While Craigslist can offer some legitimate housing rental listings, its open nature makes it a hotbed for scammers, especially when targeting vulnerable groups like low-income families or those with poor credit.
These scammers are sneaky… and clever… and know exactly what they are doing to steal money from unsuspecting victims. This guide covers the most common Craigslist housing rental scams and offers tips to protect yourself from falling victim to rental fraud.
Common Craigslist housing rental scams
- Copycat apartment rental scams
- The house that’s not even for rent scam
- “Free” house scams
- The “rent to own” scam
- Section 8 and low-income housing scams
- Sublet scams
- Rental application scams
- Roommate scams
- Short-term rental scams
How to spot a scammer on Craigslist
- Prices are too good to be true
- Requests for money upfront
- Typos, poor grammar, and excessive punctuation in listings
- High pressure
- Photos appear in other listings
- Lister won't schedule a showing
- There is no tenant screening process
- Lister refuses to answer basic questions or speak on the phone
- The credit check is “free”
- You can’t verify the lister’s identity
- Unsecured payment methods
Scammed by a Craigslist rental ad? What to do
Alternatives to Craigslist for affordable housing
- Working with a housing counselor
- National Low Income Housing Coalition (NLIHC)
- Apartments.com
- Zillow
The bottom line: are Craigslist apartments legit?
Common Craigslist housing rental scams
Here are some of the common scams that you might see on Craigslist. It’s essential to be aware of these, as they are more prevalent than you might think. According to the FBI’s Internet Crime Complaint Center (IC3), in 2023 alone, 9,521 people reported losing $145,243,348 due to online rental scams.1
Copycat apartment rental scams
The apartment rental scammer copies postings from legitimate real estate websites and posts them on Craigslist after slightly altering them, usually featuring an unbelievably great price. They will have photos of an adorable place with the desired amenities. The goal is to get you to pay a rental application fee and/or security deposit without showing you the apartment.
Kevin Vitali, a seasoned Massachusetts realtor, is too familiar with this scam. “In the past, I have had Craigslist scammers stealing listing photos of a house I have had for sale online to use as a fake rental. This has happened many times over an 18+ year career as a listing agent,” he writes on his real estate website.2
Hawkins has experienced this scam firsthand, when a family member shared a listing they were interested in with her. “ The price was way below market rate for the neighborhood, which raised a red flag,” she shares. “I was able to do research and find the legitimate listing which had been duplicated.”
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Red Flags:
- The rent is much lower than market rates.
- You Google and find that ads come up for the same address, but with a different owner or rental company name. Per the FTC, that’s a clear sign you’re looking at a scam.3
Victim of Craigslist Apartment Scam
byu/BrooklynMaddie inScams
The house that’s not even for rent scam
Reddit user “Independent-Ad1732” posted that she found her own house listed for rent on Craigslist—but it’s neither for rent nor for sale!
Meanwhile, Tracey Hawkins, a real estate safety expert and former realtor, says it’s important to discuss generative AI's role in rental scams. “Criminals are using AI tools like ChatGPT, CoPilot, Gemini, and Midjourney to create deep fakes of properties,” Hawkins, who hosts the award-winning real estate safety podcast, “Drive With NAR: The Safety Series,” says. “Criminals can create images of properties from whole cloth and create listings on Craigslist and even platforms like AirBnB to advertise them. They don't have to hijack real property photos and listings anymore—it's quite frightening if people don't know to question not only the listing description but also the images!”
Red flags, according to the FTC:
- The fraudulent advertisements may feature unusually low rents or exceptional amenities.
- When you request a viewing, the scammer might claim to be abroad or provide another excuse for not showing the property, often pressuring you to make a quick decision.
- The scammer may instruct you to send money via wire transfer, gift card, or cryptocurrency for the application fee, deposit, or first month's rent.
“Free” house scams
In the ‘free’ house scam, the scammer offers a “free” house or claims the property is available for a low fee due to some hardship they're facing. They'll request a negligible processing or administrative fee. In reality, the house doesn't exist or belongs to someone else.
Hawkins says this scam isn’t as common as the others, but it does still exist. “Consumers are skeptical of getting something, especially a home or apartment, for free,” she says. “Giving away something of value doesn't ring true if property owners are facing hardship. So, any offer should be made cautiously, especially if asked to pay upfront. The so-called owner will disappear once they get the money.”
Red Flags:
- Landlord is offering a “free” house for a minimal fee.
- There is no way to verify the property belongs to the advertiser.
- The advertiser is pressuring you to act quickly without proper documentation.
Learn more about free and affordable housing from trusted sources in this post.
The “rent to own” scam
Lance Guanella, Lead Housing Counselor at Southwest Improvement Council, says this is one of the most common scams he sees. A rent-to-own agreement is a unique property arrangement where the current homeowner commits to selling you their property at a predetermined price in the future. Under this agreement, a portion of your monthly rent payments is applied towards your eventual down payment on the house.
Rent-t0-own allows you to gradually build equity in the home while renting, potentially making homeownership more accessible. But the FTC warns, “these deals can be risky — and even flat-out scams.”
Interested in owning? See what mortgage you qualify for.
Also, learn more about legitimate first-time homebuyer grants and tips for buying a house as a single mom.
The report “Rent-to-Own the American Dream: The Promises and Perils of Alternative Home Financing,” explains that predatory rent-to-own deals often target vulnerable populations, particularly low-income communities and communities of color. The report, published by TechEquity Collaborative, states that these unfair deals exploit the dream of homeownership to lure people into unfair agreements.4
The FTC outlines these common complaints and issues with a bad rent-to-own situation:5
- The “seller” doesn’t really own the property
- The owner hasn’t paid property taxes
- The house is in terrible shape, or has issues like lead or asbestos
- Promised fixes aren’t made after a contract is signed
- The house is getting foreclosed on
“If someone is considering a rent to own option, it’s best to have a real estate attorney review the contract before signing,” Guanella advises. He explains that the attorney will make sure that legal ownership of the property would be transferred to you at the conclusion of the rent to own agreement, and that the agreed upon monthly rent amount that would go towards a down payment goes into a type of escrow account.
Red flags, per the TechEquity Collaborative report:
- Misleading marketing: Deceptive advertisements promising easy homeownership without credit checks or explaining risks.
- Unfair contract terms: Complex contracts with hidden clauses that favor the seller and increase the risk of buyer default.
- Financial traps: Excessive upfront fees, inflated purchase prices, or above-market rent payments.
- Lack of transparency: Unclear explanations of payment applications and vague property maintenance responsibilities.
- Legal ambiguities: Contracts that fail to establish clear buyer rights or use alternative financing methods with limited regulation.
- Property condition issues: Undisclosed poor property conditions or unfair shifting of repair responsibilities to the buyer.
- Eviction risks: Terms that facilitate easy eviction, potentially resulting in the loss of all invested money.
- Limited buyer protections: Absence of standard homebuyer safeguards, including professional inspections and appraisals.
Section 8 and low-income housing scams
Scammers target individuals seeking affordable housing, such as Section 8 assistance. They pretend to offer low-income housing or claim to have access to a Section 8 voucher for a fee. They promise to help you bypass government procedures for a price, but there's no follow-up after payment.
Hawkins says this kind of scam may be underreported, given “the long waiting list for Section 8 properties in many places, and the limited financial resources of those often with children who need to rent.”
The solution? “To raise awareness of how the programs work,” says Hawkins. “All applicants should know to contact the Section 8 and housing departments directly, and understand that the governmental programs don't typically contract with private businesses to charge a fee to apply for these services.”
Another important thing to keep in mind: the Section 8 voucher program is often targeted by scammers who create deceptive websites that appear legitimate, complete with official-sounding names and logos, per the FTC.6 These fraudulent sites typically request fees and personal information but provide no actual services, potentially leading to financial loss and identity theft.
In reality, the authentic Section 8 program is administered by the U.S. Department of Housing and Urban Development (HUD) through local housing authorities. To legitimately apply for a Section 8 voucher, individuals should directly contact their local housing authority to inquire about joining the waiting list lottery in their area, which is always free of charge.
Red Flags:
- Demands for upfront fees to “help” you qualify for Section 8 housing.
- Fees to be “added to a waitlist.” The National Low Income Housing Coalition states: “State and local housing authorities do not charge fees to be added to a waitlist, so a red flag is evident when a social media post seeks payment through reloadable debit cards, gift cards, wire transfers, or cryptocurrency.”7
- Promises of bypassing government procedures for a price.
- Listings for rental properties that don't actually exist.
- Requests for personal information, especially Social Security numbers, before providing services.
- Any request to wire money or pay with a prepaid card for Section 8-related services.8
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Sublet scams
A scammer pretends to be the current tenant and offers to sublease a property they don't own. After taking your money, they either disappear or continue subleasing the exact property to multiple victims.
Reddit user “doublemerde” wanted to sublet an apt in Columbus, Ohio and found a good deal on Craigslist. After sending the payment, the landlord claimed it hadn't gone through. Concerned, the renter decided to do some research on the house.
“I found the listing agent for the house (it was for sale, a red flag) who stated this person was not on any kind of lease. I also did an online search and contacted the ‘leasee’ via Been Verified. The real person then told me that their identity has been used in at least a dozen scams on Craigslist for sublets,” they write.
Craigslist Sublet Scam
byu/doublemerde inScams
To avoid this scam, ask for proof that they own or rent the property (such as a lease agreement) and insist on meeting them in person before sending any money.
Helene Raynaud, Money Management International’s Senior Vice President of Housing Initiatives, advises renters to always check the property in person.
“If you can’t, find a friend or contact a local real estate agent who might agree to check the place out for you,” she says.
Red flags:
- Someone claiming to sublease a property without proper documentation.
- The advertiser is unwilling to meet you or provide proof of tenancy.
Rental application scams
The advertiser will ask for a rental application fee or security deposit before you sign a lease or even see the property. They often vanish after receiving the payment, leaving you out of money.
Real estate expert Melissa Spittel says that legitimate rentals require you to pay an application fee and/or credit check fee upfront. After you’re approved and ready to sign the lease, you’ll need to provide a security deposit (typically equivalent to one month’s rent) along with the first month’s rent.
She cautions that if a landlord asks you to pay anything other than an application fee and a credit check fee before even seeing the place or signing the lease, it’s most likely a scam, and you should be highly suspicious.
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Roommate is scamming people
byu/SnooDingos5807 inScams
Red flags:
- Requests for application fees before showing the property.
- No formal lease agreement is provided after the application.
- Payment methods are non-traceable.
Roommate scams
The roommate scam mainly targets the person with the apartment looking for a roommate on Craigslist. The scammer will reply to your ad and show interest in renting the room immediately. They’ll then ask you for your personal details, such as full name, email, and exact physical location. Next, the scammer will send you a money order or check for an amount much higher than the rent/deposit and instruct you to cash the check and send them back the extra money they sent by “mistake.” A few days later, the check will bounce, and you will be out of whatever amount you sent them.
Craigslist Roommate Scam
byu/Eshlau inScams
Red Flags:
- The potential roommate seems overly eager or too trusting.
- Refusal to provide personal identification or references.
- Wants to send payment before meeting in person or seeing the room.
Short-term rental scams
Scammers post listings for short-term vacation rentals on Craigslist, often in prime locations. The rental prices will be much lower than other properties in the same area. The ‘owner' will insist the rental is in high demand and pressure you to pay a deposit to book the property. Once you send payment, the scammer disappears.
Red Flags:
- Last-minute availability for a prime location.
- The rental price is significantly lower than similar listings.
- The host refuses to meet or provide a way to verify the property.
How to spot a scammer on Craigslist
Ultimately, the best advice is to trust your gut, says Hawkins.”If something feels wrong or off, believe the feeling, and don't talk yourself out of it, no matter how much you want the house or apartment.”
While Craigslist scammers are getting smarter, you can spot and outsmart them—look out for these red flags.
1. Prices are too good to be true
Found your dream rental at half the market rate? Sorry to kill your enthusiasm, but a property priced well below the going market rate in your area is an immediate red flag. “If it sounds too good to be true. It is. Full stop,” says Hawkins.
Is this a scam? It looks on the border of “too good to be true”. I'm looking for an apartment on Craigslist and the rent is good (not unbelievably good) but with the asking to add my info to some website, it makes me question… The link takes me to TransUnion (that's what it says it is)
byu/mustard138 inScams
2. Requests for money upfront
“Asking for upfront application fees or a security deposit and rent without the opportunity to see the property,” are major red flags, says Guanella. “The prospector renter should never send money without meeting the landlord or property manager in person.” In Denver, he notes, landlords must be licensed to help reduce the risk of working with a scammer.
‘Licensed’ Property manager from Craigslist wants us to pay security deposit and 1st months rent before even seeing the property.
byu/mhmc20 inScams
3. Typos, poor grammar, and excessive punctuation in listings
Typos, grammar mistakes, and poor punctuation that doesn't make sense are good signs you're dealing with a scammer on Craigslist. You may also notice inconsistent details, such as mentioning a city in a completely different location than the advertised listing. Or, the name of the landlord could keep changing as you interact. Serious homeowners will take the time to craft a decent listing and proofread it.
4. High pressure
Scammers often create a false sense of urgency to push you into making a decision. If an advertiser pressures you to pay a fee for an application or submit personal information before viewing the property on offer, you should raise an eyebrow and be cautious.
5. Photos appear in other listings
Kevin advises renters to always run a Google reverse image search on a few of the photos to see if the rental’s photos are showing up elsewhere under different listings. This is because scammers often steal photos from a current or recent home for sale and run the same photo on hundreds of other sites worldwide.
6. Lister won't schedule a showing
A good landlord will not give you the runaround when you ask to see the listing. A scammer, however, will come up with an excuse not to meet you in person, like being abroad for work or serving in the military. To stay safe, always make sure you meet the landlord in person or request a virtual tour of the property so you know that the property exists.
7. There is no tenant screening process
A legitimate landlord or property manager will have a tenant screening process in place to ensure the safety and security of their property. If you encounter a situation with no tenant screening process, it could be a red flag for a potential scam.
8. Lister refuses to answer basic questions or speak on the phone
Any legitimate advertiser will gladly answer any questions you may have regarding the listing. If they keep avoiding your questions, then you're likely dealing with a scammer. “Typically, scammers only want to communicate via text messages or WhatsApp,” says Hawkins.
9. The credit check is “free”
Honest landlords typically require a background check, employment verification, and a credit check. However, this verification process should never be free. So if the ad says “free credit check,” there’s a high likelihood it’s a scam.
Helene notes that some landlords have legitimate properties available in areas with significant demand from individuals who might not have good credit or no credit history, such as in communities with large populations of new immigrants. Waiving this requirement can help expedite the application process, allowing tenants to move in faster. (She points out that in return, some of these properties might require higher deposits or rent amounts.) However, this is still something to be aware of as a potential sign of a dishonest listing.
“Proceed with caution, though, as it can also be a red flag for a scam,” she says.
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10. You can’t verify the lister’s identity
Before you proceed with a listing, do a Google search using the phone number on the ad. Helene says this might give you some insights as to whether the ad/person is legitimate by revealing reviews or showing other listings. Check to see if the landlord’s name matches those on other listings. If it doesn’t, the “landlord” might be copying a legitimate listing.
Additionally, you can search for their name, email, or business name and see if you can find them on social media platforms such as LinkedIn and Facebook.
11. Requests for unsecured payment methods
Asking for the money to be wired or sent via a gift card is a no-go, says Guanella. Federal Trade Commission (FTC) strongly cautions renters to never pay with cash, wire transfers, cards, or cryptocurrency. If anyone tells you to pay that way, it’s a scam. Wiring money, sending gift cards, or paying by cryptocurrency is the same as sending cash—once you send it, you probably can’t get it back. Anyone who demands that you pay those ways is a scammer.
Legitimate landlords use traceable methods like bank transfers or rental-specific payment platforms.
Scammed by a Craigslist rental ad? What to do
If you suspect that you're dealing with a scammer or you've actually been scammed on Craigslist, here's what you should do.
- Flag the listing on Craigslist: To report a posting, use the “flag” button above the listing title.
- Alert the Craigslist community: Share your experience and evidence, such as screenshots of the ad and emails on forums or community boards, to warn others about the scam.
- Contact local authorities: If you have lost money to a scammer, you can file a report with your local police department.
- Notify the FTC and IC3: You can also report the scam to the Federal Trade Commission (FTC) at reportfraud.ftc.gov and the Internet Fraud Complaint Center (IC3).
- Monitor your accounts: If you provided personal information or financial details to a scammer, monitor your accounts for suspicious activity and even place a fraud alert on your credit report.
Alternatives to Craigslist for affordable housing
While Craigslist can sometimes have legitimate listings, it is no longer the only one-stop interface it used to be, and there are many alternatives.
“When dealing with a significant financial investment/commitment, we highly recommend that consumers use other, more secure and safer, platforms. Well-established rental platforms such as Apartments.com and Zillow are solid alternatives and offer more robust services—including an application portal, screening of applications, rent payment portals, etc.,” says Helene.
Let’s take a look at these and other alternatives to Craigslist.
Working with a housing counselor
If you have low income or bad credit and are unsure where to start, find a housing counselor who can advise on buying a home, renting, defaults, forbearances, foreclosures, and credit issues. Check the U.S. Department of Housing and Urban Development (HUD) for a list of approved housing counselors who offer you independent advice at little or no cost.
National Low Income Housing Coalition (NLIHC)
NLIHC is a non-profit housing organization advocating for affordable housing. Take advantage of various tools on the site to help you find affordable homes and rental assistance programs.
Apartments.com
Apartments.com is a popular rental platform featuring millions of verified apartment listings across the U.S. The site allows users to filter options based on location, price, and amenities to help them find a place that fits their budget and needs.
Zillow
Zillow is another reliable online real estate that lets renters search multiple listings in their desired city. It will narrow results by price, lot size, number of rooms, and other settings. The site also offers valuable tools and tips for rental house hunting.
The bottom line: are Craigslist apartments legit?
Yes, Craigslist apartments can be legitimate. However, before you send any money, make sure you verify property details, meet landlords in person, view the property, and sign a lease.
Follow these steps to protect yourself from scams on Craigslist and find legitimate, affordable housing options!
SOURCES
- “Federal Bureau of Investigation Internet Crime Report 2023,” Department Of Justice, Federal Bureau of Investigation.
https://www.ic3.gov/Media/PDF/AnnualReport/2023_IC3Report.pdf - “Rental Scams On Craigslist and 9 Ways to Spot One,” Kevin Vitali.
https://merrimackvalleymarealestate.com/spot-rental-scams-on-craigslist/ - “Rental Listing Scams,” Federal Trade Commission Consumer Advice.
https://consumer.ftc.gov/articles/rental-listing-scams - “Rent to Own the American Dream: The Promises and Perils of Alternative Home Financing,” Techequity Collaborative.
https://techequity.us/wp-content/uploads/2022/11/Rent-to-Own-the-American-Dream.pdf - “What you need to know about rent-to-own home deals,” Federal Trade Commission Consumer Advice.
https://consumer.ftc.gov/consumer-alerts/2016/11/what-you-need-know-about-rent-own-home-deals - “Section 8 scammers cheat people seeking housing,” Federal Trade Commission Consumer Advice.
https://consumer.ftc.gov/consumer-alerts/2015/06/section-8-scammers-cheat-people-seeking-housing - “State Housing Agencies Warn of Social Media Scam Involving HCV Waitlist Openings,” National Low Income Housing Coalition.
https://nlihc.org/resource/state-housing-agencies-warn-social-media-scam-involving-hcv-waitlist-openings - “Section 8 scammers cheat people seeking housing,” Federal Trade Commission Consumer Advice.
https://consumer.ftc.gov/consumer-alerts/2015/06/section-8-scammers-cheat-people-seeking-housing
