Here's How Immigrants and Students Can Spot and Avoid Rental Scams

Knowing how to spot and avoid common rental scams in Canada is vital for newcomers looking for their first rental accommodation. Fortunately, these smart tips for newcomers and international students can prevent you from falling victim to scammers. Rental scams targeting newcomers are among Canada's most common fraud schemes and are common in the popular settlement cities of Toronto, Vancouver, and Calgary. Staying informed about common rental scams can help you avoid costly rental scams and find legitimate rental apartments.

 

8 Tips to Avoid Rental Scams

 

1. Avoid Cash Deals

Cash-only deals are the number one rental scam targeting newcomers and international students and a sign that something is wrong. Cash cannot be tracked. Avoid dealing in hard currency. The same goes for wire transfers "upfront." If a landlord asks for cash this is a red flag. The best way to protect yourself is to avoid cash deals. It's that simple. 

 

2. Use Rental Platforms that Verify Landlords

Legitimate rental platforms in Canada use a verification program for landlords. You place yourself at greater risk for a rental scam if you use a site that doesn't verify landlords. Also, insist on meeting the landlord in person to tour the property.

 

3. Sign a Written Lease

Verbal or handshake agreements are another tool rental scammers use. So, always sign a hard copy of the rental agreement (or lease). A hard copy is preferable, but e-leases are becoming common. If possible, ensure the landlord is present when you both sign the lease and get a copy. The lease should include the landlord's name, address, and telephone number.

 

 

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4. Find Out Who Owns the Property

The property owner's name (individual or company) must be on the lease document. If it's not, walk away. Do not accept anyone's offer to "send the documents to you later." That's a rental scam warning sign.

 

5. Subleasing Rental Scams

While common, subleasing from the original tenant can be the shakiest thing you can get yourself into. Checking whether the tenant has the right to sub-lease the rental to you is hard. And you can never be sure you're not becoming part of a rental scam.

 

 

 

6. Beware of the “Middleman” Rental Scam

Rental scammers use classified websites such as Craigslist and Kijiji, posing as a "middleman" authorized to rent a place to you. They will meet you at the address (which is usually accurate) but will tell you they can't access it.

The scammers find the rental on another real-estate platform, take the pictures and description, and place the info into an online ad. The middleman then collects a rental payment, security deposit, and other payments that can be part of a rental agreement and disappear with your money.

 

7. Know the Median Rental Price in Your City

As part of your newcomer research, investigate the median rental price in the city you want to rent. This will give you an idea of rental prices. Be suspicious of rental prices well below the median (too good to be true!). It could be a rental scam and a warning that something isn't right.

 

8. Consider Renting Through a Real Estate Agent

A licensed, experienced real estate agent can make your rental search easier and safer. Realtors are members of a regulated profession and are accountable, significantly reducing the risk of getting scammed. They also have access to legitimate landlords and can use their experience to help you safely find the rental you want and can afford.

 

How International Students Can Avoid Rental Fraud

International students are prime targets for rental scams. Contact the school's off-campus housing office when searching for housing to avoid rental fraud. They can recommend and connect you with landlords and accredited property managers.

International students in Canada are prime targets of rental scams.

 

When to be Suspicious of Rental Scams:

 

Trust your instincts if you are suspicious of a landlord or property manager. Exercise caution if the landlord:

• Rushes you to sign you up. That's a warning sign. Responsible, legitimate landlords will run a background check and ask for credit reports, references, proof of employment, etc. This protects both the landlord and the tenant.
• Doesn't care about your background (credit score, employment, references, etc.). Beware! Things may be shady.
• Changes the rental price suddenly. Always ensure you have a firm agreement with a firm price (and no last-minute hidden fees). The verbal rental price that the landlord offers should match the price on the lease.
• Switches the rental unit. The ad for the rental online looks great, but when you show up, the landlord shows you an inferior rental at the same price.
• Does not provide their name and address on the rental lease.

 

 

What to Do If You've Been a Victim of a Rental Scam

If you have been a rental scam victim, you can report it to the Canadian Anti-Fraud Centre, the RCMP, or your local police.

 

Renting Safely in Canada

Renters in Canada do have rights. Each province and territory has landlord-tenant legislation, and the rules and regulations vary by province. For example, the legislation in Ontario, Canada's largest province, is called the Residential Tenancies Act. This legislation protects renters. However, recognizing and avoiding scammers when renting is your responsibility.

Newcomers remain prime targets for rental scams in cities like Toronto, Vancouver, and Calgary. By arming yourself with these tips, you can rent your first home in Canada safely and successfully.

 

If you have a question, please email us at rentals@prepareforcanada.com

Steve Tustin is the Editor for Rentals for Newcomers and a contributing editor for Prepare for Canada. He is also the former managing editor of Storeys.com and a former senior editor at the Globe and Mail and the Toronto Star.

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