Best practices to prevent rental fraud

Rental fraud attempts are becoming increasingly common and can take many forms. Schemes observed in Quebec target both tenants and landlords. Whether you manage or own rental properties, it's essential to understand the most common tactics to protect yourself. Here are a few ways to reduce your risk.

Rent payment fraud: Watch out for fake emails

A frequent tactic involves someone impersonating the landlord to trick tenants into sending an Interac e-transfer to a fraudulent account. The scammer uses a generic email address (e.g., a Gmail account) and claims that a new payment method is now required. Worried that they might lose their apartment, some tenants make the transfer without confirming the information with their landlord.

To limit the risks associated with this type of fraud, consider the following tips:

• Inform your tenants that no change to payment methods will be made without direct communication from you through a predetermined channel.
  

• Whenever possible, use a mobile phone number as a method to confirm Interac e-transfers.
  

• Encourage tenants to contact you immediately if they receive a suspicious message.
  

• Provide a written notice explaining best practices for avoiding fraud.
  

  
  

Identity fraud: Be vigilant when processing rental applications

Landlords can also become  victims of rental fraud when applicants present fake IDs, often a counterfeit driver’s licenses. If this verification step is skipped, the consequences can be significant: damage to the unit, inability to identify the true occupant, and limited legal recourse. Using a screening service like ProprioEnquête can help reduce fraud risks and deter dishonest applicants, but caution is still required.

Best practices include:

• Request a photo of the applicant holding their driver’s license next to their face.
  

• Set up a video call to visually confirm the applicant’s identity.
  

• Consult the SAAQ guide to learn how to spot signs of falsification.
  

• Reject any driver’s license issued before August 2015 (as illustrated in the SAAQ guide), as they are no longer in circulation and are easier to counterfeit.
  

Prevention is your best defense

The most effective way to prevent rental fraud is always prevention. By establishing clear procedures, educating your tenants, and carefully reviewing every document you receive, you reduce the risk of being targeted. Stay alert, and feel free to contact us if you have questions about the best practices to adopt. To better understand the consequences of identity fraud, we recommend this PROPRIO magazine article featuring a real case handled by the team at  L.A. Agence de Recouvrement.