Craigslist luxury rental scam leaves Vancouver tenants on the sidewalk

[Klazu]

Vancouver rental market sure has all kinds of features...

Craigslist luxury rental scam leaves Vancouver tenants on the sidewalk

A new twist on an old rental scam has popped up in Vancouver, leaving some would-be tenants out of pocket for tens of thousands of dollars.

In what police are calling a sophisticated con, luxury rentals are posted on Craigslist, then interested applicants are offered a discount — worth hundreds of dollars — on the monthly rate to tenants willing to pay a full six months' rent up front.

Kaveh Khalilzadeh thought he was securing a great deal for his parents when he went to view a two-bedroom luxury condo in Vancouver's Shaw Tower.
Kaveh Khalilzadeh

With views of the water, the condo seemed perfect to Khalilzadeh's parents, who viewed the property twice before signing a lease and agreeing to pay six months' rent — $26,000.

The rental company, operating under the name Pacific Luxury Realty, seemed legitimate to the family — Khalilzadeh's parents' references were even checked — and so they went ahead and deposited the full amount into the company's Bank of Montreal account.

"The day before the moving day, we figured out there [was] something wrong," Khalilzadeh told CBC News.

The family could not gain access to the apartment and Pacific Luxury Realty — along with its website — could not be found.

Khalilzadeh said the building concierge told him he was not alone and that the scammers had rented the unit to several people. One would-be renter video-recorded the condo with his phone, capturing this blurry image of the man showing the condo.

The unit had actually been for sale — for $3 million — and police say the crooks stole the photos from the actual realtor's website and turned them into a rental ad. It appears they then passed themselves off as the selling agents to gain access to the building.

"We're looking at over $100,000 in relation to one unit," said Sgt. Randy Fincham of the Vancouver police. "This is one scam, one unit, in the city of Vancouver and we do expect it's a lot larger problem than just one unit."

One couple from out of town got a shock when they showed up with their moving truck.

"They knocked on the door [and found out] it was never for rent in the first place, and it was already occupied," Fincher said.

Other luxury highrises in the city have been the site of the same scam he said, including the Fairmont Pacific Rim.
vancouver rental scam

Investigating the bank account the Khalilzadeh's paid their money into, police found that it was fraudulent and the person whose name was attached to it did not exist.

Vancouver police are asking anyone with information to come forward. CBC News contacted the property managers at Shaw Tower, but received no response to questions.

Meanwhile, Khalilzadeh, who has lost all trust in landlords, is trying to find a home for his parents.

"They're just regular people using their retirement money," he said. "It was a horrible experience, especially for my parents, because they just moved to Canada less than a year ago.

http://www.cbc.ca/news/canada/britis...walk-1.2896233

[nds88]

Sounds like an inside job. How can someone gain access to the unit so easily? If it was for sale, there was likely a lock box outside the door. That person would need the combination to get the front door key.

Also, a FOB should be needed to get elevator access from the lobby to their floor. I guess the concierge could have buzzed them in and gave them access to the floor if they had a believable story they were selling agents. But that would draw suspicion after multiple viewings and forgetting the fob multiple times.

Sounds like the owner, listing realtor, buying realtor, or current occupant is getting a piece of the pie.

[jsbertram]

So, instead of paying $4,333 per month rent, how much house could you buy for that as a monthly mortgage?

[Pinion]

"Regular retired people" do not spend $26,000 for six months of apartment rental, wtf

[rsxstock]

what a useless concierge

[Pinion]

Concierges require legit people to actually inform them of things in order to deny scammers. Most of the time they're not given enough info to risk their job denying people.

[djh]

Originally Posted by jsbertram

So, instead of paying $4,333 per month rent, how much house could you buy for that as a monthly mortgage?

Not everybody wants or needs to buy.

[sacrifice333]

Originally Posted by jsbertram

So, instead of paying $4,333 per month rent, how much house could you buy for that as a monthly mortgage?

With today's interest rates roughly $500/month equates to $100K of mortgage. Therefore, $4333/month could service a mortgage of approx. $866K. If you were shooting the moon with your finances you could purchase a home of approx. $1.15M, putting $284K down, and paying $4333/month.

This of course does not take into account your taxes, maintenance, increased potential for loss or gain, etc.

/off topic

[djh]

Originally Posted by sacrifice333

With today's interest rates roughly $500/month equates to $100K of mortgage. Therefore, $4333/month could service a mortgage of approx. $866K. If you were shooting the moon with your finances you could purchase a home of approx. $1.15M, putting $284K down, and paying $4333/month.

This of course does not take into account your taxes, maintenance, increased potential for loss or gain, etc.

/off topic

Like I said:
Not everybody wants or needs to buy.

The end goal for everybody is not to own a giant house with a picket fence.
Many people are on long-term contracts, on company-paid accommodation allowances, consultants away from their main base, or even seniors, diplomats/politicians, celebs and others who don't want to maintain a property, and many many other permulations.

Your end goal may want to buy a house. Not everybody thinks that way.

[sacrifice333]

^for sure.

My last comment(s) were an education, not endorsement. 2 sides to every coin.

[Klazu]

There's a follow-up to the scam.

Vancouver real estate agents warn about impersonators

The Real Estate Council of B.C. wants agents to use caution before handing over the keys to properties being viewed, after half a dozen condos were used to steal hundreds of thousands of dollars from potential renters.

A CBC investigation into the elaborate scheme has led several victims to come forward, including one B.C. woman who says she recognizes the suspect captured in video from a citizen's arrest as the same person who allegedly duped her as part of an elaborate Craigslist rental scam.

"I think it's the same man, the same stature, same magpie hat, straight teeth," said Sandy Irving.

Irving said she saw the Coal Harbour apartment several times and that the fake landlord impersonated a real estate agent. She also said he used photos from a legitimate listing for the sale of the condo. When she realized she has been duped, Irving filed a complaint against the condo's actual listing agents with the Real Estate Council.

Larry Buttress, deputy executive officer for the Real Estate Council of B.C., is concerned that real estate agents might be tricked into letting fraudsters show their properties.

"They need to be aware that these kinds of fraud are taking place" and should call the police if they believe their condo listings are being used in a scam, he said.

Typically, real estate agents attend showings for properties they have listed in person. They're also required to make sure that any other real estate agent who is showing their property is properly licensed before they leave the keys with them or a doorman.

However, Irving said the council found no evidence of wrongdoing on the part of the two agents who had set up the listing for sale.

Irving said she felt sick watching the video recorded by Linda Tran and her roommates. When the roommates figured out they'd lost more than $8,000 for what they thought was the perfect Yaletown condo, they requested one more viewing of their fake rental and held the man until the police arrived.

"I just find it despicable. I lost $6,000 and I too was without a home and traumatized," said Irving, who now has a new home in Sechelt, B.C.

The president of the Vancouver Real Estate Board also said he does not know how criminals are gaining access to vacant properties that are for sale.

"We don't like it when people of that ilk represent us," said Ray Harris. "We really try and do as much as we can to have security. We all have cards that say we're Realtors. It should have our pictures."

But he acknowledges forgeries and fake IDs can be hard to spot.

Police investigation continues

While the suspect in the video was not charged and was released pending a police investigation, the man had several IDs with aliases in his wallet.

Irving said she called the Vancouver police to tell investigators she believes it is the same man who pretended to own the Coal Harbour condo she thought she had rented in June.

While Tran knows him as Edward Young, a sales executive with Pacific Luxury Rentals, Irving said the man she interacted with called himself Charlie and was "too polished and he wanted cash."

Meanwhile, the Vancouver police say the investigation of this luxury condo rental scam case is complex and time consuming.

"You're dealing with individuals that are using fake names, fake identities, the paper trails are endless and they often lead to additional crimes," said Const. Brian Montague.

http://www.cbc.ca/news/canada/britis...tors-1.2930402

[Klazu]

Video of the citizen arrest of the scammer: http://www.cbc.ca/player/News/Canada/BC/ID/2649507330/