Online classifieds sites like Kijiji and Craigslist are frequently at the centre of stories about online frauds. Screen grab/WELLESLEY CONSULTING SERVICES

The Vancouver Sun reported earlier that the Better Business Bureau is warning of rising incidents of rental scams in the run up to the 2010 Olympics.

The BBB has not yet posted an alert on the issue on their Canadian website, however the Sun reports that unsuspecting property owners are encountering prospective renters knocking on their door who are answering Craigslist ads that were never in fact placed by the ‘landlords’, and were instead posted by fraudsters – sometimes complete with photos of the property purportedly being rented.

In this type of scam, the fraudster is often seeking a quick payout with a deposit on the rental property, sight unseen.  When the scam is discovered, the fraudster already has been paid some of the money and cannot be located.  MoneyGram or Western Union are usually the requested payment options.

This is an age-old rental scam, but with less than 100 days until the 2010 Olympics commence in Vancouver and Whistler, B.C., and with already high rents and low vacancies in the region, the effect is compounded.

The usual warnings apply here:

• Don’t ever rent sight unseen.  Always look at the property before agreeing to rent, or make any payments. If the landlord says they are out of the country or unavailable, they should have someone minding the property in case of an emergency who can access it to show you around. And, ask why would they go on a trip abroad in the first place when they know they are looking to rent their property?
• Don’t pay a deposit in advance, and don’t pay by Western Union or MoneyGram.  Legit landlords normally request a cashier’s cheque for the first and last months’ rent, and post-dated cheques for each month during the rental.
• Don’t rent on a handshake or phone call contract.  For added security, use a real estate agent to draft the lease agreement.  They usually take one months’ rent as a fee, from the landlord.  But they can ensure the rental agreement is drafted properly and meets the legal requirements for the jurisdiction.
• Be wary of rental ads on Craigslist and Kijiji.  They are attractive to landlords because they are low cost ways of advertising, but they are also ripe with fraud due to poor anti-fraud measures.
• If something doesn’t look right, it probably isn’t.  Take an hour out of your day and access the local Land Registry Office records to find out who the owner of the property is, and find out if they know that their property is being offered as a rental.  Land registry checks are open to the public and the records can be viewed and printed for a nominal fee.