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Written By
Steve Tustin
May 26, 2025
•Housing
Rental scams that target newcomers are common in popular settlement cities like Toronto, Vancouver, and Calgary. The rise of online platforms also makes it easier for scammers to target newcomers and international students. So, it’s vital to know how to spot and avoid scams. Rental scams in Canada are widespread, and the exact number of cases is hard to pinpoint because many people don’t report them. Discover ten tips to avoid costly rental fraud, financial loss, and heartache.
88% of Canadians have been targeted by fraud, and 19% have been victims. More than half of those targeted (56%) did not report it. Scams and fraud cost Canadians $638 million in 2024.
Scotiabank: Impact of financial fraud on Canadians
Rental fraud involves people falsely posing as landlords or property managers to get your money or personal information.
As rent prices drop and the supply of rental units increases, newcomers and students remain vulnerable to rental fraud. According to police, there were 381 reports of rental scams in Toronto in 2024.
Research is your first line of defense. Verify the listing by cross-referencing the address and images. Use tools like Google Maps to ensure the property location matches the description.
Scammers often use the same property images for multiple listings. Use reverse image search tools to check if the photos appear on other rental platforms or listings. It’s likely a scam if you find duplicates with different contact information.
As part of your research, investigate the median rental price in the city you want to rent. Be suspicious of rental prices well below the median (too good to be true!) It could be a rental scam and a warning that something isn’t right.
Legitimate rental platforms in Canada offer more security measures and verify landlords. These platforms have rules for finding and removing fake listings. Choosing a reputable platform such as Rentals for Newcomers will increase your security and peace of mind.
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REGISTER FOR THE WEBINARThe property owner’s name (individual or company) must be on the lease. If it’s not, walk away. Do not accept anyone’s offer to “send the documents to you later.” That’s a rental scam warning sign.
Conduct a quick online search of the landlord’s name to reveal any previous complaints or issues.
Cash-only deals are the number one rental scam and a sign that something is wrong because you can’t track cash. It’s a red flag if a landlord asks for cash or an e-transfer. The best way to protect yourself is to avoid cash deals.
The same goes for upfront wire transfers or gift card payments. Scammers will ask for these unusual payment methods because they are difficult to trace and recover.
Scammers ask for a payment or deposit of first and last month’s rent before you sign the lease or see the property. In some cities, this could easily be $4,000. But they vanish after they get your money. These scams exploit the competitive nature of rental markets, where potential tenants feel pressure to secure a property quickly.
While common, subleasing from the original tenant can be the shakiest thing you can get yourself into. Checking whether the tenant has the right to sublease the rental to you is hard. And you can never be sure you’re not becoming part of a rental scam.
Rental scammers use classified websites such as Craigslist and Kijiji, posing as a “middleman” authorized to rent a place to you. They will meet you at the address (which is usually accurate) but will tell you they can’t access it.
The scammers find the rental on another real estate platform, take the pictures and description, and place the info into an online ad. The middleman then collects a rental payment, security deposit, and other payments that can be part of a rental agreement and disappear with your money.
Always view the property in person, or send a trusted person, before making any commitments. This step lets you check if the property exists. It also allows you to meet the landlord or property manager. If the landlord makes excuses to prevent an in-person viewing, it should raise red flags.
Virtual tours can be a useful first step. However, they should not replace a visit in person. Scammers can easily fake or change online content. They may show a rental that looks amazing online, but when you show up, they show you an inferior rental at the same price.
Verbal or handshake agreements are another tool rental scammers use. So, always sign a hard copy of the rental agreement (or lease). A hard copy is preferable, but e-leases are becoming common. The agreement should include names and addresses for the landlord.
A lease agreement outlines the rental terms, price, and conditions. Beware of vague language or missing clauses. A lease protects the landlord and the tenant and ensures both sides understand their rights and duties.
If possible, ensure the landlord is present when you both sign the lease and get a copy. The lease should include the landlord’s name, address, and telephone number.
A licensed real estate agent can help you find a rental, making your search easier and safer. Real estate agents have access to legitimate landlords, can help you find the rental you want, and reduce the risk of getting scammed.
International students are prime targets for rental scams. When searching for housing, contact the school’s off-campus housing office. They can recommend and connect you with trusted landlords and property managers. If you’re searching for student accommodation, find out the key things to consider.
If something about the rental process feels off or too good to be true, take a step back. Trust your instincts. The urgency to secure housing should not overshadow your judgment. It’s better to take the time to vet a listing than to be a victim of a costly rental scam.
If you have been a rental scam victim, you can report it to the Canadian Anti-Fraud Centre, the RCMP, or local police.
Report fraudulent listings directly to the platform. They take user safety seriously and will take action against fraudulent listings.
WRITTEN BY
Steve Tustin
Senior Editor, Prepare for Canada
Steve Tustin is the Editor for Rentals for Newcomers and a contributing editor for Prepare for Canada. He is also the former managing editor of Storeys.com and a former senior editor at the Globe and Mail and the Toronto Star.
© Prepare for Canada 2025
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