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Every day, thousands of potential renters look for dwellings in Canada. If you’re one of them, chances are you’re in the middle of browsing rental listings and moving out. The only problem is that it can sometimes be tough to find a unit that suits all your needs.
Plus, there’s a chance that the rental listing is fake and the poster is trying to scam you out of your hard-earned money. That’s right, rental scammers are very real and here’s how you can spot one before they steal from you.
These days, many landlords and people attempting to transfer a lease will post their rental listings online, using major websites like Facebook and Kijiji. Unfortunately, these types of web pages are harder to regulate than the classified section in your local newspaper, so a lot of scam artists lurk there.
Here’s how a rental scam usually happens:
Rental scammers can be industrious and convincing. Thankfully, there are clear signs that you can watch out for to avoid falling for a rental scam, such as:
One of the main ways a rental scammer will hook you is by listing a dwelling that seems amazing on paper but is ultimately fake. Since it’s rare in many areas, cheap rent is an especially good tactic. So is pretending that the unit is located near the top amenities.
Can’t afford furnishings or appliances? No worries, because the place comes fully stocked with a stove, fridge, microwave and washer/dryer combo. Even better; utilities, internet and satellite TV are all included with the rent.
How To Avoid:
Another way rental scammers trick you is by saying they need some form of payment right away to secure the unit for you. Popular reasons include other renters clamouring for the spot or that the landlord is leaving the country soon. Either way, the result is the same. Desperate to find a good, fairly priced rental, the victim gives in.
How To Avoid:
One of the most common rental scams is when the poster asks for a security deposit, application fee or first/last month’s rent. They could also demand a “vacation rental fee” for a short-term rental, as you might normally encounter when booking on Airbnb.
They’ll then get you to send the money in the least traceable way, such as a wire transfer through a company like Western Union or MoneyGram. Sadly, a wire transfer works the same way as a direct deposit. Once you send the money, you can’t retrieve it unless it’s given back, even if you sign an agreement or contract beforehand.
How To Avoid:
Sometimes, a “landlord” will claim they’re unable to show you a rental or give more details about it because they’re out of town or dealing with a personal crisis. So, of course, you have to transfer them money to secure the rental, right? Not the case. A real landlord should never deny a request for a personal tour.
How To Avoid:
To rent a dwelling, you’ll have to provide specific personal and financial information. If you decide to go ahead with the rental, the landlord may ask you to complete an application and provide bank statements, tax receipts, proof of employment and other documents to see if you’re capable of paying rent.
However, you aren’t obligated to give away information until you start filling out your application. So, if a landlord seems like they’re asking you for too many details right off the bat, even during a visitation, you may want to consider another rental.
How To Avoid:
Ironically, another sign of a rental scam is when an ad poster asks for too little information. While landlords aren’t allowed to request certain details, they still have to confirm your identification and financial stability before approving you as a tenant. Their application process will most likely involve an ID, income and credit check.
So, if the “landlord” doesn’t seem to care who you are or how healthy your finances are and only asks for an advance payment, this could be a red flag.
How To Avoid:
As mentioned, one of the simplest ways to trap a scam victim is by drawing their attention to a rental listing with enticing pictures. The photos may look professional because they’re stolen from an older listing or real estate website. They might also be fake or too blurry to make out, which could force you to contact the ad poster by message or email, potentially leading to manipulation.
How To Avoid:
A rental listing should include the address of the building, unit or complex and maybe a link to find it on Google Maps. You can then visit the location whether you’ve booked a tour or not. Although the landlord may not want to share the address or the unit number for privacy reasons, they should be willing to divulge those details if you’re thinking about renting it.
How To Avoid:
Find out how your rent payments can help you build credit.
Now that you know some of the common rental scams in Canada, here’s what you can do to avoid falling victim to one:
To further protect yourself, check out our list of the top financial scams in Canada.
If you’ve bought into a rental scam or you suspect that a lister is a scam artist, there are a few things you should do immediately, including:
If so, it’s safer to stay away and report it, if necessary. Rental scams can do serious harm to your finances and well-being, so if you find or fall victim to one, it’s important to take action before the situation worsens. Contact the Canadian Anti-Fraud Centre or your local authorities for more information about rental scams.
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Loans Canada is pleased to announce it placed No. 131 on the 2022 Report on Business ranking of Canada’s Top Growing Companies.
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