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Mar 18, 2024

Tips and tricks for spotting rental scams

By CREB®

In Calgary, vacancy rates have been incredibly low for the past few years. This means that many people looking for a place to rent are having a tough time finding one. With so few options available, prices for rental properties have skyrocketed, and it's become common for multiple people to apply for the same place. 

As a result, it can take months for renters to finally secure a place to live. Unfortunately, this situation has created an opportunity for scammers to take advantage of desperate renters. This most recently happened to a Calgary senior, who found himself in the middle of a rental scam, which led him to be out thousands of dollars.

These scammers prey on people who are struggling to find a place to live, tricking them out of thousands of dollars and even stealing their personal information like their SIN number or bank details. It's really important for renters to be careful and watch out for any signs that something might not be right when dealing with landlords or property managers.

Here are some important tips to help you and your clients avoid falling victim to a rental scam.

Common scams and red flags to watch for

  • Advertising errors and inconsistencies

    • No photos, limited photos or old photos
    • Spelling mistakes in listings
    • Duplicate or double listing on the same listing website
    • Fake phone numbers (non-local numbers) or email addresses

  • Showing snags

    • Difficulty booking a viewing with the lister.
    • Lister is pushing for virtual viewings only or refusing to meet in person
    • Frequent cancellations and rebookings
    • Not able to access the property on the day of the viewing, No shows to scheduled viewings

  • Deposits and rent collection

    • Requesting a deposit, rent, or an application fee before viewing the property or signing a lease agreement.

  • Personal information requests

    Providing personal information is often mandatory when applying for a rental with property management companies or private owners. Before providing this type of information to the lister, please verify the lister before sending any personal information.

    • Requests for banking information
    • SIN number requests
    • Request for personal information before viewing (outside of contact information, cell phone number or email address)

Tips on how to protect yourself from getting scammed

  • View the property in person

    In our virtual world, the convenience of taking property tours from the comfort of your couch can be handy. However, it can be very easy for scammers to hide behind a camera and deceive you into applying for a fake listing.

    Take the time to arrange a viewing in person with the landlord or property manager. This will allow you to put a face to the calls or emails you have been receiving. Most scammers will often refuse to meet in person, which should instantly raise your internal alarm.

    Meeting in person also allows you to visibly see that the individual you have been speaking with does indeed have access to the property they are advertising.

    In some cases, in-person viewings are not possible for tenants coming from out of town.  If possible, have a trusted friend, co-worker, or family member conduct the viewing on your behalf.

  • Ask the hard questions

    Sometimes, asking specific questions can be uncomfortable or awkward for some when first meeting the property manager or landlord. However, asking these questions is vital to protecting yourself from scammers.

    Asking the right questions can help you spot inconsistencies or hesitations in the property manager or landlord's answers. Licensed property managers and landlords can answer these questions confidently and without hesitation—some may even provide proof. Below are some good questions to ask when viewing a property.

    - Are you a licensed property manager or the owner of the property?
    - Are you legally able to lease this property to me?
    - How long have you been managing/owned this property for?
    - What will you require from me to rent the property from you?
    - What Brokerage are you working with?

  • Do your homework

    The rental process can be stressful, and skipping or ignoring some common red flags may happen. However, conducting your research before sending over your information and money is vital to protect you from these scammers.

    If you are working with a property manager, this process is straightforward. When looking at the rental listing, most property management companies will have their brokerage name, website and contact information somewhere in the advertisement. Look into this information and see if everything looks to be legit. Another step that can be taken is verifying that the property manager is licensed to conduct property management services in Alberta.

    The Real Estate Council of Alberta provides the licensing for all property managers in Alberta. Suppose the property manager you work with has identified themselves as a licensed property manager. In that case, you can confirm their license status on the RECA website
    . This is the best and most accurate way of verifying your future landlord.

    Working directly with a private property owner may be tricky when verifying that they do indeed own the property and are legally able to rent it. Outside of meeting with this individual in person, tenants can also look up the title of the property to verify that the name of the person you are interacting with matches the name on the title of the property.

    Land titles can be purchased (check website for price information) through Spatial Information System (SPIN2) or at a local registry agency.

  • Report any scams you come across

    In your search for a rental, you may encounter or have interacted with a scam listing. Although you were able to spot the scam, the next person may not. To avoid the next person from becoming the scammer’s next victim, report the listing through the listing platform's website.

    Most rental listing websites allow you to report suspected or suspicious listings, and it is vital to keep these bad actors away from unsuspecting tenants.

    If you or anyone you know has fallen victim to these rental scams, inform the local authorities and report the matter to the Canadian Anti-Fraud Centre.


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