How I Almost Fell for a Rental Fraud—and How You Can Avoid It Too! Listen to my story!
Being a real estate agent for over 18 years, I’ve heard plenty of stories about rental fraud, but I never had to deal with it firsthand—until recently.
What started as a routine inquiry about one of my rental listings in Vaughan, Ontario, quickly escalated into a deep dive into fraudulent documents, suspicious behavior, and a real estate agent who was either completely oblivious or deliberately covering for a scammer.
If you’re a landlord or a fellow realtor, this is a story you need to hear. It could save you from renting to the wrong tenants—and the costly nightmare that follows.
🚨 The First Red Flag: The Suspicious Phone Call
At The Ragona Sisters Team, we have a well-structured process to pre-screen potential tenants before allowing them to move forward with an application. For this particular listing, we required:
✅ Employment letters for all leaseholders
✅ Three recent, consecutive pay stubs
✅ A credit bureau report not older than 30 days
These are non-negotiable requirements that help ensure only financially stable and responsible tenants are approved.
🚩 Then came the first red flag. 🚩
I received a phone call from a man asking about the rental. As always, I asked if he had the required documents. Instead of a simple “yes” or “no,” he suddenly hung up. 🚩
Minutes later, I received a text message:
“My wife will email you the documents today.”
🚩 That was the second red flag. 🚩
Most serious renters already have their paperwork ready or, at the very least, are willing to have a conversation about it. The fact that he was reluctant to discuss the details on the phone and then delayed sending the documents told me something was off.
But I decided to wait and see.
📧 The Delayed Email & Fraudulent Documents
Three days later, I finally received an email from his wife with the required documents attached.
As soon as I opened them, my suspicions skyrocketed.
🆔 The Driver’s License Discrepancy
The couple’s driver’s licenses showed a Vaughan address. However, the man’s pay stubs had a Toronto address with the exact same street number and postal code as his Vaughan residence. That’s impossible! 🚩
📑 The Credit Bureau Report Didn’t Match
The credit bureau report showed no record of employment for the man.
If he had been working at the same company for over a year, as his pay stubs indicated, why wasn’t it reflected in his credit history? That made no sense.
💰 The Pay Stubs Didn’t Add Up
This is where the fraud really stood out.
1️⃣ Odd File Naming: The submitted pay stubs were labeled “Payroll Advice N1, N2, and N3.” That’s not how most companies name their payroll files. Most legitimate payroll systems generate consistent naming formats (e.g., “Pay Stub – September 15, 2024”).
2️⃣ Missing Pay Periods: I requested three consecutive pay stubs, but the ones I received were one from each month—even though the man was paid biweekly. That means at least three stubs were missing. 🚩
3️⃣ Huge Net Pay Drop: This was the biggest giveaway.
Between September and October, his net pay decreased by $10,000! 😲
The listed deductions (taxes, benefits, etc.) didn’t explain such a drastic drop. In my 18 years of real estate, I’ve never seen a legitimate payroll document with such wild fluctuations.
At this point, I knew something was wrong.
🤔 The Shocking Twist: A Realtor Tries to Cover for Them
A few days later, I had a scheduled showing with another realtor who had interested clients. After the showing, he submitted their application for my listing.
When I opened the email, I was stunned.
It was the same couple!
I immediately called the agent and asked:
“Did you review their documents?”
“Yes.”
“Did you check the pay stubs?”
“Yes.”
“Okay, can you explain why their driver’s license address doesn’t match their employment letter and pay stubs?”
Silence.
“Can you explain why his net pay suddenly dropped by $10,000?”
More silence.
“Why does his credit bureau not reflect any employment history when he claims to have been at this job for over a year?”
His response? “They’re such nice people! I’m sure it’s just a misunderstanding.”
🚩🚩🚩
Nice people? That’s exactly what every scam victim says before they realize they’ve been deceived.
The agent reassured me that he’d “get back to me with answers.” He never did.
🏚️ The Nightmare That Almost Happened
If I had blindly trusted the agent and not verified the documents myself, these tenants would have moved in—and the real nightmare would have begun.
🔹 The Risk of Squatters
Many fraudulent tenants use fake documents to secure rentals, then stop paying rent.
They exploit Ontario’s Tenant and Landlord Board (LTB) loopholes to delay eviction for months—sometimes over a year—while living in the property for free.
🔹 Ontario’s Landlord-Tenant Loopholes
Evictions in Ontario can take months, and if a tenant stops paying rent, the financial burden falls entirely on the landlord.
If a scammer moves in, you could be losing thousands of dollars in unpaid rent, legal fees, and potential property damages.
🚀 The Key Takeaways: How to Protect Yourself from Rental Fraud
1️⃣ Always verify documents thoroughly.
Do not take anything at face value—even if another realtor is involved.
2️⃣ Look for inconsistencies.
Check for:
🔹 Mismatched addresses
🔹 Pay stub formatting errors
🔹 Suspicious income fluctuations
3️⃣ Compare pay stubs and credit reports.
If a tenant claims to have a stable job, it should be reflected in their credit report.
4️⃣ Be cautious if documents are delayed.
Legitimate tenants already have paperwork ready or can provide it quickly.
5️⃣ Don’t ignore red flags just because someone is ‘nice.’
Fraudsters count on trust to bypass proper screening.
📢 Landlords & Realtors: Stay Vigilant!
Rental fraud is on the rise, and scammers are getting more sophisticated.
If you’re a landlord, screen tenants properly or work with an agent who does.
If you’re a realtor, remember that your responsibility is to your client.
Never submit documents without personally verifying their authenticity.
Had I ignored my instincts, this story could have ended very differently.
🔹 Stay alert
🔹 Ask the right questions
🔹 Protect yourself from rental scams!
Have you ever encountered rental fraud? Drop your experience in the comments! 👇