Fake Landlord Rent Scam - Advance Rental Payment Fraud

How to avoid getting scammed out of your house

By Frank O'Brien - Inman News - Toronto Canada 06/03

The Toronto couple couldn't believe their good fortune. They had found a modern two-bedroom house close to downtown available to rent for only $2,000. After showing them the house, the landlord asked for the first and last month's rent in certified checks.

"It was such a good deal we never thought twice about it," said Janet W., the potential tenant, who, with her husband, was soon packing. When they arrived two weeks later to move into their dream home, however, they awoke to a nightmare. The "landlord" had rented the house out to 12 other potential tenants, pocketing more than $25,000 in deposits before skipping town. It turned out the phony owner had actually rented the house himself just a few weeks before advertising it for rent.

Real estate schemes, scams and fraud all constitute a form of theft which criminals use to steal your cash or even your home. And Canadian police departments say they are increasing in number and sophistication.

Con artists may use several methods to swindle you in a real estate fraud scheme. Foreclosure bailout, home equity fraud, home renovation scams, rental fraud and deceptive timeshare scams are just a few types of real estate frauds now popping up.

Surrey woman loses $9,000 in Olympic rental scam

A Surrey woman was scammed out of almost $9,000 after trying to rent her home out during the 2010 Olympics by placing an online ad on Craig's List.

Surrey RCMP Sgt. Roger Morrow said the victim has asked police not to make her name public. He said she was contacted by someone claiming to be a doctor from England, who raised the ante by saying he and his family would like to rent her place for a year for $30,000.

She bit. The "doctor" then sent her a cheque for $39,000, and then contacted her to say he'd sent too much and needed $8,900 back to cover his moving costs.

The Surrey resident waited seven days and checked twice with her bank to ensure the cheque from the "doctor" was legit before wiring $8,900 back to him.

"Having taken as many precautions as possible and exercising due diligence, the fraud was cast in stone," Morrow said. "Following the monies having been wired to this individual, the bank has since withdrawn the original amount of $39,000 from the victim's account and has advised the cheque was a fraud."

This scam has also played out in Toronto, Squamish, and Delta, where the victim was bilked out of $6,000.

No one has been arrested in any of these cases.

"To ensure you do not become a victim of a similar scam, it is suggested that you have any monies agreed upon be wired to you in cash and not via cheque nor money order," Morrow advised.

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