As Los Angeles residents are being displaced from their homes amid the catastrophic Palisades and Eaton wildfires—among others— they are also facing greater risk of rental scams. Renters on the hunt for a place to stay while their homes are repaired, or in many cases completely rebuilt, are now being met with the possibility of facing fake listings and fake identities, both tactics employed by fraudsters.
A survey of U.S. renters shows that many fear being the victim of a rental scam, while many have already been a victim of the scheme. In fact, “93 percent of renters believe rental scams are common, and 90 percent worry about becoming victims,” a study by Rently reports. Furthermore, almost 90 percent of scams “involve fraudulent listings on Facebook, luring renters with below-market prices and fast availability and 62 percent of victims lost over $500, and nearly half lost more than $1,000.”
The scamming crisis has skyrocketed in the midst of many L.A fire victims searching for temporary homes. Amid the chaos of recovery and rebuilding, it can be difficult to spot the scam.
“As housing demand surges, scammers are exploiting renters’ desperation with alarming precision,” explained Rently CEO Merrick Lackner. “Beyond the financial loss, these scams create lasting emotional harm, turning what should be an exciting step into a source of stress and heartbreak.”
Signs of a potential rental scam
If you think you might be the victim of a potential rental scam, there are a few signs to look out for. If you are asked to wire money, consider that you might be getting involved in some sort of fraud. While you may think wiring money is acceptable to pay your security deposit, first month’s rent or any sort of fee, there is no reason to do it this way. Wiring money is the same as sending cash in an envelope—once it is sent, there is no way to retrieve it.
Another sign that you might be getting scammed is if you are asked for a deposit before you sign a lease or meet the landlord. You should never send money to a landlord, property manager or rental company before you visit the place you are renting—always ensure that the person or company you’re engaging with is the real deal.
If a landlord says that they cannot get you the keys to a new place because they are out of the country, this could also be a tip-off that you are involved in a rental scam. Never send money to someone overseas. You never know if the person is legitimate, if the rental property is actually where the listing says, or if the vacant home even exists. Be aware of what the landlord says and how to handle the situation.
“Rental fraud isn’t just a financial crime; it’s a direct attack on the trust and stability that renters depend on during one of life’s most critical decisions,” Lackner says. “Our industry must lead the charge in outpacing scammers with stronger safeguards, transparency, and education, ensuring every renter can search for a home without fear of exploitation.”
What to do if you are involved in a rental scam
If you think you might be a victim of a rental scam, don’t ignore it. Report the scam to your local law enforcement as well as the Federal Trade Commission (FTC). Make sure to be aware of these potential signs to protect yourself from a rental scam.
