Recently the Toronto police broke up a ring of moving companies that were allegedly extorting their clients into paying outrageous fees on moving day.

Police say that consumers would reply to an online ad on Craiglist or Kijiji for two movers and a truck, at a flat rate of $40 an hour with no minimum fee. But when the movers arrived, they allegedly demanded a $500 deposit. Once the client's belongings were in the truck, police allege the movers asked for more money for carrying items up stairs ($25 per stair), long walks and other charges. If the client wouldn't pay, the movers would threaten to sue them or dump the belongings onto the street. Police allege one man's goods were tossed out of the truck after he wouldn't pay all that was demanded.

Police have made seven arrests and seized 12 trucks, two cars, two other luxury vehicles and more than $11,000 in cash. The movers were operating under at least 10 different company names. Many of the victims were elderly or newcomers to Canada with limited English language skills. Moving is big business in Canada, because Canadians love to move. A TD Canada Trust report says one-in-five repeat home buyers have owned more than five homes. Twenty-three per cent of those surveyed plan to move again within six years, and less than one-third say their next move will be their last.

The report says the main reason for moving is retirement (29 per cent). Other factors include being bored of their current home (16 per cent), investment opportunities (15 per cent) and market conditions (15 per cent). Fourteen per cent of those surveyed say they had always planned to move but were waiting to save enough money.

With all that moving, there are always going to be people looking for bargains when choosing a moving company – but to avoid becoming a victim on moving day, there are some common sense precautions to follow.

As with any major purchase, it pays to shop around. Check the record of the moving company with the local Better Business Bureau, and ask friends and family for recommendations. Ask your prospective mover for references and phone them to see how they felt about the move.

Hiring a mover over the phone is asking for trouble. Reputable moving companies will want to come and see what is to be moved so they can provide an accurate quote and identify any concerns.

Packing is separate from moving – if you want the company to pack your stuff, there will be another charge. However, if you pack your own, some companies will not offer liability insurance on those items. Find out if your household insurance covers damage that could occur during a move. You may want to purchase extra insurance to ensure coverage. Make sure the moving company is also insured.

If your goods are to be stored, go and check out the storage facilities. Don't hire a company that won't let you view its storage facilities.

Ask the moving company if the contents will be on the same truck for the entire move, or if it will be transferred to another one, thus increasing the chances of damage. Ask if the company subcontracts its moving services, and find out as much as you can about those subcontractors.

The moving contract should include the estimate – in Ontario, the final price cannot be more than 10 per cent above the estimate in the agreement. It should also include the size and value of the items to be moved; an estimate of the number of boxes to be moved; number of people and vehicles that will be used; insurance details including the name of the person who holds the policy; and any documents that may be required (such as at border crossings).

On the day of the move, there are several things you can do to help things go more smoothly. Make sure everything is packed and ready to go on time – everyone seems to have a horror story about helping a friend move when they didn't have everything packed properly. Make sure boxes are clearly marked so you know what's in them. Take valuables such as jewelry, important documents and very fragile items yourself. Make sure you have made arrangements for your pets on moving day.

At both ends of the move, plan ahead so there is a parking spot for the moving van. Supervise the move to make sure items are being moved carefully and placed where you want them.

Before the movers leave, make sure any missing or damaged items are noted on the contract.

Published: October 12, 2010

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Jim Adair is editor of REM: Canada's Real Estate Magazine, a business publication for real estate agents and brokers. He has been writing about Canadian real estate, home building and renovation issues for more than 30 years. You can contact Jim at .