Renting a home in India is becoming increasingly popular, especially in fast-paced metros like Bengaluru, Mumbai, Delhi-NCR, Pune, and Hyderabad, as well as in emerging smaller towns and Tier-2 cities. The flexibility of renting appeals to both young professionals and families alike. However, the process comes with certain risks.
With a surge in online listings and informal agents, rental scams are on the rise. From fake listings to advanced payment frauds and unverified landlords, unsuspecting tenants often fall prey to schemes that can cost them both financially and emotionally.
This guide will help you understand common pitfalls, red flags to watch out for, and practical steps to ensure a safe rental experience in India.
Why should you care about rental safety?
A house is more than just a place to live. For many, it represents security, stability, and convenience. Falling victim to a rental scam can lead to legal complications, financial loss, or even homelessness.
Rental frauds in India are no longer limited to major cities. Smaller towns with growing tech hubs like Indore, Coimbatore, Kochi, and Jaipur are also seeing a spike in cases.
According to NCRB data, cybercrime complaints related to property fraud have increased by over 35% in the past two years alone, much of it tied to rental scams conducted through online platforms and unregulated brokers.
Common rental scams to watch out for
Fake listings on classified platforms
Scammers post attractive property listings on portals. These often feature low rents and beautiful photos that are either stolen or manipulated.
Avoid: The “landlord” cannot show you the property in person and pressures you to pay a token amount to lock the deal.
Advance payment fraud
You are asked to pay a large advance to “secure” a property urgently. Once the payment is made, the scammer vanishes.
Avoid: Requests for money transfers without any legal agreement or receipts.
Unverified landlords
Scammers impersonate property owners or create fake Power of Attorney documents to rent out homes they do not own.
Avoid: Reluctance to share ownership documents or ID proof.
Duplicate rentals
The same property is fraudulently rented out to multiple tenants using fake or forged documents.
Avoid: Multiple tenants visiting the property for viewing or moving in around the same dates.
Steps on how to protect yourself
Conduct a physical visit
Always visit the property in person or have a trusted representative do so on your behalf. If the landlord is abroad, verify the Power of Attorney carefully.
Verify ownership
Ask for the following documents:
- Title deed
- Property tax receipts
- Approved building plan
- Owner’s ID and address proof
Cross-check these with local municipal records if possible.
Insist on a registered rental agreement
A rental agreement must be executed on stamp paper and registered with the local sub-registrar’s office. This ensures legal validity and protects both parties.
Be wary of too-good-to-be-true deals
If a property is being offered at a much lower rent than the market rate, approach with caution. Cross-verify rates on trusted platforms like Housing.com.
Use trusted platforms and verified brokers
Stick to reputed online platforms with verified listings. If using a broker, ensure they are registered with the Real Estate Regulatory Authority (RERA), which is now mandatory in most Indian states.
Avoid full payments in advance
Never pay the full security deposit or advance before signing the agreement and collecting the keys.
Rental safety in metro cities vs smaller towns
Metro cities
- Scams are more prevalent online.
- Broker networks are well organised but not always transparent.
- Police verification of tenants is mandatory, but often skipped.
Tip: Demand police verification as part of the process and verify whether the property is part of a gated society with clear ownership records.
Smaller towns and emerging hubs
- Landlords may be casual and skip formal agreements.
- Word-of-mouth references are common but unreliable.
- Scams often involve illegal subletting of properties owned by NRIs.
Tip: Even in small towns, insist on a proper agreement and verify property documents thoroughly.
The problem of adverse possession across the country
Adverse possession is a legal concept under Indian property law that allows someone who occupies another person’s land continuously for 12 years or more, without permission or dispute, to potentially claim ownership. This law was originally designed to resolve long-standing land disputes, but in modern times, it is often misused. In cities like Delhi and Chennai, where property values are high, there have been increasing cases where caretakers, tenants, or even illegal occupants refuse to vacate and attempt to claim ownership under this doctrine. Property owners, especially those not residing on-site, may not even be aware their property is being used until it is too late.
NRI property encroachment
For NRIs who own property in India, especially ancestral homes or vacant plots, the risk of encroachment is significant. Unscrupulous relatives, neighbours, or land mafias may illegally occupy or rent out the property without consent. Tier-2 towns such as Ludhiana, Surat, and Mangalore are seeing a rise in such cases, largely because NRI owners aren’t physically present to monitor their property. Without regular inspections, clear documentation, or legal boundaries being enforced, reclaiming such properties can turn into prolonged legal battles that span years and cost lakhs.
Extra tips for NRIs renting property in India
NRIs renting out their Indian properties must be equally cautious:
- Engage a reputed property management service if you are overseas.
- Always register rental agreements and conduct police verification of tenants.
- Do not rely solely on relatives or informal brokers for managing your property.
How to report rental scams?
If you encounter a rental scam, act immediately:
Step 1: File an FIR with the local police station under sections dealing with cheating and fraud.
Step 2: Report the scam to cybercrime.gov.in if it involves online fraud.
Step 3: Notify the online platform where the listing appeared.
Step 4: Consult a lawyer to recover your funds through legal means.
Timely reporting increases the chances of catching the fraudsters and prevents others from falling into the same trap.
India’s rental market continues to evolve, offering great opportunities for tenants across both metro cities and smaller towns. But with opportunity comes risk.
Being vigilant, following due process, and insisting on transparency are your best defences. Whether you are moving into a Bengaluru apartment or a Kochi townhouse, staying informed is key to protecting your hard-earned money and securing a safe rental home.
Is it safe to rent a property through online platforms?
Yes, but only through verified listings and reputed platforms. Always cross-check information and never skip a physical visit.
Should rental agreements be registered?
Yes. A registered rental agreement protects you legally and is mandatory in many states.
How do I verify if the landlord is genuine?
Request original ownership documents and verify them with municipal records. Also, ask for ID proof.
Can I trust brokers in smaller towns?
Prefer brokers who are registered under RERA. Informal agents can be unreliable.
| Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com |
