Quick summary: Renting for the first time abroad, you're seen as a risk by landlords because you have no local rental history and no local income, so you'll typically need to compensate with financial documentation, a guarantor, or paying in advance. The safest rule: never transfer any money before viewing the property in person or via a live video call, and only transfer to an account in the name of the person signing the contract.
Rental scammers don't pick targets randomly. They look for people with three characteristics simultaneously: in a hurry, far away, and with money ready. A family relocating and needing an address for documentation, living halfway across the world, and having funds available has all three.
The second counterintuitive fact: in housing-scarce cities like Lisbon, London, Berlin, Toronto, or Sydney, landlords choose tenants, not the other way around. A nice apartment at a reasonable price with an immediate landlord response urging you to send a deposit is a reason to pause, not a stroke of luck.
Why newcomers are the easiest targets for rental fraud
To landlords and property managers, newcomers are a difficult application to assess. No credit history locally, no local employment contract, no previous landlord in the country to call for reference. They mitigate risk by demanding higher deposits, more upfront payment, or simply choosing someone else.
This creates two common pitfalls for renters. First, accepting all terms of the first property willing to rent to you. Second, trusting listings that claim to ask for "no documentation," which is typically a hallmark of scam listings.
Understanding the landlord's perspective helps you prepare what they actually need and recognize when someone isn't acting like a genuine landlord.
Deposits by country: caps and who holds the money
Many countries regulate maximum deposit amounts and where the money is held. Knowing the law protects you from excessive demands and helps you know when to be cautious. The table below summarizes regulations we've documented through 2026; verify current rules for your specific location.
| Location | Typical deposit or cap | Where deposit is held |
|---|---|---|
| England | Maximum 5 weeks' rent if annual rent is under £50,000 | Landlord must place in a government-authorized deposit protection scheme within 30 days |
| Germany | Maximum 3 months' rent excluding service fees, paid in 3 installments | Separate account, isolated from landlord's assets |
| Ontario (Canada) | Only the final month's rent can be collected as a deposit; no damage deposits | Landlord holds it for the final month |
| Australia | Typically equivalent to 4 weeks' rent | State-regulated deposit management authority |
| Dubai | Typically around 5% of annual rent for unfurnished properties | Held by landlord per contract |
| Portugal | Deposit plus agreed upfront months | Held by landlord per contract |
In England, tenant fee legislation enacted in 2019 prohibits most agent fees charged to renters. If an English agency demands a large "application fee," ask for the legal basis. In Dubai and Portugal, practice differs significantly; we cover these separately in Cost of Living in Dubai by Income Level and Your First Year in Lisbon.
Guarantors and rental applications: compensating for having "no history"
In many countries, landlords want a local guarantor with stable income. Newcomers typically have none. Common alternatives:
- Rental guarantee companies: in England, Germany, and some other countries, services stand in as a guarantor for a fee, typically a percentage of annual rent.
- Deposit guarantee insurance: in Germany, insurance products replace a cash deposit with a guarantee contract, preserving your cash for other needs.
- Paying several months in advance: effective, but some jurisdictions limit this by law, and you're most at risk if disputes arise.
- An acquaintance already settled in the country: if you have a friend or relative with stable local income and residency, this is what landlords trust most, but they're taking on real financial responsibility.
- A strong rental application: the least expensive method and often overlooked.
A strong rental application typically includes: passport, visa or residency card, bank statements from the last few months, a letter from your bank confirming your account standing, proof of income or assets, and a reference letter from your previous landlord in your home country in English. In Germany and the Netherlands, applicants often include a short personal letter introducing their family, occupation, and reason for moving.
In Germany, landlords typically request a SCHUFA credit report and confirmation from your previous landlord that you don't owe rent. As a newcomer you won't have one, so bank letters and financial proof become even more important. In the U.S., many landlords want income around three times the rent, and those without an established credit history often face higher deposits.
Types of scams targeting remote renters
We've encountered all of these targeting clients in various countries:
- "The landlord is abroad." They can't show the property and ask you to send a deposit so they can mail you keys. The keys never arrive.
- Copied listings. Photos taken from a legitimate short-term rental posted again at a lower price. Reverse image search usually reveals the original.
- Deposit to hold the place before viewing. "Ten people are asking about it, send a deposit today to hold it." A genuine landlord might be busy, but won't ask for money before you see the apartment.
- The renter doesn't have the right to lease. Someone renting out a property they themselves rent from, without the landlord's permission. You could be forced out anytime.
- Fake payment page. Email that looks like it's from a major platform, saying funds will be "held safely" until you move in. Legitimate platforms don't work this way via email.
- Untraceable payment methods. Requests for wire transfers, cryptocurrency, or gift cards. This is almost a certain indicator of a scam.
Scams targeting newcomers extend beyond housing; we address general safety in Safety When Arriving in a New Country.
Verification checklist before transferring funds
- You've seen the property in person, or via a live video call that you initiated where the person walks through each room, turns on faucets, and looks out windows.
- The person signing the contract is the owner, has written power of attorney from the owner, or is a licensed property management company.
- Where a property registry exists, you've verified the owner's name. England and Portugal allow this for a small fee.
- The receiving account is in the name of the person or company on the contract.
- The contract clearly states: lease term, early termination clauses, who pays building fees and utilities, how rent increases are calculated upon renewal.
- You have a copy of the contract in a language you can read, or have had someone review it before signing.
- You've confirmed whether the contract can be used as proof of address for residency registration.
- No payments are in cash, cryptocurrency, or gift cards.
The point about proof of address is easily overlooked. In Germany, renters need a landlord's confirmation letter to register residence. In Portugal, contracts must be filed with the tax authority. An informal "under-the-table" rental might delay your residency registration significantly.
Move-in day: the condition report that protects your deposit
Most deposit disputes at move-out stem from move-in documentation. Create a condition report on the day you receive keys:
- Video each room slowly, narrating room names aloud.
- Photograph scratches, stains, and broken fixtures in detail.
- Record utility meter readings (electricity, water, gas).
- Count keys, key cards, and remote controls.
- Email everything to the landlord or property manager the same day.
That email has a timestamp. When you move out one or two years later, it's your strongest protection for recovering your deposit.
Risks to know in advance
Fixed-term contracts are hard to exit. Many year-long contracts have no early termination clause. If your plans are uncertain—for example, if you're still deciding on schools as covered in Choosing an International School When Relocating—negotiate this before signing.
Temporary accommodations may not qualify for residency. Serviced apartments and short-term rentals are good for your first month, but many don't issue proof of address for residency registration.
Renting versus buying are different decisions. Many families want to buy outright to avoid renting. Buying abroad comes with restrictions on foreign ownership, detailed in Buying Property Abroad: Hidden Limits for Foreigners. We don't provide real estate or contract law advice; for significant contracts, consult a local lawyer.
Rent increases upon renewal. Where no rent caps exist, year two could spike significantly. Ask how increases are calculated and request this in writing if possible.
Advance payments are at-risk funds. Paying six months or a year ahead helps secure the place, but if the landlord sells, goes bankrupt, or disputes arise, recovery is lengthy. Keep advance payments as low as you can negotiate.
Next steps
Prepare your rental application packet before leaving your home country: translate bank statements, request a letter from your bank, and get a reference letter from your previous landlord. Book temporary accommodation for your first one to two months, then view properties in person. When budgeting your first year, add deposits and advance payments to our cost-of-living calculator, as these lock up significant funds immediately. If you're moving to Germany, factor in waiting time to schedule your residency registration appointment after signing the lease.
