March 26th, 2012

Renters Beware!

The Calgary Real Estate Board is warning people about a scam that has recently popped up, aimed at would-be renters through online classified sites.

It says property details, photos and the name of the realtor listing a property have been used from other sites where the information is legitimately posted.

What is the Scam?

Bob Jablonski, CREB’s president, describes how the scam works: “The scammer impersonates the realtor by using his or her name to respond to inquiries from prospective renters. The scammer is unavailable to meet the prospective renter in-person at the property and proposes that funds be forwarded to rent the property. The ‘owner’ will, in turn, make arrangements for someone to meet the renter at the property and hand over the keys. As you can imagine, no one shows up at the property to meet the renter.”

Is There Any History Behind This?

The scam has been active in Alberta in the past and may have reappeared due to the diminishing inventories of rental properties, says CREB.

In a statement, Madeline Sarafinchan, the Alberta Real Estate Association’s president, said: “The risk for citizens falling victim to this type of scam becomes greater in markets where there are fewer rental vacancies, such as what we are starting to see in some regions in Alberta. When demand is high and vacancies low, consumers may take greater risks to secure a rental situation – risks that they wouldn’t necessarily otherwise take.”

When using online classifieds websites, consumers are advised to ensure all financial transactions take place locally and in person, adds CREB.

Similar rental scams have been seen in Ontario.  The Ontario Landlord Association has discussed such scams in their Tenant Forums.