Beware of home improvement scams, BBB warns after pandemic-related uptick

BBB warns homeowners about contractor scams Spring has arrived, and with that comes a growing number of people wanting to tackle home renovations.

Vancouver — The Better Business Bureau of mainland British Columbia is warning the public about a recent surge in home improvement scams in the province.

The scams typically involve contractors who use "high-pressure sales tactics" and demand up-front payment, the BBB said in a news release.

In an interview with CTV News Vancouver, Karla Laird, the local bureau's manager for community and public relations, said British Columbians reported more than $120,000 in losses related to home improvement scams in 2020.

"People are losing thousands of dollars because they're falling into, well, shady situations with fly-by-night contractors, fly-by-night businesses that tricked them into paying up-front fees for jobs that were poorly done or jobs that were never even initiated," Laird said.

She said the $120,000 is likely a significant underestimate because losses from scams tend to be underreported.

Home contractor scams are some of the most effective, from the scammer's perspective. The BBB estimates that such scams have a roughly 74 per cent "susceptibility rate," and that the median loss for victims is $1,000.

Laird said the COVID-19 pandemic likely played a role in the increase in reports of home improvement scams last year.

"With people staying at home, looking at the four walls of their homes or their apartments, there were many people trying to make their place more attractive," she said.

For people looking to make renovations or repairs to their homes in the coming months, Laird recommends a few simple steps to avoid being scammed.

Researching contractors before hiring them, including asking for and checking with references, will go a long way toward ensuring a homeowner's peace of mind, she said.

"Details are crucial when you're doing any kind of home improvement work," Laird added. "So if someone is trying to do a job without a contract, if someone is trying to get you to pay up-front, fully, for the job, without even starting it, that's also a red flag."

Checking the BBB website for information about a contractor before hiring them can also be helpful, and Laird said the bureau wants to hear from anyone who has encountered a home improvement scam.

"If you've stumbled into someone who is not so trustworthy, who's shady, or who has proven to be unreliable, let us know, because it's important that other consumers are aware of this as well," she said.