Beware of Rental Scams: Tips to Keep You Safe
What are Rental Scams?
Rental scams happen when someone pretends to rent out a property that doesn’t exist or that they don’t actually own. Scammers will try to get your money or personal information using these fake listings. The pictures and details might look real, but there are steps you can take to make sure the offer is legitimate.
How to Spot a Rental Scam
1. The Price Seems Too Good to Be True: If the rent is much lower than other similar units in the neighbourhood, this could be a warning sign. Scammers often list properties at a bargain price to attract more people.
2. Pressure to Move Fast: In today’s market, renters may feel the need to act quickly. But if the person listing the property is pushing you to pay a deposit or sign an agreement before you’ve even seen the apartment, be careful. They might say it’s to book the viewing or “secure” the property, but it could be a scam.
3. They Ask for Money Upfront: Be cautious if you are asked to send money online, especially before you have met them or seen the property. This is a common tactic in scams.
4. Strange Payment Methods: If they want you to use unusual payment methods like wiring money, paying with gift cards or cryptocurrency, or using a money transfer app, that’s a red flag.
5. No Face-to-Face Meetings: If the landlord makes excuses for not being able to meet you in person or show you the property, it might not be legitimate. Be extra cautious if the landlord claims to be out of town and offers to mail you the key after you’ve signed the lease.
Tips to Avoid Rental Scams
• Visit the Property: Always try to see the property in person or ask someone you trust to go see it if you aren’t able to be there to see it yourself. Sometimes landlords will show you a similar unit if the available space is inaccessible or under renovation, but its best to insist on seeing the specific unit before agreeing to anything.
• Research the Landlord or Agent: Look up the person or company listing the property. You can check online reviews, social media accounts, or even ask for references.
• Distant Renters: If you are moving to Nova Scotia, be cautious with listings found on online classified sites. Think twice before sending any money to individuals that appear on the posting — it’s best to only send deposits to existing property management companies with publicly listed contact information.
• Look for Online Listings: Check if the property is listed elsewhere and compare the details. If you find the same ad listed with different contact information or details, it could be a scam. Consider doing a reverse image search to doublecheck that photos aren’t reused in other postings.
• Never Share Personal Information: Don’t give out personal details like your Social Insurance Number (SIN) or banking information until you’re sure everything is legitimate, and you have a signed lease. Your SIN is not necessary to do a credit check.
• Use Secure Payment Methods: When it’s time to pay, use methods that have protections in place, like a cheque.
Before You Rent
• Deposits and Rent in Advance: In Nova Scotia, any payment made by a tenant before entering a lease is considered a Security Deposit and must not be greater than one half of one month’s rent. Additional deposits for pets or other considerations are not allowed. Similarly, any requests for “first and last” or payment of several months rent in advance is not permitted.
• Verbal Leases: Ideally, the security deposit should be exchanged at the signing of the lease. But if you do not sign a lease, the payment of money establishes a verbal lease with all the rights and responsibilities of the Standard Form of Lease. A verbal lease defaults to a month-to-month lease.
• Landlord Contact Details: Ensure you have accurate contact information for the landlord or rental company if you pay a deposit, “holding fee,” or any other amounts before signing a lease. This will allow you to file for mediation or a hearing if problems arise later.
• Roommates: When choosing a roommate, be sure you trust the person and their ability to pay their expenses. Each tenant is responsible for the whole rent and a landlord can pursue one or all tenants for unpaid rent, regardless of who is failing to pay their “share” of the total rent. How co-tenants choose to split everybody’s “share” is a personal matter.
• Subletting: If you are considering renting from someone who is subletting their unit, double-check that the landlord has given permission and ask to meet them. Ask the current tenant if they have any plan to return to the address in the future. If not, you may want to talk about a lease takeover or a brand-new lease. A takeover, or assignment, is when you assume the existing lease term, rules and rent amount. A new lease would be a fresh agreement between you and the landlord and does not involve the previous tenant.
What to Do if You Suspect a Scam
If something feels off, trust your instincts, and think twice:
Report Suspicious Activity: Report any suspicious listings or activities to the websites where they are posted. You can also contact the Canadian Anti-Fraud Centre to report rental scams.
Be Cautious in Your Rental Research: Double-check all details and information before committing to a new rental agreement. Verify the legitimacy of the landlord or rental company as best as you can before making any payments or providing personal information.
Security Deposit: If you have given a security deposit and suspect a scam, you can file an Application to Director with the Residential Tenancies Program. You’ll need to make sure you have accurate landlord contact information, including the landlord’s address and phone number.
If you’ve entered into a legitimate lease and are having issues with your landlord, take a look at the guides, policies, and forms available through Nova Scotia’s Residential Tenancies Program.
