BiggerPockets Daily Rental Scams Are Up—Here's What Investors Should Know
Oct 7, 2025
Rental scams are increasingly sophisticated, with landlords facing challenges from forged pay stubs to fake listings. Data reveals alarming fraud rates across regions, particularly in the South. Learn about shocking real-life scams and how AI complicates document verification. Key protective steps include strengthening tenant screening and using traceable payments. Awareness of overpayment scams and managing subleasing can further shield landlords from potential losses. Stay informed to safeguard your investments!
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Fraud Has Become Ubiquitous
- Rental scams have become far more sophisticated and widespread, especially with AI-enabled forgeries.
- 93% of landlords have found fraudulent documents and 84% saw false income or employment claims.
Smaller Landlords Are Especially Vulnerable
- Snapped estimates 6.4% of rental applications in 2024 were fraudulent, signalling measurable scale.
- Mom-and-pop landlords face outsized risk because they lack large managers' financial buffers.
Decades-Long Scheme And Fake Listings Spike
- A Massachusetts scam ran for two decades and defrauded landlords of over $100,000.
- Fake listings on sites like Facebook Marketplace caused a 45% increase in FTC and BBB scam complaints.