Medium riskRental

Rental Application Fee Scam

This scam uses a fake landlord or agent who asks for an upfront application, holding, or background-check fee, often by e-transfer or gift card, before any viewing, then disappears once the money is sent.

Quick verdict

Risk level
Medium risk
Scam type
Rental listing scam
Main red flag
Being asked to pay an application, holding, or background-check fee before you have viewed the property.
What to do first
Do not pay any fee before viewing. Confirm the property and the person are genuine first.

How this scam works

This scam uses a fake landlord or agent who asks for an upfront application, holding, or background-check fee, often by e-transfer or gift card, before any viewing, then disappears once the money is sent.

Rental scams advertise properties that are not available, not owned by the "landlord", or do not exist, to collect deposits and first-month rent from hopeful tenants. They pressure you to pay before viewing and to move money by transfer.

In short, the giveaway is usually simple: Being asked to pay an application, holding, or background-check fee before you have viewed the property. Do not pay any fee before viewing. Confirm the property and the person are genuine first.

Scammers rotate tactics constantly, the same operation may also run the Rental Deposit Scam and the Fake Online Store Scam. See the full Rental & Housing Scams guides hub, or test a suspicious message with the scam checker.

How to spot this scam

  • A fee is requested before you have seen the property in person
  • The landlord or agent avoids in-person viewings, often claiming to be away
  • Payment is asked for by e-transfer, gift card, or other hard-to-reverse methods
  • The listing uses urgency, such as many other applicants, to rush your decision
  • The price or terms seem unusually good compared with similar local rentals

What the message looks like

Example pattern, not a real report
Example pattern: 'Thanks for your interest in the flat. Demand is high, so to hold it for you and run a background check, please send the $150 application fee by e-transfer before we schedule a viewing.'

This is a fictional, anonymised example used to illustrate the pattern. It is not a verified real message, and any names are used only to show how the scam typically reads.

What gives it away: Being asked to pay an application, holding, or background-check fee before you have viewed the property.

The scale of it

Hundreds of millions
real-estate and rental fraud reported to the FBI runs into the hundreds of millions of dollars a year
Source: FBI Internet Crime Complaint Center
$12.5B
total reported internet-crime losses in the US in 2023
Source: FBI Internet Crime Complaint Center

How to protect yourself

  • Arrange to view the property in person, or have someone you trust view it, before paying anything
  • Verify the landlord or agent and that they are genuinely connected to the property
  • Search the listing photos and address to check they are not copied from elsewhere
  • Be cautious of any fee requested by e-transfer or gift card before a viewing

Already responded? Do this now

  • Do not send any further fees or deposits
  • Contact your bank or e-transfer provider to report the payment and ask what can be recovered
  • Gather the listing, messages, and payment records as evidence
  • Report the listing to the platform and to your national anti-fraud centre

Mistakes to avoid

  • Do not pay an application or holding fee before viewing the property
  • Do not send money by e-transfer or gift card to a landlord you have not met
  • Do not share copies of your identity documents before confirming the listing is genuine

Related scams to know

High risk Rental

Rental Deposit Scam

This scam advertises a desirable rental at a low price and demands a deposit before any viewing, then disappears once you pay.

Created by Scam or Safe Editorial Team
High risk Online Shopping

Fake Online Store Scam

This scam sets up a convincing but fake store with very low prices, takes payment, and delivers nothing, a counterfeit, or a cheap substitute.

Created by Scam or Safe Editorial Team
High risk Marketplace

Car Deposit Scam

This scam uses an underpriced vehicle listing where the seller claims to be away and asks for a deposit or full payment through gift cards, wire transfer, or a fake escrow service before you can inspect the car.

Created by Scam or Safe Editorial Team

Common questions

Is it normal to pay an application or background-check fee?
Some genuine rentals do charge application fees, but being asked to pay before any viewing, especially by e-transfer or gift card, is a common scam pattern worth treating with caution.
The landlord says they are away, so should I just pay to hold it?
An absent landlord who wants money before a viewing is a frequent warning sign. Arrange to see the property, or have a trusted person view it, before sending any payment.
Why do scammers prefer e-transfer or gift cards?
These methods are quick and hard to reverse, so once you send the money it is difficult to recover. That is why fake landlords often steer you toward them.
What should I do if I already paid the fee?
Contact your bank or e-transfer provider straight away to report it and ask about recovery. Then report the listing to the platform and your national anti-fraud centre.

Last reviewed June 2026 · Written & reviewed by the

Disclaimer: This page provides educational information only to help you recognise common scam patterns. It is not legal, financial, cybersecurity, or law enforcement advice, and it does not confirm whether any specific message, company, or person is genuine or fraudulent. When in doubt, contact the official organisation directly and report concerns to your local authorities.