This story is a warning — and a lesson — for anyone searching for a rental home. This happened on one of our brokerage’s listings recently.
A property listed for lease by a Realtor representing a landlord is copied by a scammer and posted on Facebook Marketplace at a lower, more attractive price.
Without their knowledge, the Realtor’s name was used, with the scammer’s false contact information.
Naturally, the attractive price lured in a prospective tenant, who reached out using the FB scammer’s false contact info.
The scammer played two (2) roles; professional Realtor (to the victims) and prospective tenant (to the actual Realtor).
-
To the Victims, the scammer asked for and received all the typical documents: job letter, government-issued ID, and pay stubs.
-
To the actual Realtor, the scammer reached out pretending to be the prospective tenant and booked a showing, using the victims real names. All communications were by email, text or WhatsApp.
The next day, the victims viewed the property with the actual Realtor. After the showing, the victims followed up with the scammer — still believing it was the actual Realtor and agree to move forward:
-
The victims electronically signed a fake lease agreement (in a fake landlord’s name).
-
The victims e-transfered (directly to the scammer) first and last month’s rent PLUS a security deposit. As Realtors, we know unequivocally that this money should have gone to the real estate brokerage’s trust account.
-
Once the money was received, the scammer cut off all communication with both parties.
-
The actual agent, who was also being duped, follows up and receives no response and naturally assumes the prospective tenants (victims) are not interested.
-
The victims, having also been cut off from all communication, contact the actual real estate office demanding answers and believing the actual listing agent had taken their money.
-
That’s when the real estate office discovered what actually happened and advised the victim to file a police report.
This is a heartbreaking reminder: rental scams are evolving and can happen to anyone.
Our brokerage was told by the police that this has become a daily occurrence and there’s no chance that the victims will ever recover the thousands of dollars that was stolen from them.
With that being said, here are some ways Tenants can protect themselves in these situations.
Verify the Landlord or Property Manager
Before proceeding with any rental agreement, confirm the identity and authority of the person claiming to lease the unit. Ask for a valid photo ID and documentation proving ownership or management rights, such as a property tax bill or utility statement.
You can also verify ownership through the Ontario Land Registry via ServiceOntario, or email us and we can do a title check for you at no cost.
Be especially cautious if the individual claims to be ‘out of the country’ or refuses to meet in person.
Work with a Real Estate Professional
Realtors are regulated professionals with access to verified listings and a legal duty to act in their client’s best interest.
If you find a listing online or are contacted digitally, take the time to independently verify the Realtor’s registration and brokerage using RECO’s website.
You may also want to check that their cell phone and email address are the same on their website as they are in the advertisement.
Deposits should never be sent directly to a landlord for a listing through a brokerage — the funds are ALWAYS held in a regulated trust account that pays the agent fees and releases the balance to the lanlord.
In most cases, tenants are not responsible for the agent’s commission; the landlord typically covers that cost.
You can read more about working with your own tenant’s agent to secure a lease here.
Insist on a Proper Lease Agreement
Always insist on using the Ontario Residential Tenancy Agreement, which is required by law for most residential rental situations.
Avoid sending money or committing to a rental without reviewing and signing this standardized lease. A landlord who is reluctant to use the standard form may not be legitimate.
Avoid Untraceable Payment Methods
Do not send funds using wire transfers, cryptocurrency, gift cards, or any other untraceable payment methods. Use secure, traceable methods such as e-transfer, and always retain copies of all payment receipts and communications.
If working with a Realtor, ensure the deposit is made to their brokerage, not directly to the landlord.
Visit the Property in Person
View the unit either in person, or in the absolute worst case through a live video call, before agreeing to rent it.
Be cautious of situations where:
- You are denied access to the unit or keys
- Multiple prospective tenants are being shown the property simultaneously
- There is urgency or pressure to commit without a viewing
Search the rental address online to identify any suspicious listings or consumer warnings… or even any crimes that took place previously. Use tools like Google Street View to confirm that listing photos match the actual location before visiting.
Check local community forums or social media groups for alerts or experiences related to the address or individual.
Be Alert to Red Flags
Remain vigilant for the following signs of a potential scam:
- Rent pricing advertised significantly below market value
- Inconsistent pricing for the same property across different platforms (e.g., Realtor.ca vs. Facebook Marketplace)
- High-pressure tactics to send money quickly
- Poor grammar or vague, evasive responses
- Refusal to answer reasonable questions about the landlord’s ownership or about the property
- Duplicate listings posted under different names
Document Everything & Verify In-Person
Maintain thorough records of all communication, including emails, text messages, receipts, and signed documents. Take screenshots of listings and any other relevant exchanges and back them up securely.
Clear and honest communication is a crucial part of fraud prevention. Relying solely on text or email exchanges is risky. A legitimate rental arrangement should always include verbal communication — ideally in person at the brokerage office or at minimum, over a phone call.
If You Suspect a Scam
Stop all communication with the suspected fraudster immediately.
Then, take the following steps:
- Report to your local police department
- Contact the Canadian Anti-Fraud Centre or call 1-888-495-8501
- Inform your financial institution if you have sent any funds
