How Big Is the Problem?
The FBI's Internet Crime Complaint Center reports that rental scams cost Americans over $350 million in 2024 — and NYC is ground zero. The combination of high rents, fierce competition, and desperate renters creates perfect conditions for fraud.
Scammers know that in NYC, good apartments go fast. They exploit that urgency to pressure victims into sending money before they can think twice.
The 7 Most Common NYC Rental Scams
1. The Phantom Listing
How it works: Scammers copy photos from legitimate listings or real estate sites, create a fake ad at a below-market price, and collect "deposits" from multiple victims for an apartment they do not own or control.
Red flag: Price is 20-30% below comparable apartments in the same area. If a 1BR in Williamsburg is listed at $1,800 when others are $2,600+, question it.
How to protect yourself: Reverse image search the listing photos. Google the address to see if the same unit appears at different prices. Check if the building actually exists and has rental units.
2. The Wire Transfer Demand
How it works: After initial contact, the "landlord" insists on payment via wire transfer, Zelle, Venmo, or cryptocurrency — all methods that are nearly impossible to reverse once sent.
Red flag: Any request for wire transfer, gift cards, or cryptocurrency. Legitimate landlords accept checks or secure payment through licensed brokers.
3. The Out-of-Town Landlord
How it works: The "landlord" claims to be traveling, deployed overseas, or relocated for work. They cannot show the apartment in person but will mail you the keys after you send a deposit.
Red flag: Anyone who cannot — or will not — meet you at the property. Real landlords have superintendents, property managers, or brokers who can show units.
4. The Bait and Switch
How it works: You view a beautiful apartment. When you are ready to sign, you are told that unit is "no longer available" but they have another one — often in worse condition or at a higher price.
How to protect yourself: Get the exact unit number in writing before viewing. Insist on seeing the specific apartment you will be renting before signing anything.
5. The Fake Broker
How it works: Someone poses as a licensed real estate broker, shows you apartments they have no authority to rent, collects broker fees and deposits, then disappears.
Verify any broker:
- Ask for their license number
- Search the NY DOS License Search
- Confirm they work for the brokerage they claim
6. The Hijacked Listing
How it works: Scammers find legitimate for-sale listings, then advertise those properties as rentals at attractive prices. Victims pay deposits for homes the scammer has no connection to.
How to protect yourself: Search the address on Zillow, StreetEasy, and ACRIS. If it is listed for sale, not rent, walk away.
7. The Upfront Fee Scam
How it works: Before you even see the apartment, you are asked to pay an "application fee," "credit check fee," or "holding deposit." Once paid, the landlord becomes unreachable.
Red flag: In NYC, landlords can only charge a maximum of $20 for application and credit check fees combined (per the 2019 rent law). Anything higher is illegal.
The Verification Checklist
Before you send any money or sign any lease, verify these five things:
5 Steps to Verify Any NYC Listing
- 1Visit in person. Never rent an apartment you have not physically walked through.
- 2Verify ownership. Search ACRIS to confirm who owns the building. The name should match your landlord or their management company.
- 3Check building history. Look up HPD violations and 311 complaints. A building with major unresolved issues is a red flag.
- 4Research the price. Compare to similar units on StreetEasy. If it is significantly cheaper, ask why.
- 5Meet the landlord or their agent. Get business cards, verify identities, and keep records of all communication.
Verify Any Address Instantly
DwellCheck pulls HPD violations, 311 complaints, ownership records, and building history into one report. Know if the building is real and what problems it has before you visit.
Check Any Address — Free PreviewWhat to Do If You Have Been Scammed
If you have already sent money to a scammer, act fast:
- Contact your bank immediately. If you paid by credit card, dispute the charge. Wire transfers and Zelle are harder to reverse but report anyway.
- File a police report. Contact your local precinct and get a report number for your records.
- Report to the FTC. File at reportfraud.ftc.gov
- Report to the NY Attorney General. File a complaint at ag.ny.gov
- Report the listing. Flag it on whatever platform you found it (Craigslist, Facebook, etc.)
Platform-Specific Red Flags
Craigslist
- No-fee apartments at below-market rents (rare in NYC)
- Listings with only 1-2 photos
- Requests to communicate off-platform immediately
- Generic descriptions that could apply to any apartment
Facebook Marketplace
- New accounts with no history
- Profiles with few friends or recent creation dates
- Stock photos or watermarked images
StreetEasy / Zillow
- These platforms have verification processes, but scammers still slip through
- Be wary of listings that ask you to contact them off-platform
- Verify the broker's license independently
Frequently Asked Questions
Is it safe to send a deposit before signing a lease?
No. In NYC, you should not pay anything until you have: (1) viewed the apartment in person, (2) verified ownership, (3) reviewed and signed a lease, and (4) received a receipt. "Good faith deposits" before signing are a red flag.
How can I verify if a building is real?
Search the address on Google Maps Street View, check NYC's property records (ACRIS), and look up the building on HPD Online. If the building exists and has rental units, it will appear in city databases.
What if the price seems too good to be true?
It probably is. Research comparable rents on StreetEasy. If the listing is 20%+ below market, there is either something wrong with the unit, or it is a scam. Ask directly why the price is low and verify the answer.
Can I get my money back if I was scammed?
It depends on how you paid. Credit card payments can often be disputed. Wire transfers, Zelle, Venmo, and cryptocurrency are very difficult to recover. This is why scammers prefer these methods. Act fast and report to your bank immediately.
The Bottom Line
NYC apartment hunting is stressful enough without worrying about fraud. The best defense is simple: never send money without seeing the apartment and verifying the landlord.Take 10 minutes to research before you commit, and you will avoid 99% of scams.
When in doubt, verify. A legitimate landlord will understand your caution. A scammer will pressure you to act fast.
Found an Apartment? Verify It First.
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