Mar 13, 2026
If a rental listing looks like a great deal in a tight market, renters are often warned to slow down and take a closer look.
Rental scams are becoming increasingly common, and they often rely on small upfront fees and rushed decisions to trap unsuspecting applicants. According to the Federal Trade Commission, there have been more than 65,000 rental scam reports since 2020, resulting in roughly $65 million in losses (1).
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That’s a lesson Christy Cosgrove learned while searching for an apartment in Osceola County, Florida. What appeared to be a legitimate listing on Realtor.com soon turned into something very different.
Cosgrove eventually discovered that the listing wasn’t what it seemed — and her experience is now serving as a warning to other renters (2).
The 1 red flag that was overlooked
After finding an apartment she was interested in, Cosgrove said she contacted the number listed on the ad and was directed via text to a website called Locayt.com, where she was asked to pay a $49 “application” fee.
Cosgrove said, “They told me it would just go towards the down payment, the deposit,” adding that she was promised a refund if she didn’t move forward. But after she paid, Cosgrove started to notice long delays and vague responses from the company.
Eventually, Locayt provided her with the contact info for the actual listing agent and that’s when everything unraveled. Cosgrove said she told the listing agent what happened because she was starting to get suspicious. According to Cosgrove the agent told her, “I have no idea what you’re talking about.”
The agent told her he had no connection to Locayt, there was no application fee, and he hadn’t even listed the property on Realtor.com. He suspected someone had scraped his legitimate listing and reposted it with fake contact details.
According to the Better Business Bureau (BBB), rental scams involving pre-payment are becoming increasingly common (1).
“There are multiple rental listing platforms where consumers are coming across Locayt,” said BBB CEO Holly Salmons. Salmons highlighted that Locayt currently holds an F rating, mostly because of unanswered complaints.
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The BBB has received hundreds of inquiries and more than 100 ScamTracker reports nationwide related to similar schemes. Many victims say they paid application fees, only to be ghosted or showed up to properties that weren’t even for rent.
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What renters can do to protect themselves
Application fees (typically ranging from $50 to $150) may seem small compared with a security deposit or first month’s rent. But scammers often rely on volume, collecting modest payments from large numbers of applicants.
The risks can go beyond losing the fee itself. Fake rental applications may also be used to collect personal information such as full legal names, birth dates, Social Security numbers and employment details — data that can later be used for identity theft or financial fraud.
If you encounter a suspicious listing, experts recommend taking a few precautions:
- Never pay before seeing the property, either in person or via a live video tour
- Verify the listing agent independently through their brokerage’s official website
- Cross-check listings on sites like Realtor.com, Zillow and local MLS databases
- Watch for pressure tactics or agents who only communicate by text
- Avoid unusual payment requests such as gift cards, crypto, wires or payment app
If you’ve already paid or shared personal information, act quickly: dispute the charge with your bank, place a fraud alert or credit freeze with the credit bureaus and monitor your credit report for suspicious activity.
In today’s rental market, scammers don’t need to steal thousands from one person. They can profit by stealing smaller “application fees” from thousands of renters who are stressed, rushed and afraid of missing out.
In a competitive rental market, it’s easy to feel pressured to move quickly. But slowing down long enough to verify a listing may be the simplest way to avoid becoming the next target.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
BBB (1); WFTV.com (2); AARP (3); Federal Trade Commission (4)
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Jessica is a freelance writer with a professional background in economic development and small business consulting. She has a Bachelor of Arts in Communications and Sociology and is completing her Publishing Certificate.
