Rental scams that concentrate on newcomers are widespread in standard settlement cities like Toronto, Vancouver, and Calgary. The rise of on-line platforms additionally makes it simpler for scammers to focus on newcomers and worldwide college students. So, it’s very important to know how you can spot and keep away from scams. Rental scams in Canada are widespread, and the precise variety of circumstances is tough to pinpoint as a result of many individuals don’t report them. Uncover ten tricks to keep away from expensive rental fraud, monetary loss, and heartache.
88% of Canadians have been focused by fraud, and 19% have been victims. Greater than half of these focused (56%) didn’t report it. Scams and fraud value Canadians $638 million in 2024.
Scotiabank: Influence of economic fraud on Canadians
What’s Rental Fraud?
Rental fraud includes folks falsely posing as landlords or property managers to get your cash or private data.
As hire costs drop and the provision of rental items will increase, newcomers and college students stay susceptible to rental fraud. In line with police, there have been 381 studies of rental scams in Toronto in 2024.
10 Tricks to Keep away from Rental Scams
1. Conduct Thorough Analysis
Analysis is your first line of protection. Confirm the itemizing by cross-referencing the deal with and pictures. Use instruments like Google Maps to make sure the property location matches the outline.
Scammers typically use the identical property photos for a number of listings. Use reverse picture search instruments to verify if the images seem on different rental platforms or listings. It’s doubtless a rip-off in the event you discover duplicates with totally different contact data.
2. Know the Median Rental Value in Your Metropolis
As a part of your analysis, examine the median rental worth within the metropolis you wish to hire. Be suspicious of rental costs nicely beneath the median (too good to be true!) It may very well be a rental rip-off and a warning that one thing isn’t proper.
3. Use Rental Platforms that Confirm Landlords
Official rental platforms in Canada provide extra safety measures and confirm landlords. These platforms have guidelines for locating and eradicating pretend listings. Selecting a good platform corresponding to Leases for Newcomers will improve your safety and peace of thoughts.
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4. Discover Out Who Owns the Property
The property proprietor’s identify (particular person or firm) have to be on the lease. If it’s not, stroll away. Don’t settle for anybody’s provide to “ship the paperwork to you later.” That’s a rental rip-off warning signal.
Conduct a fast on-line search of the owner’s identify to disclose any earlier complaints or points.
5. Keep away from Money Offers or Upfront Funds
Money-only offers are the primary rental rip-off and an indication that one thing is fallacious as a result of you possibly can’t observe money. It’s a purple flag if a landlord asks for money or an e-transfer. The easiest way to guard your self is to keep away from money offers.
The identical goes for upfront wire transfers or reward card funds. Scammers will ask for these uncommon cost strategies as a result of they’re tough to hint and get better.
Scammers ask for a cost or deposit of first and final month’s hire earlier than you signal the lease or see the property. In some cities, this might simply be $4,000. However they vanish after they get your cash. These scams exploit the aggressive nature of rental markets, the place potential tenants really feel stress to safe a property rapidly.
6. Keep away from Subleasing Rental Scams
Whereas widespread, subleasing from the unique tenant will be the shakiest factor you will get your self into. Checking whether or not the tenant has the best to sublease the rental to you is tough. And you may by no means make sure you’re not changing into a part of a rental rip-off.
7. Watch out for the “Intermediary” Rental Rip-off
Rental scammers use categorized web sites corresponding to Craigslist and Kijiji, posing as a “intermediary” licensed to hire a spot to you. They’ll meet you on the deal with (which is often correct) however will inform you they will’t entry it.
The scammers discover the rental on one other actual property platform, take the photographs and outline, and place the information into a web-based advert. The intermediary then collects a rental cost, safety deposit, and different funds that may be a part of a rental settlement and disappear together with your cash.
8. View the Property in Individual
All the time view the property in particular person, or ship a trusted particular person, earlier than making any commitments. This step allows you to verify if the property exists. It additionally means that you can meet the owner or property supervisor. If the owner makes excuses to stop an in-person viewing, it ought to elevate purple flags.
Digital excursions could be a helpful first step. Nonetheless, they need to not change a go to in particular person. Scammers can simply pretend or change on-line content material. They might present a rental that appears wonderful on-line, however if you present up, they present you an inferior rental on the similar worth.
9. Signal a Written Lease
Verbal or handshake agreements are one other device rental scammers use. So, all the time signal a tough copy of the rental settlement (or lease). A tough copy is preferable, however e-leases have gotten widespread. The settlement ought to embrace names and addresses for the owner.
A lease settlement outlines the rental phrases, worth, and circumstances. Watch out for imprecise language or lacking clauses. A lease protects the owner and the tenant and ensures either side perceive their rights and duties.
If attainable, guarantee the owner is current if you each signal the lease and get a replica. The lease ought to embrace the owner’s identify, deal with, and phone quantity.
10. Work with a Actual Property Agent
A licensed actual property agent may help you discover a rental, making your search simpler and safer. Actual property brokers have entry to professional landlords, may help you discover the rental you need, and scale back the chance of getting scammed.
How Worldwide College students Can Keep away from Rental Scams
Worldwide college students are prime targets for rental scams. When looking for housing, contact the varsity’s off-campus housing workplace. They’ll suggest and join you with trusted landlords and property managers. If you happen to’re looking for scholar lodging, discover out the important thing issues to think about.
Belief Your Instincts if You Suspect a Rental Rip-off
If one thing concerning the rental course of feels off or too good to be true, take a step again. Belief your instincts. The urgency to safe housing mustn’t overshadow your judgment. It’s higher to take the time to vet a list than to be a sufferer of a expensive rental rip-off.
Find out how to Report Rental Fraud
Contact Native Authorities:
When you have been a rental rip-off sufferer, you possibly can report it to the Canadian Anti-Fraud Centre, the RCMP, or native police.
Report back to the Rental Platform:
Report fraudulent listings on to the platform. They take consumer security significantly and can take motion towards fraudulent listings.
Abstract
Rental scams in Canada typically goal newcomers in standard cities like Toronto, Vancouver, and Calgary. By arming your self with the following pointers, you possibly can keep away from monetary loss and heartache and safely hire your first dwelling in Canada.
WRITTEN BY
Steve Tustin
Senior Editor, Put together for Canada
Steve Tustin is the Editor for Leases for Newcomers and a contributing editor for Put together for Canada. He’s additionally the previous managing editor of Storeys.com and a former senior editor on the Globe and Mail and the Toronto Star.
© Put together for Canada 2025
