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Key takeaways:
The choice to move can be a difficult one – even if it is within your own city or country. But moving outside your country comes with many questions and concerns about who you can trust, how you know your money is safe, and if you are dealing with people who can point you in the right direction. Some may try to take advantage of you because you are a newcomer to Canada. They will assume you don’t know the system well enough and know you will do anything to secure a home for you and your family. Here are some ways on how you can recognize these rental scams and keep yourself and your loved ones safe.
It’s not uncommon for many landlords to need or ask for a deposit upfront. But, many scammers will want money upfront in an untraceable form such as cash, cryptocurrency, wire transfer or other hard-to-trace equivalents. This should be a red flag for you if you are asked for such a payment. Only deal with forms of payment that are traceable and have an end-point where you can see a legitimate person or rental company.
Do not send money before you have signed an agreement with the landlord. Requests for money to “hold your spot” or upfront security deposits are not legitimate until the lease is signed. A landlord does not need your personal or financial information when you inquire about a listing.
Many scammers may post out-of-date or simply false photos of a property. They may try to hide the truth about property problems, or in the case of an extreme scammer, may be posting pictures that are not even properties for rent, or that they are affiliated with. Make sure you can visit properties in person and confirm the unit exists and matches what was advertised before signing a lease. If they don’t allow any you to visit, it’s best to move on.
Before you sign anything or send any payment, you’ll want to meet the individual who is renting the property. Someone who wants to find the right tenant will want to meet you, so schedule a face-to-face meeting, research the landlord, agent or property manager of the property. Scammers will find excuses to avoid meeting you even if it is through a phone or video call.
You’ve found a place to rent. You couldn’t be happier. But something seems off. The rent is much cheaper than market prices and the landlord is offering perks or amenities not usually available at these prices. Question it and be suspicious. Deals that seem too good to be true, usually are. If you are not satisfied with the answers, walk away. Don’t send any money ahead of time because you think it’s a great deal. Better to “pay more” on a legitimate rental than lose your hard-earned money in a scam.
Now that you’ve found a place, you might be searching for a roommate to help cover expenses and costs. Many scammers will often pose as prospective roommates who are out of town. They will often send a fake cheque with an amount larger than your asking price and request that you deposit this cheque and return the excess with a cheque or wire transfer. By the time the bank tells you the cheque is fake, the scammer would have disappeared with your hard earned money.
Someone who is genuinely interested to be your roommate will often ask to meet you and see the living space. They’ll have questions and want to learn who they’ll be living with and where they will be living. Avoid giving out personal details in your ad. Ask for references, contact information and their current employer to make sure they can pay for their part of the rent. Don’t accept money before signing a roommate agreements.
These tips will go very far in helping you avoid rental scams. However, you may find that what seemed legitimate, at first, is still a scam that you got caught up in.
Preparation ahead of time can help you in the rental process. For example, keeping all documentation and correspondence as a record can go a long way if you need to report a scammer to the authorities.
Research the property and the surroundings before initiating contact with the landlord. Other things you can do include insisting on a written lease and ensuring you get a signed copy of it before you move in. The lease should also identify the owner or property management company, along with the price and any amenities included.
Although large property management companies can be a lot of paperwork and headaches, and may be more expensive, they are legitimate rental companies. Consider working with them can ensure you are spending your money through a legitimate process.
If you’ve been the target of a scam you need to act quickly. Cut off all communication immediately with the scammer and report it right away.
Inform your bank that you have fallen victim to a scam. This can help minimize damage if they catch it in time and help stop any payments. You can file a report with the Canadian Anti-Fraud Centre, which can be done confidentially through the online reporting system or by phone at 1-888-495-8501 and also call your local police to report.
Trust your instincts. Things that appear suspicious are worth doing extra research on. If you don’t trust it, move on, because you are likely saving yourself time, financial pain, and headaches down the road. If you know anyone in Canada before you arrive, lean on them as a resource to help guide you in the rental market. Locals can be a valuable resource. You can also try places like the Canadian Centre for Housing Rights, or in Toronto, The Housing Help Centre.
