Rental Scams in Canada: How to Protect Yourself as a Landlord or Renter

Let’s be real—renting or listing a property can feel like navigating a minefield these days. Whether you're a renter scouring the market for your perfect space or a landlord trying to find someone who won’t turn your home into a frat house, there’s one thing we all want: peace of mind.

Unfortunately, the rise of rental scams in Toronto can make that tricky.

From fake listings to shady deposit demands, fraudsters are out there trying to take advantage of honest folks like you. But don’t worry, because with the right knowledge and a few key tips, you can keep your money where it belongs—in your pocket.

Like, a nosy neighbour I know what's really happening and in this post, I'm dishing the dirt and breaking down some real-life examples of scams happening right here in Canada and giving you the inside scoop on how to protect yourself, whether you're looking to rent or list. So let's get into it! ⬇️

Oh, and stick around to see how using a trusted real estate agent (ahem, like yours truly) can save you a ton of hassle—for renters, it’s 100% free!

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Scams Targeting Renters

1. The Fake Listing Scam
   Imagine finding your dream apartment online, only to learn after transferring your deposit that the property doesn’t even exist. This is exactly what happened to a Toronto couple who found a fake rental on Kijiji and lost their deposit.
   Tip: Always verify the listing by visiting the property in person. If something feels off or too good to be true, it probably is.
2. Bait-and-Switch Schemes
   Some renters, like a Toronto student searching for a downtown apartment, have experienced a bait-and-switch scam. They’re shown a great apartment but end up being offered a lower-quality one once they've committed.
   Tip: Always ensure the property shown matches the one you’re agreeing to rent. Don’t sign anything until you’ve seen the exact unit in person.
3. Advance Payment Fraud
   A family in Toronto lost rent and deposit money after wiring funds for a property they were never allowed to see in person. This classic advance payment scam can happen to anyone if they’re not careful.
   Tip: Avoid wiring money before seeing a property, and always ask for a formal lease agreement.
4. Pressure Tactics from "Overseas Landlords"
   One common scam involves supposed landlords who claim they’re overseas, pushing renters to send deposits quickly or risk losing the property.
   Tip: Legitimate landlords won’t rush you. Take your time, verify all information, and don’t be pressured into making fast decisions.
5. Identity Theft Scams
   Renters may also fall victim to identity theft when scammers request sensitive personal information, like Social Insurance Numbers (SIN) or tax details.
   Tip: Landlords don’t need your SIN for a rental application. Be cautious about what personal information you provide.

Scams Targeting Landlords

1. Phishing Scams
   Landlords have been targets of phishing emails that pose as rental platforms, tricking them into sharing personal or financial information. Ontario landlords were affected by a phishing scam in 2021 that resulted in compromised personal data.
   Tip: Always verify the source of emails before clicking on any links, especially if they’re asking for sensitive information.
2. Fake Tenant Scams
   Sometimes, scammers will pose as prospective tenants, offer fake financial information, or even present fraudulent documents to secure a rental, only to disappear after the first month or worse—never pay at all.
   Tip: Always do a thorough background check on potential tenants, including verifying their employment and running a credit check.
3. Rental Agency Scam
   A Vancouver woman was scammed by a fake rental agency that charged her money for a non-existent listing, costing her thousands of dollars.
   Tip: Landlords should also be wary of third-party agencies that claim to manage rentals but ask for large upfront payments without proof of legitimate services.

Why Using a Real Estate Agent is a Smart Move

Now, you might be wondering: How can I avoid these scams entirely? One of the best ways to protect yourself—whether you're a landlord or renter—is by using a professional real estate agent. Here’s why:

For Renters: It’s 100% Free

As a tenant, you don’t pay a dime to work with a real estate agent! The landlord covers the agent’s fees, so you get all the benefits without the cost. From access to verified listings to having someone handle all the paperwork, a real estate agent makes the rental process smoother, faster, and scam-free.

Advantages:

• Agents only work with legitimate, vetted properties.
• You get access to more listings, including ones that aren't publicly advertised.
• They handle lease negotiations and ensure your interests are protected.

For Landlords: More Security, Less Hassle

Agents don’t just bring you tenants; they bring you the right tenants. From thorough background checks to marketing your property to a wider audience, agents ensure your property gets rented out quickly to responsible tenants. And because they do all the legwork—like conducting interviews and showing the property—you save time and avoid costly mistakes.

Advantages:

• Full marketing support, including professional photography and listing.
• A broader pool of pre-qualified tenant candidates, ensuring you get reliable renters.
• All the paperwork, from the lease agreement to credit checks, is taken care of.

How to Stay Safe as a Renter or Landlord

Whether or not you decide to work with an agent, always keep the following tips in mind to avoid scams:

• Meet in Person: Whether you're a landlord or renter, always meet face-to-face to inspect the property or to meet the tenant.
• Get Everything in Writing: Verbal agreements leave too much room for ambiguity. Always ensure the terms of any deal are clear, written down, and signed.
• Verify the Listing: Check the legitimacy of listings and always visit the property before handing over any money.
• Research the Landlord/Tenant: Run background checks and verify all documentation.

Final Thoughts

Look, the rental market can feel like the Wild West at times—scammers, misleading ads, and sneaky tactics around every corner. But that’s why you’ve got people like me—a trusted Toronto real estate agent who’s been through it all. Whether you're a landlord looking for the perfect tenant or a renter trying to avoid the pitfalls, the key takeaway is this: don’t go it alone.

A seasoned real estate agent (ahem, me!) knows how to navigate these traps and ensure you're always one step ahead. And for renters? It’s 100% free to have an agent by your side. Yep, you read that right—free. No hidden fees, no surprises, just support, expertise, and peace of mind. So, why risk getting caught up in a scam when you can have professional backing from start to finish?

At the end of the day, the best defense is a strong offense. Stay informed, stay cautious, and if you’re looking to rent or need help finding tenants, you know who to call. I’m here to help!

Ok! That's it for now. Thanks for reading and have a great day! 👋 - Tyson CR

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