Short-term rental scam in downtown Vancouver happening on another well-known booking platform

Short term rental scams are still occurring on a major travel website, despite the new provincial law preventing unregulated listings.

When Colbin Wong saw a CTV News investigation into a short-term rental scam involving fake tenants signing long-term leases on downtown Vancouver condos only to turn around and list them on Airbnb, he knew he needed to come forward.

“We are really glad you got this out there on Airbnb. We also want to share that it’s being done on Booking.com,” said Wong, whose partner fell victim to the scam.

Wong says his partner found a man named John who she thought was a great long-term tenant in May, and he signed a one-year lease on her furnished two-bedroom downtown condo.

“Good references, good credit check,” said Wong. “There were no red flags about this particular individual. He seemed to be a very mild-mannered, very responsible individual.”

But then his partner got a letter from her strata saying she was being fined for running an illegal short-term rental.

That’s when the couple learned the tenant never moved in. Instead, John listed the condo for $500 a night on Booking.com.

“We actually ran into a couple of the Booking.com guests,” said Wong. “They were just as shocked as we were that the listing was an illegal listing.”

Related: Vancouver councillors want answers from Airbnb after CTV News reports on illegal listings by long-term tenants

He says he was given a link to the listing by a guest, and reached out to Booking.com asking that it be removed – but the platform didn’t reply. When a guest complained, the listing was taken down, but a new one popped up days later with the photos slightly altered.

“So we issued two eviction notices, one for non-payment of utilities and one for illegal short-term rentals. And the tenant didn’t dispute either of them, because they were posted on the door and the tenant was not in the unit,” said Wong.

He believes the tenant is part of an organized criminal enterprise.

“They kept sending tourists to the apartment even after they were given the eviction notice. And after we told them to stop,” Wong said.

On June 2, the B.C. government enacted a new law that was supposed to prevent illegal short-term rentals. It stipulates that a listing must have a valid, paid registration and that number must be posted. But in all the listings CTV News has investigated, the host claimed the listing was exempt from the law, which is not possible for downtown Vancouver condos.

“They leave it up to the host, and the host can say whatever they want,” said Wong.

Booking.com did not respond to a request for comment from CTV News by deadline. This story will be updated if a response is received.

A request to interview B.C.’s minister of housing and municipal affairs was also denied.

The ministry provided some information on background, saying there is a legal process to follow for hosts who are not compliant with the regulations. Failures include:

• Purporting to be a registrant when the person is not a registrant;
• Contravention of the principal residence requirement; and
• Failure to comply by giving false or misleading information.

Monetary penalties may range from $500 to $10,000 per day depending on the rule broken, and the ministry encourages members of the public to report rental hosts or platforms that are not following the provincial rules.

Wong said without strong enforcement of the new registration law, there is a big incentive for the scammers to keep it up.

“If you’re making what the listing said, which was about $500 a night, and a tenant is paying about $125 for long term rental, you’re making $375 a day per apartment that you have,” said Wong.

He also believes there is an incentive for short-term rental platforms to look the other way.

“They’re making a percentage of that $375 per night,” Wong said. “Until someone forces them to, I don’t think anything will be done.”

Eventually Wong’s partner was able to successfully evict the tenant, and she is hoping her strata will waive the $9,000 worth of fines she incurred while the unit was being used as an illegal short-term rental.

“It’s been an extremely stressful situation,” said Wong.

His partner has since signed a lease with a new long-term tenant. The couple’s advice for landlords looking to find a legitimate tenant? Ask lots of questions, get more than one reference, and let them know you will be checking in on the unit.

“As a landlord, you’re allowed to visit the unit once a month for maintenance and inspection,” Wong said, adding you have to give at least 24 hours’ notice.

Those regular visits should deter most short-term rental scammers, but Wong added it’s a delicate balance. ‘You don’t want to discourage a tenant and be that nosy landlord. You have to allow the tenant their right to quiet enjoyment.”

Wong hopes this time, the man they chose to lease the condo actually lives there.