is built to close. Instead of a renter wiring a deposit to a landlord they've never met, or a landlord accepting a check with no way to confirm it's good, either side can request that the other place an Authorization Hold: a temporary authorization on a payment method for the agreed deposit amount, similar to how a hotel holds funds on your card at check-in. No money moves. The renter keeps full control of their money until the lease is actually signed.

The landlord gets real confirmation that the agreed funds were available before taking a unit off the market or preparing to hand over keys. The renter gets to see the unit, meet the landlord, and confirm everything is legitimate before a single dollar changes hands. The deposit itself is still paid the way it normally would be (check, transfer, however the lease specifies) once both sides are ready to move forward.

To be clear about the limits: VeraHold doesn't verify that a listing is real, that a landlord actually owns or manages the property, or that an applicant will be a good tenant. Those still require the same due diligence any rental should involve. What it verifies is narrower: that the agreed deposit amount was actually available at the moment the agreement was made. That single fact helps address one of the biggest risks in rental scams: being asked to send money before you've had the chance to see the property and meet the other party in person.

A Few Habits Worth Keeping Regardless

Never send a deposit or application fee for a unit you haven't seen in person or verified through a live video walkthrough at minimum.

Confirm the person you're dealing with actually owns or manages the property. Ask for ID, check property records, or search the address alongside the landlord's name.

Be skeptical of any listing significantly below market rate for the area.

Landlords: don't take a unit off the market or hand over keys until a deposit has actually cleared, not just been sent.

If someone says they're "out of the country" or "can't meet in person" for a local rental, treat that as a serious red flag, not an inconvenience to work around.

A good rental deal is still out there, real, and worth pursuing. It just requires a little more verification up front than it used to.

VeraHold helps both parties in a private transaction verify that agreed funds are available before meeting in person, without either side sending money first. [Learn how VeraHold works →]

Apartment and Rental Scams Are Rising — Here's How to Protect Your Deposit

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