Five Typical Cases of Rental Scams

Our introduction to Toronto\’s rental scam scene was a basement apartment at 589 Annette St. in the Junction. At first, we were optimistic about snagging the perfect rental, but things took a turn faster than the city\’s ever-changing weather. When we looked closer at their response, we found several warning signs that usually mean it is a rental scam.

Remote Landlord: The supposed landlord claimed to be in Texas and expressed an inability to meet in person, a classic manoeuver employed by scammers to maintain distance and anonymity.

Overly Generous Terms: The terms of the rental, including an unbelievably low price of $900 for a one-bedroom and the inclusion of utilities, raised suspicions. They were so nice that they allowed any type of pet. Such generosity in a Toronto property rental often signals a scam.

Pressure to Act Quickly: The communication emphasised a desire for \”future collaboration and friendship\” and urged a swift completion of the rental application. This sense of urgency is a common tactic to rush potential victims into making impulsive decisions.

Unusual Contact Information:  For example, use a personal email address (outlook.com) rather than a professional.

Request for Personal Information: The comprehensive rental application requested personal information, including full name, workplace details, address, and the number of children. This is a red flag for potential identity theft.

The tipping point occurred when we stumbled upon another rental ad featuring the exact same text as the suspicious email but for an entirely different property. As a result, this greedy individual made an amateur mistake and was caught red-handed. It seems their copy-and-paste skills were more consistent than their criminal finesse!

Here are some other ways of scamming renters.

Case 1 – Scammer claims to be abroad, asks for first and last to secure rent, and escalates requirements

The fraudster creates a fake apartment listing on a rental website with an enticingly low price, claiming to be an overseas landlord with a compelling backstory. The offer includes attractive perks, such as furnishings and utilities.

These individuals then ask victims to transfer a substantial sum, typically the first and last month\’s rent, to secure the apartment. However, the scammer often escalates the scheme by demanding additional funds under various pretexts.

Unfortunately, the scam preys on the urgency and desperation of individuals seeking budget-friendly housing, making them more likely to overlook red flags.

To avoid falling victim to rental scams, never feel pressured to send money before signing a lease, be cautious with landlords claiming to be abroad, and always visit the property in person and meet the landlord before making any payments.

Case 2 – Scammer rents long-term a short-term property that is not theirs

The fraudsters exploit the rental market by renting a property on a short-term basis and then fraudulently advertising it as a long-term rental. Prospective tenants, lured by the seemingly legitimate listing, visit the property, and are asked to pay the first and last month\’s rent upon expressing interest.

The scammers, posing as landlords, provide keys to the victims, who only discover the deception when they are abruptly evicted the next day, often upon the arrival of a cleaning service.

The fraudsters target individuals urgently searching for housing, taking advantage of their vulnerability and urgency in a competitive rental market.

To protect themselves against such scams, renters should scrutinize landlord identities, request identification before payments, verify ownership, and exercise caution when asked for deposits in advance, particularly if the landlord claims to reside in another city or country.

Case 3 – Fraudster poses as landlord or property management and communicates new payment method

This rental scam involves scammers posing as legitimate landlords or property management companies and contacting current tenants. In this scenario, the scammers inform the tenants that there has been a change in the method of rent payment or provide a new email address for sending rent money.

The unsuspecting tenants, trusting the communication to be legitimate, follow the instructions and send their rent to the fraudulent account. They only discover the scam once the real landlord says their payment is late.

This is a modern iteration of a scam that occurred in Toronto many years ago. A fraudulent property manager living in a rental building began collecting cash payments from several tenants. The impostor eventually left the country and fled with the money.

This type of con preys on the trust between landlords and tenants and takes advantage of changes in payment methods to divert funds to the scammers.

To avoid issues, verify any changes in property management directly with the landlord or management company and being cautious about sharing financial information based on unsolicited communications.

Case 4 – Prospective roommate sends a fraudulent check with a higher amount and asks to return the surplus

Another type of rental scam involves roommate fraud. In this scenario, scammers pose as prospective roommates who claim to be out of town or from abroad. This person sends a fraudulent check, often for an amount higher than the agreed-upon deposit. They then request the victim to send back the surplus amount via check or wire transfer.

The victim, thinking they received a legitimate deposit, complies. However, when it becomes clear that the initial check was fraudulent, it\’s usually too late to recover the funds.

This scam exploits the trust in potential roommates and leverages the urgency of finding accommodation, particularly in tight housing markets with high demand.

It emphasises the importance of thorough verification and caution when dealing with financial transactions related to rentals.

Case 5 – Scammer uses legitimate company name and logo to ask for first and last

The supposed property owner posts an appealing ad at a reasonable price, claiming to be overseas, and says a third-party real estate company will handle the remote rental process.

Through seemingly official company documents and emails, the alleged company asks for a substantial upfront payment before viewing the property. The scammers use without authorization, the name and logo of a legitimate real estate firm.

To avoid this scam, conduct further investigation into the firm and check for inconsistencies, leading to uncovering the fraud.

This incident highlights the evolving complexity of rental scams, emphasising the importance of thorough verification and caution, especially in competitive housing markets.

Author: torontoapartmentsforrent