An Ottawa driver paid $3,900 cash for a parking spot that was never his — how to spot a fake rental before paying

For any Canadian renting something informally — a parking spot, a storage locker, a driveway, a spare room — this case is a reminder that a signed agreement and a cash payment aren’t proof a rental is real. Here’s what to check before you pay, and what to do if you already have.

A signed contract isn’t proof of a legitimate rental

In at least one case, the man showed the spot in person and had the renter sign paperwork before accepting payment. But the property management company that actually controls the building says he had no authority to rent or sublet any of its spaces.

This is the assumption that trips up most victims of informal rental fraud: if someone can show you the property, hand over a key or fob, or produce a signed agreement, the deal must be real. None of that proves the person collecting your money actually controls the space.

Why parking and storage rentals are easy targets

Apartment rentals are governed by provincial landlord-tenant law, and tenants can appeal to a tribunal if something goes wrong. Informal rentals — parking spots, storage lockers, driveways — usually have no such oversight. There’s often no lease registered anywhere, and no board to complain to if the deal turns out to be fake.

That gap is exactly what fraudsters rely on. Canadians reported more than $704 million in fraud losses in 2025, per findings from the Canadian Anti-Fraud Centre (CAFC). Rental-type scams typically cost victims the equivalent of one to two months’ payment upfront, sometimes reaching several thousand dollars per person, according to National Bank.

What to check before you pay for an informal rental

• Ask for the building or property manager’s name and contact them directly to confirm the seller has authority to rent the space
• Search the property address along with the word ‘management’ to find the real contact information, rather than relying on a number the seller gives you
• Pay by e-transfer or credit card instead of cash so there’s a record, and in some cases, a chance to dispute the charge
• Get the manager’s confirmation in writing before handing over any money
• Be wary if the price is below market rate or if the seller pressures you to pay quickly

What to do if you’ve already paid a scammer

Contact your bank or credit card provider right away to ask about reversing the payment or flagging the transaction. Report the incident to your local police, and file a report with the Canadian Anti-Fraud Centre, even if you don’t expect to recover the money. Reports help investigators connect cases like the one that occurred in Ottawa, where a pattern across more than 20 complaints led police to link them to a single suspect.

A parking spot on a busy downtown street can feel like a low-stakes rental compared to signing a lease. That’s exactly why it’s an easy way to lose thousands of dollars. Before paying for any space you don’t own, treat it the way you would treat a full rental: confirm who actually controls the property, keep a paper trail and pay in a way that you can trace and potentially reverse.