What steps should a renter take to avoid rental fraud before signing a lease?
View the property in person, confirm the landlord's ownership in public records, pay the deposit by traceable bank transfer with a signed lease in hand, and never pay in cash or via wire transfer before signing.
Last reviewed: 10 June 2026
Explanation
Rental fraud causes victims to lose both a deposit and temporary housing simultaneously — among the most disruptive financial crimes for individuals and families. Most victims could have avoided the loss with a short chain of verification steps before any money changed hands.
Before agreeing to any rental terms, verify that the person you are dealing with actually controls the property. For an individual landlord, check the property ownership via county assessor records (US) or Land Registry (UK) and confirm the name matches the person you are communicating with. For a letting agent, verify the agency name on a professional regulatory body's website — in the UK, this is ARLA Propertymark or NAEA Propertymark; in the US, check the state real estate licensing board.
See the property in person before paying anything. Seeing the inside of the property confirms it is real and accessible, and meeting the landlord or agent in person allows you to assess whether they have the keys and knowledge of the property you would expect. If they are reluctant to meet at the property or make excuses about access, do not proceed.
Never pay a deposit before having a signed tenancy or lease agreement in your hand. A verbal agreement is not enough. The agreement should include the landlord's full name and address, the agreed monthly rent, the deposit amount and the deposit protection scheme it will be held in (required by law for most assured shorthold tenancies in the UK), and the notice period for both parties. Keep a copy and keep the bank transfer receipt as your record of payment.
Common red flags
- Landlord or agent cannot or will not meet at the property
- Name on the lease does not match the owner's name in public records
- Pressure to pay deposit immediately before seeing the property or signing a lease
- Request to pay deposit in cash or via a payment method with no trace
- Rent significantly below comparable properties in the same postcode or zip code
- Lease agreement is vague, non-standard, or agent refuses to use a standard form
What to do now
- Check property ownership at the county assessor or Land Registry before meeting
- Arrange and complete an in-person viewing before any payment is made
- Sign a proper tenancy or lease agreement before transferring the deposit
- Transfer deposit via bank transfer — keep the payment receipt
- Ensure UK deposits go into a recognised protection scheme (Deposit Protection Service, mydeposits, TDS)
- Report rental fraud to the FTC, your local police, and the platform where the listing appeared
Frequently asked questions
What is a deposit protection scheme and is it legally required?
In England and Wales, landlords must protect tenancy deposits in one of three government-approved schemes (DPS, mydeposits, TDS) within 30 days of receipt. If a landlord does not, you can apply to court for compensation of one to three times the deposit amount. This requirement helps prevent landlords from simply keeping deposits without justification.
Is it safe to send a deposit before signing the lease if I trust the agent?
No. Do not transfer any money — deposit, holding fee, or rent in advance — before you have a signed lease in your hands. An honest agent will not require payment before documentation is complete; a dishonest one is counting on your trust to take payment without legal obligation.