The Top 6 Rental Scams Happening Right Now
Over the past decade, Ontario has seen a proliferation of rental scams and as the rental market continues to tighten, both renters and landlords have become targets of increasingly sophisticated rental scams. Being aware of these scams is essential to avoid financial loss and emotional distress.
Here are the top rental scams happening right now, along with some practical tips on how you can protect yourself.
The Fake Rental Listing
The Scam:
Fraudsters post fake rental listings on popular websites, advertising stunning properties at below-market prices to attract desperate renters. Scammers often request deposits or first and last months’ rent upfront. Victims later discover that the property doesn’t exist or isn’t available for rent.
The Setup:
• The scammer may claim to be out of town and unable to meet in person
• Photos and descriptions are often stolen from legitimate real estate listings
• Victims are pressured into making payments quickly to secure the "deal"
Actions to Take:
• Always view the property in person before sending any money
• Be cautious of landlords who refuse to meet in person
• Verify the listing by cross-referencing it on other platforms or contacting a local real estate professional
Hijacked Ads
The Scam:
Similar to the fake rental listings scam, this scam involves fraudsters duplicating legitimate rental or sale listings, often copying details and photos. They then post the duplicates with different contact information to lure in tenants.
The Setup:
• The listings are usually for real properties that are actually for rent or sale
• Scammers pose as landlords or agents, using the legitimacy of the original listing to gain trust
Actions to Take:
• Insist on seeing the property in person and meeting the landlord or property manager
• Cross-check listings by searching the property address on multiple platforms
• If different posts from the same property have differing contact people and listing prices, make best attempts to speak to all and find the actual owner of the property of the listing agent
Rental Application Fraud
The Scam:
Scammers manipulate rental applications by providing false information, such as fake credit reports, employment letters, or references. This enables them to secure housing they wouldn’t otherwise qualify for.
The Setup:
• Fake documents are often generated using sophisticated software or AI tools
• Fraudsters may even use stolen identities to complete applications
Actions to Take:
• Use trusted tenant screening services to verify application details
• Contact employers and previous landlords directly to confirm references
• Work with professional real estate agents experienced in vetting tenants
The Key Copy Scam
The Scam:
A scammer gains access to a property, often through a short-term rental or open house, and makes a copy of the keys. They then later pose as the landlord or property manager, showing the unit to unsuspecting renters and collecting deposits or rent payments.
The Setup:
• The scammer impersonates the property owner or manager
• Victims pay deposits or rent before realizing they’ve been duped
Actions to Take:
• Landlords should change locks between tenants and consider smart locks for added security
• Renters should confirm the landlord’s identity and verify ownership of the property
• Renters should engage the services of a professional real estate agent experienced in the rental market
ILLEGAL SUBLETS FROM SHORT-TERM PLAFORMS/LEASE TAKEOVER FRAUD
The Scam:
Fraudsters rent properties through short-term platforms like Airbnb or Vrbo, then pretend to be landlords and rent them out to unsuspecting tenants. In another variation, scammers advertise fake lease takeovers for properties they’ve rented short-term, collecting fees from victims
The Setup:
• Properties are shown to potential tenants under the guise of long-term availability
• Scammers collect deposits and rent, then disappear when the victim discovers the lease is illegitimate
Actions to Take:
• Ask for proof of ownership or authorization to rent the property
• Avoid landlords who seem evasive about their identity or rights to rent the property
• Contact the property owner directly if you suspect unauthorized subletting
DEPOSIT OVERPAYMENT/CHEQUE REFUND SCAM
The Scam:
An international tenant expresses interest in renting and sends a cheque for more than the required amount. They then ask for the excess to be refunded. The original cheque later bounces, leaving the landlord out of pocket.
The Setup:
• The scammer claims urgency, such as an imminent move or need for housing
• The overpayment is framed as a mistake or additional funds for moving expenses
Actions to Take:
• Wait for cheques to clear fully before taking action
• Refuse any arrangement involving overpayments and refunds
• Insist on secure payment methods, like e-transfers, and verify the sender’s identity
MY FINAL THOUGHTS
Ontario’s competitive rental market has led to a proliferation of scams. Whether you’re a renter or a landlord, staying vigilant is your best defense. Trust your instincts, and if something seems suspicious, take the time to investigate further. Awareness and proactive measures can save you from becoming the next victim.
