An advert for the apartment, which is in the Stockholm district of Gärdet, was posted on Swedish buy-sell site Blocket as well as others for potential tenants to see.
Those interested in the apartment were even able to inspect it, with 27 of the house-hunters being so satisfied with what they saw that they gave over an advanced payment of 20,000 kronor ($2,989) to the con artists.
However, the would-be tenants were all told afterwards that the apartment had already been rented out.
“The two suspects have had access to the apartment and have made sure that the tenant applicants have had the chance to see it,” said criminal inspector Gunilla Hörndahl of the Stockholm police to the magazine Hem & Hyra.
“Coincidentally, two of the intending tenants noticed that they had looked at the same apartment and called us.”
The two fraudsters, who were arrested in the apartment, are believed to have netted over 500,000 kronor from the scam, which means they are now suspected of aggravated fraud, a crime which can result in up to six years in prison.
Police have launched an investigation.