Is it normal for a landlord to ask for a deposit before signing a lease?

No. A deposit should only be collected at or after lease signing. Some landlords may accept a small good-faith deposit ($100-$200) to hold a unit while you review the lease, but this should come with a receipt and be refundable if the lease terms are unacceptable. Any landlord asking for a full security deposit before you have signed a lease is a red flag.

Can I get my deposit back from a scammer?

It depends on how you paid. Credit card charges can be disputed with your card issuer. Bank checks can sometimes be stopped if the scammer has not cashed them yet. Wire transfers are extremely difficult to reverse. Zelle, Venmo, and Cash App payments are almost never recoverable because they are treated as authorized transfers.

What is a normal security deposit amount?

Most states limit security deposits to one to two months' rent. Some cities (like New York and San Francisco) have stricter limits. If a landlord asks for a deposit exceeding two months' rent, check your state and local laws. Excessive deposits can be a scam indicator or a sign of an inexperienced landlord.

Rental Deposit Scams: How Scammers Steal Your Money Before You Move In

The average rental scam victim loses $1,000-$2,000 — almost always as a fake "security deposit." Here is how these scams work and how to never fall for one.

Deposit scams are the bread and butter of rental fraud. The concept is simple: a scammer poses as a landlord, creates urgency, and collects one or more "deposits" from multiple victims before disappearing. According to FTC data, the typical victim hands over between $1,000 and $2,000 — representing a security deposit plus first month's rent.

The 5 Most Common Deposit Scam Tactics

1. The "Hold the Apartment" Scam

The scammer tells you: "I have several people interested. If you send a deposit today, I'll hold it for you and take the listing down." They collect deposits from multiple victims simultaneously, each believing they have secured the apartment.

Reality: No legitimate landlord will take your money without showing you the property first and providing a lease agreement. A "holding deposit" without a signed lease is money thrown away.

2. The "Application Fee" Scam

The scammer charges $50-$200 for a "background check" or "application fee" before you have even seen the property. While legitimate landlords sometimes charge application fees, scammers charge many applicants knowing they will never process a single application.

Reality: A legitimate application fee should only be paid after viewing the property. The fee should be reasonable ($25-$75) and the landlord should explain exactly what it covers. Never pay an application fee via gift card, wire transfer, or Zelle.

3. The "First and Last Month" Scam

The scammer asks for first month's rent, last month's rent, and a security deposit all upfront — before you have signed a lease or viewed the property. This can total $3,000-$6,000 depending on the rent.

Reality: While it is normal for landlords to collect first month's rent and a security deposit at lease signing, this should only happen after you have toured the property, verified the landlord, and reviewed the lease. Collecting last month's rent upfront is unusual in many states and should raise suspicion.

4. The "Refundable Deposit" Scam

The scammer assures you: "This is fully refundable if you don't like the property." This gives victims a false sense of security. They figure: if I can get my money back, what's the risk?

Reality: Scammers have no intention of refunding anything. Once the money is sent, they vanish. "Refundable deposit" is just a phrase to lower your defenses.

5. The "Keys for Cash" Scam

The scammer offers to mail you the keys or put them in a lockbox if you wire the deposit. This is one of the oldest rental scam tricks and remains effective because it sounds like a reasonable solution when the landlord "cannot be there."

Reality: No legitimate landlord mails keys to someone who has never viewed the property. If they cannot be there, they arrange for a property manager, agent, or trusted representative to show the property.

Safe Ways to Pay a Rental Deposit

✓ Personal check made out to the landlord's legal name or management company (provides a paper trail and can potentially be stopped)
✓ Certified check or money order made out to a named entity (not "cash")
✓ Credit card through a property management portal (charges can be disputed)
✓ Tenant portal payment through an established platform like AppFolio, Buildium, or RentManager

Unsafe Payment Methods (Never Use These for Deposits)

x Wire transfer (Western Union, MoneyGram) — nearly impossible to reverse
x Gift cards — once the code is used, the money is gone
x Cryptocurrency (Bitcoin, Ethereum) — irreversible
x Zelle, Venmo, Cash App for deposits before viewing — treated as authorized transfers
x Cash — no paper trail whatsoever

The Golden Rule

Never pay any money before you have: (1) viewed the property in person, (2) verified the landlord's identity through county records, and (3) reviewed and signed a proper lease agreement.

No exception. No matter how good the deal. No matter how trustworthy the landlord seems. No matter how many "other people are interested." If you follow this single rule, you will avoid virtually every rental deposit scam.