Canadian Student Housing Guide: Basement Rentals, Tenant Rights by Province, and How to Avoid Deposit Scams

International students in Canada lose deposits to rental fraud every week, with Toronto Police Service recording 381 rental scam reports in 2024 alone. The risk is highest for newcomers searching housing remotely before arrival, paying via e-transfer, and renting basement units that often sit outside building code compliance. This guide covers the laws that protect you, the scam patterns to recognise, and the official channels to use when something goes wrong.

How Big the Problem Is in 2024-2025

The Canadian Anti-Fraud Centre 2024 Annual Statistical Report recorded 108,878 fraud reports and over $638 million in reported losses. The CAFC estimates this represents only 5 to 10 percent of actual fraud losses, since most victims never report.

Rental scams hit students hardest in Toronto, Vancouver, Brampton, and Kitchener-Waterloo. CTV News reported a coordinated scam targeting international students in Kitchener in September 2024, with multiple victims losing thousands of dollars in deposits.

A 2024 CBC investigation found Brampton officials asking for federal and provincial intervention after a surge in landlord exploitation.

Earlier reporting from CBC News in February 2024 found that Khalsa Aid Canada saw calls for housing help jump from five a week in 2023 to five a day by early 2024.

What a Legal Deposit Looks Like in Each Province

Deposit rules differ sharply across provinces. A landlord quoting "first and last and damage deposit" in Ontario or Quebec is breaking the law.

Ontario

The Government of Ontario tenant rights page confirms landlords are allowed to collect a rent deposit equal to one month's rent, used only as the last month's rent. Landlords cannot collect a damage deposit, key deposit above the replacement cost, or any application fee. The 2026 rent increase guideline is 2.1 percent for units covered by the Residential Tenancies Act.

British Columbia

The BC government deposits page sets the maximum security deposit at half of the first month's rent, plus an additional half-month for pet damage. Landlords must pay interest on deposits at the prescribed rate (2.7 percent for 2024, 0.95 percent for 2025, 0 percent for 2026). Late returns trigger doubled deposit recovery through the Residential Tenancy Branch.

Quebec

Quebec's Tribunal administratif du logement prohibits all security, damage, key, and pet deposits. Only first month's rent is allowed at lease signing. Any landlord demanding more is violating the Civil Code of Quebec.

Basement Apartments: Legal vs Illegal

Basement units make up a large share of student rentals in Toronto, Mississauga, and Brampton. Most are not code-compliant.

Industry estimates suggest roughly 80 percent of Toronto basement apartments do not meet legal requirements, with only 21 percent of GTA listings in 2020 advertised as legal units. Renting illegal units exposes you to fire risk, sudden eviction, and no recourse if the city orders the unit closed.

A legal basement apartment in Ontario must meet Ontario Fire Code Section 9.8 standards. Check these features before signing:

• A separate entrance from the main dwelling
• Egress windows large enough to climb through in an emergency
• Minimum 1.95 metre ceiling height across the main living area
• Hard-wired interconnected smoke alarms in the unit and shared spaces
• Carbon monoxide detectors near sleeping areas
• 30-minute to 45-minute fire separation between the basement and upper unit
• Properly enclosed furnace room
• A registered address with the municipality

Landlords renting non-compliant units face fines up to 0,000 for individuals and 0,000 for corporations under Ontario law, as of July 2026. You as the tenant face displacement with little notice if the city issues an order. Related: how to spot rental housing scams and on-campus vs off-campus housing.

When the Residential Tenancies Act Does Not Apply

Ontario's RTA carves out an exception that catches many basement renters off guard. If you share a kitchen or bathroom with the owner or an immediate family member of the owner, the RTA does not protect you. The LTB interpretation guidelines explain this carve-out in detail.

Confirm before signing whether you are a tenant under the RTA or an excluded occupant with weaker rights. Related: working in Canada while studying and is studying in Canada still worth it.

The Most Common Scam Patterns

The University of Toronto Community Safety Office lists six recurring patterns. Each one shows up in police reports targeting international students.

• Phantom rentals advertise units that do not exist, using stolen photos
• Hijacked ads copy real listings with the scammer's contact info swapped in
• Already-rented units collect deposits for properties leased to someone else
• Missing amenities inflate the price by advertising features the unit lacks
• Bait-and-switch pressures you to sign for a different unit on arrival
• Suspicious money requests demand wire transfers, gift cards, or crypto before any viewing

Red flags that signal a scam:

• Rent priced well below market for the area
• A "landlord" who claims to be overseas and refuses video calls
• Pressure to send an e-transfer within hours to "hold" the unit
• Request for application fees, damage deposits, or key deposits in Ontario or Quebec
• No standard lease offered, or refusal to provide one
• Listings copied across multiple Facebook Marketplace, Kijiji, and Craigslist posts

A Verified Student Case

The Eyeopener documented Asmith Kaur, a third-year Toronto Metropolitan University sociology student, who lost $5,200 with her roommate to a Facebook Marketplace scam. The scammer posed as a student living abroad subletting an apartment and pressured both victims into wiring rent and a deposit before any in-person viewing.

Kaur later learned five other people had been scammed by the same person. She told The Eyeopener: "I saved up a lot of money which all went into the scam. I worked so hard and now it's all gone." Browse all universities in Canada.

Step-By-Step Prevention Checklist

Before You Arrive in Canada

• Search listings only on verified platforms: your university's off-campus housing portal, Places4Students, liv.rent , Rentals.ca, or PadMapper
• Reverse-image search every photo in the listing to detect stolen images
• Cross-check the address on Google Street View and municipal property records
• Refuse any payment request before a confirmed in-person or trusted-friend viewing
• Ask your university's international student office whether the address is flagged
• Confirm the deposit ask matches your province's legal maximum

On Arrival

• View the unit in daylight and check for working smoke and CO alarms
• Photograph every wall, appliance, and fixture before moving in
• Request a written inspection report at move-in, mandatory in BC under the Residential Tenancy Act
• Demand the Ontario Standard Lease (Form 2229E) within 21 days of paying rent, or withhold one month's rent until provided
• Verify the landlord's name matches the property title via municipal records
• Pay only by traceable methods: e-transfer to a verified bank account, cheque, or bank draft

Throughout the Tenancy

• Keep every receipt, text, and email in a dedicated folder
• Document all repair requests in writing, even if your landlord prefers calls
• Note your right to 24 hours written notice before any landlord entry in Ontario
• Learn the eviction process so you recognise an illegal "lockout" attempt
• Monitor rent increases against the official provincial guideline

What To Do If You Get Scammed or Mistreated

Act within 24 hours. Faster reporting raises the chance of stopping the e-transfer or tracing the account.

1. Contact your bank immediately to attempt a reversal on the e-transfer
2. File a report with the Canadian Anti-Fraud Centre at 1-888-495-8501
3. File a police report with your local service (Toronto Police 416-808-2222, Peel 905-453-3311, Vancouver 604-717-3321)
4. Notify your university's community safety or international student office
5. Save every screenshot, email, and bank record as evidence
6. For deposit disputes after move-in, file with the LTB, RTB, or TAL in your province
7. Contact Legal Aid Ontario at 1-800-668-8258 if you need free legal help

Provincial Tribunal Contacts

Tools and Apps Worth Using

• Canadian Anti-Fraud Centre Scam Tracker for live scam alerts
• Equifax Canada free credit report monitoring after any data exposure
• Reverse image search through Google Images or TinEye to test listing photos
• Municipal property lookup tools, such as the City of Toronto MyToronto lookup for address verification
• Provincial standard lease forms downloaded directly from government sites, not third-party PDFs

Embassy and University Support Channels

International students should register with their embassy or consulate in Canada on arrival. Many embassies maintain emergency contact lines for citizens facing fraud, eviction, or unsafe housing. Most universities operate dedicated international student advisors and off-campus housing offices. See our full guide to surviving the Canadian housing crisis.

• University of Toronto Housing Services: [email protected]
• UBC International House: 604-822-5021
• McGill International Student Services: 514-398-4349
• York University Student Community and Leadership Development: 416-736-5144
• Brampton 311 for illegal rooming house complaints
• Toronto 311 for property standards issues

Sources

• Canadian Anti-Fraud Centre 2024 Annual Statistical Report
• Government of Ontario: Renting in Ontario, your rights
• Landlord and Tenant Board of Ontario
• LTB Interpretation Guideline 21: Landlords, Tenants, Occupants and Residential Tenancies
• Province of British Columbia: Tenancy Deposits and Fees
• Tribunal administratif du logement, Quebec: Deposit of Rent
• University of Toronto Community Safety Office: Rental and Landlord Scams
• UofT Student Life: Housing scams and how to spot them
• The Eyeopener: Students struggle to find housing as rental scams increase
• CTV News Kitchener: International students lose thousands to alleged rental scam (September 2024)
• CBC News: Brampton officials call on feds, Ontario to help curb trafficking of international students (October 2024)
• CBC News: Brampton residents rally against exploitative landlords (September 2024)
• CBC News: International students are in 'crisis.' Governments need to take responsibility: Peel charities (February 2024)