Unfortunately, scammers exist in every industry, including commercial real estate. As a professional commercial property management in Calgary, we want to shed light on this topic to help business owners avoid one of the worst nightmares – a rental property scam.
New business owners and those who desperately need a place right away are more likely to fall for rental fraud. Be wary of a signing process that seems a little too quick or a listing that seems too good to be true. To protect your business from scams, here are five telltale signs you’re dealing with a fake real estate agent.
One of the biggest signs of a fake real estate agent is a person who claims to be out of town and can’t meet you. This is especially tricky in today’s digital world when we rely on virtual meetings to be safe. A landlord or a representative of their property management company will always want to meet you to ensure that you’re a legitimate, responsible tenant. Additionally, if the agent pretends to work for the military or is away on a missionary trip, turn your back. Chances are, you’re dealing with a fraud.
Of course, part of the process of renting a commercial property in Calgary is to present your financial information. However, no real estate agent, property management company, or landlord will ask for your financial information right from the start even before talking about the property. Never make a security deposit before signing a lease or seeing the property in person.
Another glaring sign is if the person asks for a wire money transfer overseas, claiming that it’s part of the application process. If you experience this, report the listing as fraudulent and block all communication.
If you meet the real estate agent in person, but they cannot show you the property, they don’t actually have access to that property. They have likely faked an online listing to make it seem like the place is readily available but will find an excuse not to show you inside the property – even if you’re circling the premises. Their excuse might be that the landlord is away or you cannot enter for safety reasons. Bottom line: if you cannot see the space at all, it’s almost certainly a rental fraud.
It feels amazing when you see an incredible commercial space for lease in Calgary at an equally incredible price. However, anything that is priced below the market rate is a big red flag. A listing that is too good to be true can be a ‘bait and switch’ – a tactic that scammers use to lure in potential renters to act fast and sign a lease quickly before it’s gone. Be sure to shop around and compare the average price of similar listings in the area.
The screening process always requires a rental application and credit check to move
the process forward securely. Additionally, properties that are available immediately without the usual tenant process are a red flag. Even if it’s not a scam, be wary of an inexperienced and disorganized landlord. You may end up with an unfavourable lease term, unexpected legal issues, and other challenging problems that can disrupt your business.
Now that you’re aware of some of the most common tactics that real estate scammers use, here are some tips to ensure you’re entering a legitimate contract:
The city of Calgary is a hub for innovation. Its oil and gas sector has made Alberta a leading force in Canada’s economic growth. In addition to its picturesque surroundings, Calgary is a desirable city with attractive business growth opportunities. Diverse commercial locations make it a choice destination for local and multinational organizations seeking to […]
Our team at CMS Real Estate would like to wish you a festive holiday season and a happy new year! We appreciate your support and loyalty this past year and we look forward to continuing to serve you in 2022! As a Calgary-operated business, one of our great joys is being able to serve Calgarian […]
According to Costar’s 2021 Year-End review for office spaces, “Overall vacancy rates are expected to decline, while rental rate growth, after a three-year run of declines, is expected to reverse course and begin to start registering growth. […] Moving forward, the City of Calgary has identified a 10-year, $1 billion plan for the downtown core, […]
Are you interested in investing in commercial real estate in Calgary? Curious about the benefits and advantages this type of venture can yield? Investing in a commercial property is a good idea as it can provide great investment returns. These properties are bought by people who have surplus capital and have the intention of renting […]
A commercial real estate broker is a representative of either the property owner or someone looking to buy or lease a property, their job is to facilitate a successful transaction for the party that they are representing. One of the most important roles of a real estate associate is to fulfill their fiduciary duties, which […]
Commercial and Industrial Real Estate in Calgary is one of the most stable forms of real estate. The market has been growing steadily for decades, and while things have slowed down due to the pandemic, the promise looms large going into 2022. For this reason, commercial real estate experts in Calgary are optimistic about the […]
© Copyright 2022 CMS Real Estate Ltd.