How to Screen Tenants

Why Screening Matters

Choosing the right tenant is the single most important decision you make as a landlord. A thorough screening process reduces the risk of late payments, property damage, and costly eviction proceedings at the Landlord and Tenant Board (LTB). The time you invest in screening upfront can save you months of problems and thousands of dollars.

In Ontario, the eviction process through the LTB can take several months, during which you may receive no rent. Selecting a responsible tenant from the start is far more effective than dealing with problems after they arise.

What You Can Legally Ask

The Ontario Human Rights Code protects prospective tenants from discrimination based on race, ancestry, place of origin, colour, ethnic origin, citizenship, creed, sex, sexual orientation, gender identity, age, marital status, family status, disability, or receipt of public assistance. You cannot refuse to rent to someone based on any of these grounds.

What you can assess includes the applicant's ability to pay rent, their rental history, and their creditworthiness. You may ask about income and employment, request credit reports, contact previous landlords for references, and verify identity. Focus your screening on financial reliability and rental track record, not personal characteristics.

Running a Credit Check

A credit check provides a snapshot of the applicant's financial responsibility. You need the applicant's written consent to pull their credit report. Many landlords use services like Equifax or TransUnion, or third-party tenant screening platforms that bundle credit checks with other verification tools.

When reviewing a credit report, look for patterns rather than focusing on a single number. Consistent on-time payments are a positive indicator. Multiple collections, recent bankruptcies, or a history of missed payments may indicate risk. However, a lower credit score alone does not necessarily make someone a poor tenant. Consider the full picture, including their income, employment stability, and references.

Verifying Employment and Income

Confirm that the applicant has stable income sufficient to cover the rent. A common guideline is that rent should not exceed 30 to 35 percent of the tenant's gross monthly income, though this is a guideline rather than a legal requirement.

• Request recent pay stubs or a letter of employment on company letterhead
• Contact the employer directly to verify the applicant's position and income
• For self-employed applicants, request a Notice of Assessment from the CRA or recent tax returns
• For students, confirm any co-signer arrangements or proof of funding

Checking References

Previous landlord references are among the most valuable pieces of information you can gather. A current landlord may have an incentive to give a positive reference to move a problematic tenant along, so also contact the landlord before the current one when possible.

Questions to ask previous landlords include whether the tenant paid rent on time, whether they maintained the unit in good condition, whether there were any complaints from neighbours, and whether the landlord would rent to them again. Document the responses for your records.

Meeting the Applicant

A showing or meeting gives you the opportunity to assess the applicant in person and answer their questions about the unit. Pay attention to how they present themselves and the questions they ask. Serious tenants typically ask about lease terms, maintenance procedures, and neighbourhood details.

During the meeting, be consistent in the information you provide to all applicants. Treating every applicant the same way protects you from allegations of discrimination and ensures your process is fair and defensible.

Red Flags to Watch For

• Reluctance to provide references or consent to a credit check
• Inconsistent information on the application compared to documentation
• Pressure to move in immediately without completing the screening process
• Inability to verify employment or income
• A history of frequent moves without clear explanation
• Previous evictions or LTB orders on record

No screening process is foolproof, but a consistent and thorough approach significantly reduces your risk. Document your process and apply the same criteria to every applicant. For more rental market insights and landlord resources, visit The Rental Market. If you decide not to rent to someone, base your decision on legitimate, non-discriminatory factors and keep records of your reasoning.