Rental scams rampant in Toronto's tight market

Prospective renters with their sights set on living in Toronto might want to meet the landlord or view the unit before paying any rent, as two people are speaking out about how they were scammed out of a place to live.

It took Jenna Mercer, of Georgetown, Ont., more than a year to find an apartment that seemed perfect for her and her cats.

"I wanted it so bad, and I was telling my parents we have to trust it," said Jenna Mercer of Georgetown.

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Mercer found the basement apartment listing on Rentals.ca, a website connecting landlords with prospective tenants looking for a place to rent.

According to Mercer, the man who placed the ad said he had to leave Canada to attend a Christian missionary in the U.S. and was in search of someone who could take care of his home while he was away.

"He was telling me he was sending his house keys through the mail and that's a big thing to do so I trusted him," said Mercer.

Even though Mercer prepaid $780, the keys never arrived.

"I was just so excited to move out, and I guess I was just too trusting," said Mercer.

Dawid Grad just moved from Ireland to Toronto and thought he had secured an apartment to rent, which he found on Rentals.ca. But, when he showed up at the address, someone else was living there, and he was scammed out of $3,600.

"It's really annoying because I have to look for something else. I thought I had something, but I didn't," said Grad. "I 100 per cent knew it was a scam when I went there and found out it was a fake ad."

Both ads were placed on Rentals.ca, but the company says it's doing what it can to limit fraud.

"If you do contact a landlord and they request that you send money right away, that's a red flag. You want to at least meet the landlord or tour the property," Rentals.ca spokesperson Giacomo Ladas told CTV News Toronto.

The rental platform now uses a verification program for landlords. When a landlord agrees to be pre-screened to ensure their legitimacy, they will have a verified blue checkmark next to their listing.

"We want to make sure that the verified program is not just something landlords are using but renters as well," said Ladas.

A recent Rentals.ca report found that the average price of a one-bedroom apartment in Toronto is now roughly $2,500 per month.

Geordie Dent, executive director of the Federation of Metro Tenants Association, urges renters to beware of fraud no matter what website they use to find a place to live.

"When you have a tight rental market, people are going to be desperate, and when they are desperate, they are going to be prone to scams," said Dent.