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$950 for an apartment? A steal if it's real, but an Ontario man is now just one of the latest scam victims

$950 for an apartment? A steal if it's real, but an Ontario man is now just one of the latest scam victims

CBC
Thursday, October 26, 2023 12:39:55 PM UTC

Chris Norris is running out of time to find somewhere to live. 

He needs to be out of his rental in Thunder Bay, Ont., by the end of October, and being on long-term disability means his budget is tight. It's even tighter now, after falling prey to a scammer who took a $400 deposit from him for an apartment that wasn't real. 

"It was very defeating — you're out that money, you're not going to get that money back, there's no recourse," Norris said. 

Rental scams are becoming more common across Canada, according to anti-fraud interests, and scammers are rarely held accountable. Norris and other victims say they want that to change and see action to stop fraud against renters. 

The scam against Norris took place on Facebook, when someone responded to his ad looking for a rental. They offered a unit for $950 a month all inclusive, which is a good deal in Thunder Bay's rental market, so Norris felt he needed to do whatever it took to sign that lease.

"I got to jump the gun and make sure I'm doing everything I can to secure a place," said Norris. "I desperately need a place because my landlord is selling where I am right now."

After paying the $400 deposit, the person started asking for more money, which made Norris suspicious. When he went to the house for a viewing, he found someone living there who said the apartment was definitely not for rent. When Norris tried to contact the person offering the unit, they blocked him on Facebook, leaving him out $400. 

Non-delivery scams related to buying and selling online, including rental scams, have all increased since the start of the COVID-19 pandemic in 2020, according to the Canadian Anti-Fraud Centre. 

In 2021, frauds associated with buying or selling goods and services online accounted for $21.1 million in reported losses, the fraud centre reports. 

Housing-related scams are easy and lucrative for criminals, said Rachel Jolicoeur, director of the Cyber Market Intelligence and Financial Crimes centre at Interac. Compared to other online scams, rental fraud allows scammers to "cast a very wide net."

"They don't have to specify a certain demographic, age group. This really applies to everyone. We all need a home," said Jolicoeur. "The victim can be anyone."

Application fees, security deposits, pet deposits and asking for first month's rent before a move-in are all illegal under Ontario's Residential Tenancies Act (RTA). But many tenants don't know this or feel pressured to pay illegal fees because of how challenging finding a rental can be, said Dania Majid, a lawyer with the Advocacy Centre for Tenants Ontario.

"Because of the low supply and the fact that there are next to no affordable units, they are sort of going outside of the norms set under the Residential Tenancies Act," said Majid. "That desperation for prospective tenants trying to find a place has generally has made everyone vulnerable to potential scams." 

One of the most glaring red flags is a reluctance to physically show the unit, said Jolicoeur. 

Read full story on CBC
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