For many, the Canada Day long weekend marks the beginning of summer, with families eager to spend time at cottages. However, the experience can be costly or only needed for a short period, leading many to rent. If you’re looking to rent a cottage, particularly through classified websites, be cautious of potential scams.
Homa Ashrafpour of Richmond Hill experienced this firsthand. In March, she found what seemed to be an ideal cottage rental on Facebook Marketplace. It was spacious enough for her family and guests, a group of about 13 people, and was significantly cheaper than similar listings on VRBO and other sites.
Ashrafpour contacted the advertiser and agreed to rent the cottage for a week in July, sending a $1,000 deposit. However, after transferring the money, the seller ceased all communication.
Later, Ashrafpour discovered the cottage listed in another ad. When she contacted the real owner, she learned she wasn’t the first victim. Scammers had stolen the owner’s identity and used his property details to create fraudulent listings.
“The owner told me that somebody took his identity and made a fake ad with his cottage information and rented it out to get money,” Ashrafpour explained.
The Canadian Anti-Fraud Centre (CAFC) warns that cottage rental scams are prevalent on social media and classified websites. “This is the time of the year to watch out for cottage rental scams. They are everywhere,” said Jeff Horncastle from CAFC.
Horncastle reported that victims have lost $308,000 to rental scams so far this year, with losses totaling $831,875 in 2023 and $737,102 in 2022.
To avoid falling victim to such scams, potential renters are advised to:
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- Be wary of unusually low prices.
- Only deal with the owner of the cottage or a reputable rental service.
- Try to view the property in person if possible.
Horncastle highlighted the difficulty in spotting fraudulent ads: “Scammers will find an old ad or a recently sold cottage, take the photos and information, and craft a fake rental ad.”
Ashrafpour’s summer vacation plans are now ruined, and she vows never to trust classified websites for rentals again. “It felt bad not just about the money, but because you got scammed by people who are just sitting in their houses and taking people’s money,” she said.
For added protection, consider using a credit card for deposits, which can offer more security in case of issues. Due to high demand, it’s also advisable to start searching for summer cottage rentals as early as December.