7 Rental Frauds Landlords Encounter and How to Prevent Them

Rental fraud has become a serious concern for landlords. What often begins as a routine tenancy escalates into unpaid rent, property misuse, and financial loss. Many of these cases surface only after possession is handed over, when corrective action becomes difficult. Fraudulent tenants use false information, payment manipulation, and delayed disclosure to exploit gaps in the rental process. As rental transactions increasingly rely on digital communication, traditional checks are proving insufficient.

Landlords must understand how these frauds occur and where risks commonly arise. This article outlines the most common rental frauds landlords face and offers practical steps to reduce exposure and improve control throughout the rental cycle.

1. Impersonating Army or Government Personnel to Scam Landlords

Impersonation of a dignified government official is a serious threat to landlords. This fraud is happening a lot lately. They use this identity to build trust and avoid thorough checks. This trend has become more common as fraudsters exploit respect for official titles and the expectation of stability associated with such roles.

Real Incident: The Hindu has published a news article stating that a Hyderabad resident lost ₹12.75 lakh after fraudsters posing as NSG personnel used fake IDs and a fabricated Pulwama-linked “security protocol” to extract money during a rental deal.

How does this happen?

• The person will contact you and claim to be in the military or law enforcement.
• They will share a copy of their identity card or a photo in uniform.
• The fraudster will emphasise the urgency of renting the property and even offer a higher rent.
• You will trust them without verifying and close the deal.
• They send a payment link or method for the rent or security deposit.
• If you follow the method or click the link, funds will be withdrawn or your bank details compromised.

How to avoid?

• Do not rely on claimed status or photos alone. Insist on meeting in person or via live video.
• Avoid clicking on payment links. Use standard bank transfer methods you already know and verify identity independently through official channels.
• Don’t get stressed out if someone says they are from the army, police or CBI. Deal with them calmly, verify all the details, and then proceed.
• Most of the fraudsters call on WhatsApp or other social media apps. Avoid having communication on social media platforms.

2. False Complaints Used to Pressure the Landlord

The tenant raises complaints that are exaggerated or fabricated to pressure the landlord. These complaints are often used to delay rent payments, avoid vacating the property, or force changes in agreed-upon terms.

How does this happen?

• The tenant will initially show the best behaviour.
• However, when asked to vacate the property, they show their true colours.
• There will be rental delays and an increase in complaints, including issues with sanitation and mistreatment.
• To further pressure you, complaints are filed with the society or the local authorities.
• In such cases, you will be pressured to negotiate or delay action.

How to avoid?

• Keep all communication in writing and respond to genuine issues on time.
• Stick to the rental agreement and avoid verbal commitments that cannot be recorded.

3. Tenants Using Fake or Borrowed Identity Documents

In this type of fraud, a tenant submits fake identity documents. The documents may look genuine. As a result, the landlord rents the property to a person whose identity is unclear.

How does this happen?

• The tenant will provide the scanned copies of the IDs. They will never show you the original documents on some or the other pretext.
• They create urgency to close the deal so you don't have time to think or verify the details.
• If you ask them to meet in person, they will avoid it by saying they are not in the city or are busy.
• Then, you will transfer the property on a trust basis only.
• This leads to rental delays, communication problems or even legal issues. In such cases, you will never be able to trace them.

How to avoid?

• Always verify original identity documents in person or through a live video call.
• Match the tenant’s face with the photo and complete the police tenant verification before handing over possession.

4. Misrepresented Employment or Income Details

Tenants sometimes provide job or income details that do not accurately reflect their financial position. The information shared may appear convincing on paper, but it does not reflect their actual ability to pay rent over time. This often leads to payment issues after the tenant has settled in.

How does this happen?

• The tenant will tell you that they are working with a known company.
• They will share manipulated scanned copies of income details to demonstrate they can afford the property.
• You will give them possession of the property without any verification.
• Eventually, you will notice that rent and maintenance payments are delayed.
• If you ask them, they will give you reasons such as a delayed salary or a job loss.

How to avoid?

Verify employment through an official company contact and review recent bank statements to confirm regular income before handing over possession.

5. Multiple Occupants and Subletting Without the Landlord’s Knowledge

The tenant rents the property from the landlord and then allows other people to stay or rent it out without permission. This is done to generate additional income or share costs without the property owner's knowledge.

How does this happen?

• The tenant will take possession of your property.
• Initially, only the tenant will stay in the house.
• Over time, additional people start living in the property without informing you.
• They might also rent the property to others for their own profit.
• If anything goes wrong, there is a risk of legal scrutiny against you.

How to avoid?

• Clearly state in writing that subletting is not permitted without prior approval.
• Request details on all occupants and stay in touch with neighbours or society members to notice changes early.

6. Use of the Property for Unauthorised Activities

The tenant uses the property for purposes not agreed to at the time of the lease. This can include commercial use, short stays, or activities that create legal or safety risks for the landlord.

How does this happen?

• The tenant will rent your property for residential use.
• After a specific period, the tenant will use your property for other purposes without your consent.
• Unauthorised activities will begin, resulting in complaints from neighbours or society members.
• If something illegal is occurring, the police will also be involved.
• You will also be questioned by neighbours, community members, and the police in such cases.

How to avoid?

• Clearly mention the permitted use of the property in writing.
• Stay in touch with neighbours or community members, and act quickly if anything is not right.

7. Disappearing Tenants Leaving Dues

The tenant vacates the property without paying outstanding rent or utility bills. In some cases, the tenant leaves behind damage or missing items and cannot be contacted afterwards.

How does this happen?

• The tenant will occupy the property for an extended period.
• They will start delaying the bill and rent payments.
• At the start, they will give you reasons and promise you that they will pay the dues.
• Eventually, the tenant vacates the property without giving you any notice.
• Rent and utility bills will remain unpaid, and if you try to contact them, they will not be reachable.

How to avoid?

• Collect a reasonable security deposit and keep copies of current contact details and emergency references.
• Carry out a final inspection before returning any deposit.

What to Do If You Encounter a Rental Scam in India?

When a rental scam comes to light, the priority is to prevent further loss. Acting practically, rather than reacting emotionally, helps keep the situation under control.

Inform your bank or payment service first

If any money has been transferred or deducted, contact your bank or payment provider immediately. They can flag the transaction, monitor account activity and reduce the risk of additional misuse.

Secure and organise all available proof

Gather messages, emails, call records, payment confirmations and any documents shared during the rental process. Arrange them in order so the sequence of events is precise.

Report the matter through official channels

Submit a complaint at your local police station with the collected records. If the scam involved online payments, fake links, or digital impersonation, also register the case on the National Cyber Crime Reporting Portal at cybercrime.gov.in, which is operated by the Ministry of Home Affairs.

Use the government cybercrime helpline

You can report financial cyber fraud by calling 1930. Early reporting improves the chances of timely action.

Conclusion

Renting out property can be rewarding, but it also requires attention and basic checks. As rental markets grow and processes become more digital, how landlords are misled has changed as well. Many scams follow familiar patterns and often succeed because they appear routine at first. Taking time to verify details, keeping communication clear and relying on official channels can reduce unnecessary risk. When problems arise, acting early and following proper reporting procedures makes a difference. Awareness, patience and structured processes help landlords protect both their property and their peace of mind.

Frequently Asked Questions