Rental scam hits St. John's, alleges local property management company

A St. John's property management firm is warning about an alleged rental scam, after prospective renters told the company that a man had posed as a landlord for one of its apartments and collected thousands of dollars from them.

Lindsey Kelly, the general manager of Krown Property Management, says a woman approached her earlier this week.

She says the woman told her that she had viewed an apartment the company manages about a month ago with a man who said he was the landlord.

"[He] had collected a damage deposit and first month's rent from her, gave her receipts and everything. And [he] messaged her [on Tuesday] morning saying the property was no longer available," Kelly recounted.

"When she couldn't get in touch with him again to try to get the refund of the funds she had paid, she went to the property itself and came across our painting crew, who then informed her that the property was managed by Krown Property Management."

That's when the woman went to the company's offices to try to get things straightened out.

"We … put the puzzle pieces together and determined that she had been shown the property by the previous tenant's son-in-law," Kelly said.

"So when the previous tenant put her notice in to vacate, during that time — before we did the move-out inspection and changed the locks [in early August] — he was [allegedly] showing the property … pretending to be the landlord, and collecting money."

Similar stories from others

The woman told Kelly that when she arrived for that viewing, she saw other people leaving the apartment — from what looked like another viewing.

So Kelly took to social media to warn others about the possible scam, noting that the man had been signing documents under a different name.

That's when she says she heard from four other people who told her similar stories.

"He met all of them at the property, showed [it to] them, gave them receipts — even signed a lease with one of the individuals. He had one person fill out a rental application," she said, noting that the potential renters had paid the man with cash or through an email money transfer.

"They all got the same story from him [on Tuesday]: that 'the property is no longer available,' and then dropped off the face of the planet."

Kelly says she filed a statement with police on Wednesday.

The Royal Newfoundland Constabulary told CBC News it is looking into whether a complaint has been made about an alleged rental scam. 

'Really upset'

Kelly says the people she spoke with are feeling upset, overwhelmed and frustrated.

"All of these people have given their notice at their other apartment, were expecting to move into this unit for Sept. 1, and we already have [that apartment] rented ourselves," she said.

"And now they have nowhere to go and they're out $1,000 or more that they [say they've] paid to this guy."

She says these renters also now have to come up with another full month's rent and damage deposit.

The company is currently trying to help them to find new places to live.

Advice for renters

Kelly says, in her seven years working with Krown Property Management, this is the first time she's ever come across a story like this. 

She's speaking out to help raise awareness for potential renters.

I wouldn't pay your first month's rent until you move in.- Lindsey Kelly

"You really have to be careful who you're renting from.… You have to be careful who you can trust," she said.

Kelly says while it's common for landlords to ask for a damage deposit up front, that's the only money you should be offering up to secure the property.

"I wouldn't pay your first month's rent until you move in," she said. "Don't give people all that money before you have the keys in your hand."

Kelly says if you're not using a property management company, you can also ask your potential landlord for references from previous tenants.

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