How to Recognize and Avoid Rental Scams

In Calgary, where vacancy rates have remained low for several years, finding a rental property has become increasingly challenging. This situation has led to inflated rental prices and intense competition among prospective tenants. Unfortunately, it has also created opportunities for scammers to exploit desperate renters. Recently, a Calgary senior fell victim to such a scam, losing thousands of dollars in the process.

Scammers typically target individuals struggling to secure housing, deceiving them into parting with large sums of money or divulging sensitive personal information such as social insurance numbers or banking details. Therefore, it is crucial for renters to exercise caution and remain vigilant for signs of fraudulent activity when dealing with landlords or property managers.

Here are essential tips to help you and your clients avoid falling prey to rental scams:

Identifying Common Scams and Warning Signs

Advertising discrepancies:
- Lack of or outdated photos in listings
- Spelling errors in advertisements
- Duplicate listings on the same platform
- Use of non-local phone numbers or email addresses

Viewing complications:
- Difficulty scheduling viewings with the landlord or property manager
- Insistence on virtual viewings or refusal to meet in person
- Frequent cancellations or rescheduling of appointments
- Inability to access the property during scheduled viewings or no-shows

Deposit and rent payment:
- Requesting payment of deposits, rent, or application fees before viewing the property or signing a lease agreement

Personal information requests:
- Soliciting sensitive personal information before necessary, such as banking details or SIN numbers
- Asking for personal information before allowing a viewing, beyond basic contact information

Protective Measures Against Scams

In-person property viewings:
- Arrange to view the property in person with the landlord or property manager to verify legitimacy
- Meeting face-to-face helps confirm the individual's association with the property and their authenticity
- If unable to attend personally, consider sending a trusted representative on your behalf

Ask pertinent questions:
- Inquire about the landlord or property manager's credentials and tenure
- Clarify the necessary requirements for renting the property
- Confirm the legitimacy of the brokerage or property management company, including to see if they are registered wih RECA (Real Estate Council of Alberta)

Conduct thorough research:
- Verify the authenticity of property management companies and landlords
- Check for licensing and accreditation through relevant authorities
- Cross-reference information provided with official databases or registries

Report suspected scams:
- Report fraudulent listings to the respective listing platforms
- Notify local authorities and the Canadian Anti-Fraud Centre if you encounter or fall victim to rental scams

By remaining vigilant and taking proactive steps to verify listings and individuals involved, renters can protect themselves from falling victim to rental scams in Calgary's competitive housing market.