As competition heats up for rental housing in metro St. John, would-be renters like Ronnie Gosse are facing online rental scams. (Lucas Wall/CBC)
Ronnie Gosse, a demolition construction supervisor living in St. John’s, has been looking for an apartment since last Christmas. At the time of the search, he was staying at his mother’s house in the city center.
So Gosse was quite surprised when he spotted an online ad for this same house for rent.
“She doesn’t have an apartment to rent. There is only a two-bedroom house,” Gosse said. “And I know she doesn’t rent to anyone.”
Gosse decided to contact the person who posted the ad.
“I was pushing him a little bit just to see what he was going to say,” Gose said. “And then immediately asked me for a deposit on the spot. He said, ‘I can save it for you today,'” Gose said.
At that point, Gosse revealed that he knew the rental ad showed his mother’s house. In response, Gosse said, the man immediately blocked him on Facebook.
Gosse said he called the RNC about the ad. An official said Gosse’s case will be added to an ongoing investigation into rental ads, according to Gosse.
Given the current demand for rental housing in the metro area, Gosse fears more people could be vulnerable to this type of scheme.
“It’s scary because, you know, people who are trustworthy will put down a deposit without even seeing or inspecting the apartment or the house,” Gosse said.
“They could lose their money and then have to start all over again.”
Bidding wars, rising rents and more
Gosse is looking for an apartment to call his own. And as a demolition supervisor, he has more money than some struggling to find housing; Gosse said he is willing to pay up to $1,700 a month for a two-bedroom apartment.
Still, Gosse doesn’t find many rental options in the metro area. And in many cases, he said, he thinks landlords are asking too much of prospective tenants.
“I know one place is looking for a credit check, and I mean, that’s great,” Gosse said.
Ronnie Gosse has been house hunting in the St. John metro area since last December. (Submitted by Ronnie Gosse)
“But then they asked me for my social security number. You and I both know that the only ones who should have your Social Security number are the government or your employer for tax purposes,” Gosse said.
Another potential landlord said he would stop by for monthly inspections without giving advance notice, according to Gosse. This contravenes the Residential Tenancies Act, which requires landlords to give tenants at least 24 hours notice in writing before entering rental properties.
Then there are what Gosse calls apartment “bidding wars.” He said that in some cases, landlords do not set rental prices in advance. Instead, Gosse said, landlords ask prospective tenants what they would choose to pay.
“I think that’s what’s driving some of the rent increases,” Gosse said, mentioning that he’s seen a “pretty run down” basement apartment going for $2,000 a month plus utilities.
Scams, rising rents associated with limited housing supply
Sherwin Flight has been running the Newfoundland Tenant and Landlord Support Group on Facebook for almost a decade. He said the housing situation has become much more difficult in the past year – and said the lack of housing supply is his No. 1 concern.
“No. 2 would probably be affordability,” Flight added. “Affordability has always been an issue for some people. But unfortunately, when the supply of rental housing decreases, the price of what is available tends to rise.”
Sherwin Flight is the administrator of a Facebook group dedicated to renters and landlords. (Ted Dillon/CBC)
Flight said the shrinking supply of rental housing is also likely to fuel an increase in fraud.
“We see a lot of questions in our group where people say, ‘I saw this ad online and they want me to send a deposit,'” Flight said.
“It’s always a big red flag if someone asks for money before you’ve even seen the place.”
Flight also warned of a rise in rental ads featuring photos and descriptions from real estate listings. “If it sounds too good to be true, it probably is,” Flight said.
Flight would like to see tougher penalties for landlords and tenants who break rules in the province’s Residential Tenancies Act. He would also like to see more non-profit and social housing. But ultimately, he suggests that this problem may have a fairly simple solution.
“To improve the housing situation, I think we just need more housing,” Flight said. “I really think it’s a supply issue.”
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