Canada’s high rental prices and lack of housing supply are leading to an increase in reports of suspicious rental listings this summer, according to a new report.
Vancouver-based rental platform liv.rent says it has seen a 50% increase in reports of suspicious rental listings between April and July 2023, indicating that summer may be a tougher time for renters to find secure listings.
The company adds the most popular listings on its platforms can receive over 250 inquiries during the summer months.
With students looking for student housing for fall, and between 410,000 to 505,000 permanent residents immigrating to Canada by the end of the year — coupled with a shortage of rental supply in major Canadian markets — liv.rent says the risk of rental scams and the complexity of these scams is on the rise.
Liv.rent adds that the more elaborate scams are resulting in a $64 increase in the average dollar loss per victim, with each victim losing $1,499.61 on average.
The majority of scams involve fake profiles and listings. Due to the high demand for rental housing, liv.rent notes that the urgency to secure housing in today’s competitive market has made it even more difficult to spot the scams.
“Blurry listing photos, obscured address details, and urgent demands for personal information or upfront cash deposits are all tell-tale signs but are easily missed when renters are in a rush to sign a lease,” states the report.
Liv.rent says the main way to combat rental scams is to have stricter measures in place to prevent them on rental platforms. This includes confirming landlords’ identities and having them submit ownership documents to verify their listings before posting.
However, liv.rent adds that more action is needed to protect renters, especially with the influx of new Canadians entering the country, as they may not understand what rental protections and rights they are entitled to.
On its platform, liv.rent has verified landlords and listings — a move it describes as “a step in the right direction.”
According to the platform’s data, the majority of renters (62%) looking for rentals chose to click on listings marked as “verified” despite the average price of these listings being nearly 22% higher than those marked as “unverified.”
Source/ Daily Hive
