The Financial and Consumer Affairs Authority of Saskatchewan is warning people of rental scams that have been popping up around the province.
In most rental scams, fraudsters have been posing as landlords by targeting prospective renters through fake listings.
The landlord typically doesn't own the property, with photos downloaded from advertisements on legitimate real estate sites.
The fraudster will then ask the renter to sign a fake lease agreement and send payment for the first month of rent and a securtiy deposit.
Once payment is received, the fraudster either disappears or, in some cases, a locksmith is called who grants access to the property causing problems for the fraud victim and legitimate property owner.
"Rental scammers are inventive and unscrupulous," FCAA Insurance and Real Estate Division Executive Director Jan Seibel said. "One type of online scam that we are seeing is where fake landlords lure unwary would-be renters with pictures of properties they don't actually own. It's important to watch for red flags and make sure you are dealing with a legitimate person."
The FCAA published a few tips for people to consider if they want to avoid rental scams:
- Meeting the landlord in person (being unavailable to meet in person is a significant red flag) or at least via phone call.
- Always inspecting the property first and ensuring that the address represents the actual property. Whenever possible request to tour the premises with the landlord.
- Being wary if the landlord requests money right away, without doing a background check or having a formal rental agreement in place. Security deposits and rental payments should never be paid until you have seen the rental property.
- Ensuring that the rental price is in keeping with the going rate in the area. As with many other types of scams, if something seems too good to be true it generally is.
- A legitimate landlord will be forthcoming with information about the rental process, ask questions and make sure to get clear information.
Anyone looking for more information can find that at fcaa.gov.sk.ca.