Data from SingleKey shows that around 15 per cent of tenant applications contain falsified documents, a climbing figure as renters struggle with affordability and job insecurity. For Realtors, it’s a business risk that can leave clients and agents facing unpaid rent, legal costs, and property damage that can total tens of thousands of dollars.

Why are rental scams on the rise

Fraudulent documents from fake credit reports, to proof of income, and even fake driver’s licences are common rental scams in Canada, and have become an increasing problem in recent years.

The typical signs of a fraudulent document include:

• Formatting errors from irregular font use to spacing and alignment inconsistencies
• Account summaries not matching account overviews
• Whole numbers after taxes 
• Employer contact info that doesn’t trace to a real company

But now, with AI, these scams are going unnoticed. What used to be a crude Photoshop job has become a sophisticated, fast-moving scam that is easier than ever to execute. Free online templates and AI tools make it easy to generate convincing pay stubs, employment letters and bank statements in seconds. Logos look authentic. Tax deductions appear accurate. Even bank deposits can be simulated with AI tools.

It’s become increasingly difficult for Realtors to spot these fakes with the naked eye, especially when dealing with time-sensitive leases or multiple applications.

An example of a fake paystub. Clues to detect its inauthenticity include fuzzy fonts and an outdated company name for the employer.

The cost of scams for Realtors

Realtors understand the cost of rental scams goes far beyond lost income. It’s months of legal headaches, unpaid rent and the uphill battle of removing a problematic tenant. Once a risky tenant is in, recovering the unit (and the funds) becomes a long, time-consuming and uncertain process.

Beyond income loss, rental scams can be damaging to a Realtor’s reputation. Realtors are market experts, and investors put their trust in Realtors’ judgment when it comes to rental screening. Persistent scams, the toll on mental health, and the headache of the ordeal can cost a Realtor the investor’s trust, and ultimately, their reputation. Realtors need tools that even the playing field and use AI to their advantage. 

AI didn’t create rental scams — it exposed the gap 

AI hasn’t created a new rental scam problem; it’s just exposed an existing one more clearly.

Rental scams persist because Canada’s rental market lacks the standardization and safeguards that protect other major investments. You wouldn’t buy a car or home without insurance; renting should come with its own layer of protection. 

That’s where trust infrastructure comes in. A set of tools and processes that build accountability, increase transparency, and reduce risk for landlords and Realtors alike. And now, it includes AI. 

While AI has made it easier to create fake documents, it’s also being used to detect them, flagging mismatched fonts, suspicious file metadata, irregular pay cycles and other red flags that even experienced agents might miss.

How to put trust infrastructure into practice

AI may have exposed the gaps in rental screening, but it can also help close them. To stay ahead of increasingly sophisticated scams, Realtors must evolve their screening processes, adopt safeguards and leverage AI to build what the industry needs most: trust infrastructure.

This means combining smart tools with consistent, repeatable practices that reduce risk for clients and put trust back into the landlord-tenant relationship.

A few of these practices include: 

• Complete background checks with verified digital channels – Whenever possible, request income verification on platforms connected to Equifax and TransUnion to create a full picture of the potential tenant. 
• AI-powered documentation and income verification – Use AI as the first line of defence, tracking easy-to-hide edits such as mismatched fonts, layout inconsistency and covered information before it reaches you. 
• Pre-screen risk scoring – Leverage AI to support with the initial assessment of tenant documents, from credit scores, pay stubs and existing debts, to empower decision makers to move quicker and weed out high-risk applicants.
• Regular audits of screening outcomes – Technology paired with Realtors’ market expertise creates efficient and knowledgeable systems. Realtors should take the time to review current systems for bias or false positives, to continuously find ways to leverage AI in a way that works best for them.

The bottom line

Fraudulent applications aren’t going away. They’re part of a broader affordability crunch reshaping the rental market and unveiling the cracks in the current process.

Sharp eyes are no longer enough; the rental market needs systems that create accountability and transparency. At SingleKey, we’ve seen these systems in action firsthand: tenants know their information will be verified, and landlords know their income is protected.

When Realtors combine digital verification tools with automated rent collection and rent guarantee, they are not just screening tenants; they are also protecting income and increasing confidence across the board.

Viler Lika

Viler Lika is the founder and CEO of SingleKey, a leading rental risk intelligence platform that helps landlords, property managers, and Realtors verify tenants and protect rental income. Viler holds an MBA and a computer engineering degree, and he has a background in lending and consumer credit risk at Capital One and TD Bank. Viler is now focused on bringing a fairer, data-driven, transparent and more accountable leasing experience to landlords and Realtors to make renting stress-free.

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But I’ve also seen how a small number of irresponsible operators have caused big problems. And now, municipalities are scrambling to regulate the entire sector.

Cottage rentals are an economic lifeline

Short-term rentals are more than a sweet escape from the city. For many families, renting out their cottage is the only way to cover rising costs of ownership, from property taxes to maintenance and insurance. And without that income, some owners would be forced to sell. 

Beyond that, rentals have massive economic benefits to rural communities. Guests spend money at local grocery stores, restaurants, marinas, hardware stores, and attractions. They hire fishing guides, rent boats, and pay local cleaners and landscapers. One week-long rental can generate thousands of dollars in local spending, and when you multiply that over a full season, the value to rural tourism economies is undeniable. 

Pressure on owners 

In response to community complaints, many municipalities have implemented licensing systems, and I support that in principle. But in practice, we’re seeing a troubling trend: excessive fees. 

This heavy-handed approach is pushing responsible owners out of the market entirely. Many are taking their listings down, or selling altogether, not because they’re unwilling to comply, but because the system is too difficult or costly to navigate.

This outcome helps no one. Families lose a place they call home or an important source of income that makes ownership viable. Local businesses lose tourism dollars, and municipalities risk driving rentals underground. We need to foster accountability, but with smart licensing regulations.  

Responsible renting starts with the owner

Let’s be clear: licensing is a two-way street. As owners, we have a duty to operate respectfully and professionally. Complaints happen when owners take a hands-off approach, leaving guests and neighbours without proper support or expectations.

At Jayne’s, we set clear house rules around noise, occupancy, garbage, and parking. We vet guests carefully. We have boots-on-the-ground property managers and a 24/7 guest support team. Our goal is simple: to create seamless, memorable guest experiences while preserving the peace and character of the community. 

What smart licensing looks like

The challenge for municipalities is to create a licensing system that sets clear expectations without overburdening the owners who are willing to, and already do, play by the rules. 

That balance comes down to a couple of things: 

Simple application process – While the municipality needs to ensure safety and compliance to septic standards, etc, there should be no need for intrusive cottage inspections for owners who rent through a registered TICO agency or have self-rented responsibly for the last 5 years with no bylaw infractions. These owners should not have to report expiry dates on smoke alarms, etc.

Fair licensing fees – Costs that reflect the actual expense of setting up the program and providing enforcement, not ones that drive owners away.

Reasonable enforcement – Owners should be given the benefit of the doubt, as these regulations are new and many cottages are second homes. Owners may not be fully informed about the procedures required under the new rules. A grace period should be provided while owners familiarize themselves with the short-term rental regulations, and fines should not be imposed immediately. Enforcing penalties right away risks frustrating owners who are likely unaware of the rules and could discourage them from participating in the rental market.

When licensing is grounded in accountability, rather than punishment, it protects the community while keeping rentals operating responsibly. 

The majority of owners and operators are not the problem. Yet when we respond with high fees and blanket restrictions, they punish those who are following the rules and do little to those who are not. 

How to move forward

Cottage rentals are about more than revenue—they’re about tradition, connection, and memories. We’ve hosted everything from multigenerational reunions and milestone birthdays to restorative wellness retreats. It’s not just a stay—it’s a meaningful escape. And responsible rental companies work hard to preserve that serenity for both guests and neighbours alike.

Ontario doesn’t need fewer rentals. It needs better standards. Let’s focus our efforts on the handful of properties that are causing disruption, not on blanket restrictions that hurt the families, businesses, and communities that rely on responsible tourism.

Jayne McCaw

Jayne McCaw is a former marketing and sales executive who transitioned her passion for travel and business into entrepreneurial success. Compelled to shift away from corporate culture mid-life, Jayne took inspiration from her love of cottage living and enjoyment of curating unforgettable family vacations to found Jayne’s Cottages – a full-service luxury cottage rental and five-star concierge company with an exceptionally personalized and exclusive owner-focused approach to planning and hosting a safe and seamless Muskoka stay. Starting with just a few cottages in 2014 her business has seen rapid growth that’s had an immense impact on the region’s luxury rental market.

She consistently surpasses cottage owners’ expectations for financial gains and her curated high-touch concierge and stay experiences have a repeat guest rate of over 50 per cent. All affirming Jayne’s discerning tastes, impeccable customer service, and attention to detail.  Jayne’s company now hand-selects and manages almost 200 of the finest properties, primarily in Muskoka, ON. She is deeply dedicated to supporting economic growth and charitable initiatives in her local community by employing over 60 staff and contributing to family-centered Simcoe-Muskoka Family Connections.  She has four children, whom have all worked at the company during university summers.

Born and raised on the shores of Lake Huron, Jayne currently splits her time between the calming beauty of Lake Rosseau and the urban bustle of midtown Toronto.

The post OPINION: How to fix Ontario’s heavy-handed short-term rental rules appeared first on REM.

“The Competition Bureau is aware that some landlords and property managers may be engaging with their competitors, including through discussion groups on social media,” said the independent regulator in a recent press release.

The statement says that while some discussions between competitors may be justified, others may be illegal. 

“Landlords and property managers must understand the difference between conversations that are harmless and conversations that they should steer clear from.”

What isn’t allowed

Agreements between landlords to “make the most of the booming rental housing market” or “find ways to ensure that all players benefit from the strong demand equally” raise concerns under the law and could be illegal, says the Competition Bureau.

According to the notice, it is illegal for competitors to agree about:

• Rental prices, including any increases or surcharges.
• The terms of their leases, including amenities and services.
• Restricting the housing supply by artificially reducing the availability of rental units.

“Engaging in illegal agreements with competitors, such as price-fixing, market allocation, restricting supply, or wage-fixing and no-poaching agreements, is a criminal offence under the Competition Act, with potential prison sentences of up to 14 years and hefty fines at the discretion of the court.”

Best practices

The Competition Bureau says andlords and property managers are to:

• Decide on their own prices, price increases, surcharges and the terms of leases.
• Explain and negotiate the terms of leases with their tenants only.

The post Rental price collusion is illegal, Competition Bureau warns appeared first on REM.

A new study by Point2Homes reveals a sweeping transformation in how Canadians define renting, as more people turn to single-family rentals, rather than apartments, for space and stability.

Renting no longer temporary

Between 2016 and 2021, the latest Census period, Canada added nearly 500,000 new renter households, driving the national renter share past 33 per cent, the highest in the country’s history. The trend points to a structural shift: homes once built for owners are now forming the foundation of Canada’s rental stock.

Single-family rental households grew by 14.7 per cent, outpacing the 9.4 per cent growth seen in traditional, multi-unit apartment rentals, a clear signal that many Canadians are seeking out homes with more space and amenities. 

According to Statistics Canada, more than 40 per cent of the homes built between 2016 and 2021 were occupied by renters at the time of the last Census, the highest tenant rate since the 1960s.

This is especially evident in Montréal, where renters occupy 55 per cent of homes built in that five-year span.

City-dwellers want space too

The popularity of single-family rentals isn’t limited to the suburbs. Canada’s largest cities are leading the charge toward house rentals, according to the report.

Ottawa, Calgary, and Toronto each added more than 8,800 single-family rental households between 2016 and 2021, as residents looked for the comfort and privacy of a detached home without the unattainable price tag of ownership.

Ontario at the epicenter

The house-renting boom is most intense in Ontario, home to eight of the ten fastest-growing cities for single-family rental households. 

Markham tops the list, posting a nearly 70 per cent increase in single-family rentals, followed closely by Richmond Hill, Oakville, and Newmarket.

Solo renters driving demand

Single Canadians are a driving force behind the evolution. One-person single-family rental households have surged by 19.6 per cent, nearly double the growth seen in solo apartment renters. 

This suggests that individuals are increasingly prioritizing space and privacy, even when living alone.

Redefining “home” in Canada

As ownership becomes less attainable for millions, renting is becoming the preferred path for those seeking stability and comfort, according to the report. In this changing landscape, single-family rentals aren’t just filling a housing gap, they’re perhaps shaping the future of how Canadians live.

The post Canadians embrace single-family rentals as homeownership remains unreachable for many appeared first on REM.

When existing problems or potential issues are identified during a property inspection, they can often be remedied by the seller, or the buyer can be compensated with a lower purchase price to make up for future spending.

Since cottages are often secondary property purchases for your clients, they’re more likely to feel anxious about adding monthly payments to their budget, so a home inspection is a great way to put their worries to rest.

Seasonal properties or those not occupied full time can pose issues that go unnoticed over time, until a major problem arises that’s visible to the naked eye. A home inspection allows the inspector to look beyond the obvious to uncover hidden issues. 

The following are scenarios of recent inspections that revealed issues that could have remained hidden, if not for an inspector taking a deeper dive.

Soft spot uncovered in cottage floor

A family in the market for a lakeside retreat they could enjoy together found the perfect cottage perched on a hill above the lake, giving it excellent views, with a beautiful dock for the kids to use while swimming and fishing.

During the inspection, our inspector found a soft spot in the cottage flooring. Upon further investigation, it was determined that the window had been leaking for a while and rot had reached through to the sub-flooring. Thanks to the inspection, the buyers were able to negotiate a price reduction with the sellers to cover the repairs, avoiding a surprise renovation their first summer. 

Inadequate attic ventilation discovered in rental property

A first-time investor was looking to purchase an Airbnb-style rental property. They found a trendy-looking cabin that was under five years old in an ideal rental market.

During the home inspection, our inspector found that there was inadequate ventilation in the attic, with early signs of mould growth becoming visible due to trapped moisture. If gone undetected, this serious issue could have not only impacted the health of guests, but it could have snowballed into a much larger problem.

The buyer was able to use the inspection report to get the seller to handle remediation and add  extra ventilation before closing. 

Property maintenance inspections examine these key components:

• Foundation and drains
• Gutters and drain spouts
• Heating and cooling systems
• Plumbing systems
• Electrical systems
• Roofing
• Windows and doors
• Fireplaces and chimneys
• Presence of smoke detectors and other safety equipment

Following a thorough property inspection, your clients will be provided with three complete action lists:

1. Required items – deserve immediate attention.
2. Deferred items – need to be addressed in the near future.
3. Future Maintenance items – noteworthy points that aren’t urgent, but should be monitored during future assessments.

Ongoing protection

Having a professional home inspector keep track of your clients’ properties on an annual basis will also offer added peace of mind that their investments are being well monitored and maintained. 

A lot can happen to a property’s exterior over a year, particularly when it comes to extreme winter weather conditions such as wind, freezing rain, ice and snow. 

Equally as important is ensuring the mechanical systems within each property are running as intended.

It’s also more difficult to keep an eye on properties and identify issues when they’re not owner-occupied or at least have full-time tenants.

Regardless of the type of property your clients are seeking, a professional home inspection is money well spent – with the average inspection fee sitting around $550 for a 2,000-square-foot house, including infrared/thermal imaging.

While each fee is property-specific based on such aspects as size, age and location, the issues found in the properties listed above cost exponentially more to repair than the nominal home inspection fees charged.

Cliff Campbell

Cliff Campbell is a regional owner and member of the National Leadership Team at A Buyer’s Choice Home Inspections (ABCHI) Canada, as well as a Certified Master Inspector (CMI) and the local owner of the Lethbridge, AB ABCHI franchise. Having performed 6,000+ residential and commercial property inspections, Cliff has a passion for raising the bar in what buyers, sellers and their realtors should expect from a professional inspector. He can be reached at: https://abuyerschoice.com/partners

abuyerschoice.com/partners

The post A smart start: The importance of property inspections for rentals and vacation homes appeared first on REM.

A new report from Re/Max Canada, The Nation of Renters, highlights factors currently shaping the country’s housing landscape. First-time homebuyers are struggling to enter the market, while renters face affordability and supply constraints of their own.

Christopher Alexander, president of Re/Max Canada, describes affordability as “by far, the greatest barrier to homeownership from coast to coast.” He notes that “with the average price of a home in most Canadian markets more than doubling between 2006 and 2021, first-time buyers are falling through the cracks.”

Alexander adds, “ It’s near impossible for some buyers, even with steady, well-paying jobs. The dream of home ownership is eroding further and faster than their ability to save.” 

Affordability and policy barriers

Home prices have swelled over the past two decades, making it increasingly difficult to save for a down payment, particularly in Canada’s largest cities. The Office of the Superintendent of Financial Institutions’ (OSFI) mortgage stress test, which requires borrowers to qualify at rates two percentage points higher than the posted rate, remains a significant hurdle for many. Alexander argues that “the OSFI stress test has outlived its usefulness and is unnecessarily inhibiting capable, entry-level purchasers.”

Beyond mortgage qualification challenges, development charges have reached record highs in cities like Toronto. The Canada Home Builders’ Association Municipal Benchmarking Study found that development costs per low-rise unit in Toronto rose to $189,325 in 2022—an increase of 21 per cent over 2020 levels. Hamilton, with the second-highest municipal charge per unit of $61,431, was up a substantial 49 per cent over 2020 levels, followed by Vancouver at $61,414, which increased 29 per cent. Ottawa rose 11 per cent to $46,320, while Calgary jumped 15 per cent during the same period, climbing to $42,800. Halifax had much lower municipal charges per unit, at $9,629, but that was still up 41 per cent from 2020, when it was $6,823. 

Housing supply and the “missing middle”

Re/Max identifies a longstanding supply shortage as a major contributor to rising home prices. According to Toronto Metropolitan University’s Social Housing Supply Mix Strategy 4A Report, the country built 45,000 federally assisted affordable units in 1971, yet it took almost 25 years to build the same number of units between 1995 and 2019.

High land costs, zoning restrictions and lengthy approval processes have slowed new construction. Many of the units coming to market are smaller condominiums aimed at investors rather than family-sized housing.

“The decline in first-time buyers has thrown a wrench into the city’s fine-tuned housing market, which relies on entry-level buyers to support the move-up segment,” the report states.

The buy vs. rent debate

Many Canadians who would traditionally buy a home are remaining in the rental market. According to Ratehub.ca, the cost of carrying a $600,000 home in the Greater Toronto Area—with a 10 per cent down payment and a five-year fixed rate of 4.1 per cent—is approximately $2,665 per month, comparable to the cost of renting a one-bedroom apartment in the city.

While rental prices are beginning to soften in some areas, they remain high. The rent report from Urbanation and Rentals.ca Urbanation found that Vancouver is currently Canada’s most expensive rental market, with one-bedroom units averaging $2,512 per month, followed by Toronto at $2,360 and Halifax at $2,030.

Market outlook and economic uncertainty

Economic uncertainty is also shaping the market. A recent U.S. tariff announcement has raised concerns about a potential recession, particularly in Ontario and Quebec. Although a 30-day reprieve was negotiated, economists suggest that a prolonged trade dispute could impact employment and overall housing demand.

At the same time, Canada’s population growth continues to outpace new housing supply. According to Statistics Canada’s Annual Demographic Estimates, the country’s population increased by 17.4 per cent between 2006 and 2021, adding over 5.6 million residents. Between 2021 and 2024, further double-digit growth was recorded in cities such as Vancouver (+12.2 per cent), Calgary (+15.5 per cent), and Toronto (+9.8 per cent). “If you factor in the accelerated growth that occurred between 2021 and 2024… the strain on the Canadian housing market is palpable, and the pressure is not expected to ease,” Alexander said.“Each percentage point contraction in the national homeownership rate represents thousands of Canadians locked out of the housing market.” 

The report suggests that potential solutions could include relaxed lending policies, longer amortization periods, and incentives for first-time buyers.

The post ‘The dream of homeownership is eroding’: Why more Canadians are stuck renting appeared first on REM.

Danny Kucharsky

Danny Kucharsky is a contributing writer for REM.

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