Everyday, people turn to the internet to plan their vacations. In the vacation rental industry, most of the business comes to us via online advertising. It is not as though we get drive-by traffic by having a billboard or flashing “No Vacancy” sign. So how do you protect yourself from being scammed online?
Please note: While some of these points are applicable to any area, some are specific to the Canadian Rockies. The moral of the story is take some time to get familiar with the laws, customs, and price points of the place you are visiting.
Red Flag #1 ANONYMOUS EMAIL ADDRESS: Does the owner/manager communicate with you through a free email address from Hotmail, Gmail, or Yahoo instead of an info@<insert company name>.com ? A domain-based email address costs about $20/year and is more professional. The owner of a domain can also be searched online by doing a “whois” search. Be leery of an owner who will only communicate via anonymous e-mails, and don’t hesitate to pick up the phone to ask the owner/property manager detailed questions or even request more photos.
Red Flag #2 PAYMENT ADDRESS: Where is the payment being sent to? Is it a PO Box? Some companies use a PO Box for simplicity’s sake, but so do scam artists. Is there some other way to verify the address that you are sending your hard-earned vacation dollars to?
Red Flag #3 PAYMENT OPTIONS: Do you shop at any store that tells you they only have one payment option? Be leary of sending personal checks, money orders, wire transfers or PayPal payments when that is the only option available. A successful company will have several different options available — you choose which one works for you. It can be costly and time-consuming for a scam artist to set up multiple accounts and options — they generally choose one and stick with it.
In Canada, the safest bet is likely paying by credit card. Merchants are required to go through a lengthy verification process in order to be granted a Merchant Account. Also, your credit card company may offer some level of protection if you have been scammed. Please note: you should still be verifying who you are giving your credit card number to by using some or all of the other methods listed here.
Red Flag #4 LOW PRICE: Be familiar with the going rates in the area, and be cautious if a price seems too good to be true (it probably is). If you find a great price, ask the owner why the price is lower than other available properties. There might be a very good reason. Maybe they’ve reduced the price to fill specific dates. Maybe they clean the property themselves and have less overhead costs. Maybe the property is new and they need to entice some guests to try it out.
Red Flag #5 GUEST REVIEWS: Most vacation rental advertising portals have a Guest Review section. If a property is so great, why are there no reviews? That being said, be careful of relying solely on reviews. They are easy to fake. It is unlikely that 100% of guests are happy 100% of the time, and guests often have suggestions as to how to improve a property. Be wary of pages of positive reviews without one single negative or constructive comment.
Red Flag #6 UNLIMITED AVAILABILITY: Try asking what other dates are available in that month. While many owner/managers maintain availability calendars, some choose not to for various reasons. An empty calendar may mean there are multiple properties available; a scam artist will be ready to accept your reservation deposit no matter what dates you request.
Red Flag #7 LIMITED ONLINE PRESENCE: Is the property only listed on a free website? Is it only listed on one of the many vacation rental websites? Professional owners want to advertise in as many places as possible, but that can be too costly for a scam artist who is just looking to make a quick buck.
Red Flag #8 INSULTED BY, or UNABLE TO ANSWER, QUESTIONS: The simple way to avoid being scammed is to ask questions! Ask questions about the area and attractions. Most scam artists do not live in the area that they are advertising. Scam artists don’t have answers for tricky questions. Scam artists become insulted when they are asked to verify their legitimacy.
Legitimate businesses are happy to answer questions about their business. They are happy when guests/customers are interested in the company. They are excited to talk about the area and attractions.
Red Flag #9 NO WRITTEN AGREEMENT: Get it in writing — the dates of your stay, payment details, damage deposit details. It may seem inconvenient when compared to staying in a hotel (where you sign the agreement upon arrival), but you need to know what the expectations are. What is required in order to get your full Damage Deposit back?
Red Flag #10 UNABLE TO VERIFY LOCAL CONNECTIONS: Check the address at the municipality website. If no website exists for the municipality, call them on the phone and ask about the laws regarding short term rentals. They will know the local laws better than you will. Ask the owner about a local restaurant or attraction. If you are visiting Canmore, click here for some information on how to verify a property.
Any one of these red flags does not mean you are being scammed, but if 3 or 4 red flags occur you may want to consider looking for a different property.
If you have any more suggestions on how to avoid online vacation rental scams, please share them here. If you have been scammed by someone already, feel free to post that information as well. Hopefully you can save someone else from falling into the same trap.