B.C. rental scams may be on the rise, BBB says

Whether it’s the B.C. housing crunch or the vacation craze, scams involving property rentals are feared to be on the rise this summer.

The Better Business Bureau says the average amount money lost to these scams has skyrocketed.

“This year so far, we’re seeing a 160 per cent increase in monetary loss for consumers who are victims of vacation or rental scams. We also know that according to the Canadian Anti-Fraud Centre, they’re seeing about an 18 per cent increase in people being victimized by the same type of scams, as well,” Simone Lis with the Vancouver chapter of the BBB said.

The scams often start with an enticing listing, with an urgent-sounding “landlord” wanting a deposit made online to reserve the spot. When the deposit is sent, the “landlord” is never heard from again.

The BBB shared one experience from a B.C. student last summer, when they found a two-bedroom apartment on Craigslist for $1,475 a month.

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“It seemed to be a great deal, so I contacted the landlord. He told me that he had moved to Spain due to work reasons. Therefore, the apartment was vacant, and I could move in anytime,” the student is quoted by the BBB.

The student was told he was using a global rental company to find a tenant and they were given a link to the company.

“Since the company’s policy required me to transfer a deposit before seeing the house, I sent them $3,000 using the link he provided. At first, I could talk with the customer service on the website. But now, I can’t reach them anymore. I tried to find the legitimate founder of the company, only to learn the company had been closed and it was probably a scam.”

Last month, figures from rentals.ca found it costs over $2,300 to rent a one-bedroom home in Vancouver. It costs nearly $3,500 for a two-bedroom.

In addition to low vacancy rates and high demand for rental units, Lis notes the pandemic has played a role in the rise in scams.

“The thing about COVID is it normalized online interaction,” she explained. “So, when you are looking for either a short or long-term rental, you don’t normally get to see someone, which means that when you are getting requests to prove who you are or to send money to secure a space, it feels like something that you would do.”

The amounts victims have lost in these cases range from a couple hundred to over a thousand dollars.

Related article: Dramatic year-over-year increase to rent in Metro Vancouver

Lis says to be cautious about deals. As the adage goes, if it’s too good to be true, it probably is.

“If it’s in this wonderful area and it’s way below market value, something there might be very wrong. So, you really do need to do your checks and balances. If you are solely dealing online, then I would be doing things like Googling the address, Googling the image itself. Sometimes, what you’ll find is that this is an image that’s being used in other sources.”

The BBB urges you to see the property in person and stick to bank cheques or email money transfers — since they can be tracked — and only may payments when you are sure the rental arrangement is legit. You should also always ask for a rent receipt.

A landlord does not need your social insurance number or bank details to check your credit history. They can do that with your full name, current address, and birth date.

The BBB notes landlords are legally required to use the provincial standard lease form, and urges you to ensure the rent price and any inclusions are listed in the lease.

With files from Sonia Aslam