Tips to lower your risk of falling for a rental scam
Credit to Author: Canadian Immigrant| Date: Wed, 23 Aug 2023 18:49:04 +0000
Finding a new place to live is stressful, especially when you are moving cities or countries. And scammers know that people in the midst of moving don’t always have time or capacity to do the necessary research.
Take former Calgary resident Carlha Perez. Perez and her husband were looking to move to Vancouver and came across the perfect apartment located in downtown Vancouver, operated and maintained by a property manager. Although hesitant about not seeing the property in person, Perez was reassured after completing a quick search to confirm that the apartment photos belonged to the correct residential building. After chatting with the supposed property manager Perez and her husband signed a contract and sent the first month’s rent, a security deposit, and a pet deposit, totalling $5,400 by e-transfer.A couple days out from their flight, Perez realized they had fallen for a rental scam when their calls, texts and emails to the property manager went unanswered.
According to Better Business Bureau (BBB)’s 2022 Canadian Risk Report, rental scams are a new entry on the top 10 riskiest scams affecting Canadians. Although few come in contact with this scam (1.1% of overall reports), 4 out of 10 people (42.9%) who are exposed to it end up falling for the scam, with a median loss of $1,600.
“This is a really unfortunate situation where the red flags were very well hidden, but in plain sight,” says Aaron Guillen at Better Business Bureau serving Mainland BC & Yukon. “Not only were the apartment photos most likely taken from a real estate website from years before, but the GST number on the signed contract did not match an actual business and the e-transfer email address wasn’t a professional business account, but a personal one. With such high demand for housing in and around Metro Vancouver, it’s heartbreaking to watch prospective renters become more desperate and fall for similar scams.”
Below are BBB’s four tips to lower your risk of falling for a rental scam:
1. See the property in person. If you can’t visit an apartment or house yourself, ask someone you trust to go and confirm that it is what was advertised. Sometimes photos can be misleading, even if they are actually the real deal. Also ask your landlord questions, such as: prepared with questions for your landlord, such as: What are the rules around decorating the space, such as hanging up a TV or a mirror? What is the timing on the lease? Are there any additional fees outside of the rent?2. Try to avoid paying strangers with cash transfer apps off the bat. Many scammers now ask for payments through Interac e-transfer, Wealthsimple, or PayPal instead of wired funds or prepaid debit/gift cards (as those methods would likely raise more red flags). Only use these apps with people you know or have met in-person. 3. Search online for similar properties. Do a quick search for the listing, landlord’s email address, and phone number. Confirm the legitimacy of a property manager/real estate agent’s GST number on the Government of Canada website. If you find the same ad listed in other cities, that’s a huge red flag. By doing research on similar properties, you can also find the average rate for whatever size space you’re looking for and can figure out if it seems too good to be true.4. Do proper research to find a property manager and movers. Finding good moving companies and property managers can be really tricky. There are a lot of problems and people who might not be ethical. When you use BBB.org, you can see authentic complaints, honest reviews from customers, and a clear rating system. This helps you make smart choices about who to hire.
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