How to Screen Tenants Properly in Ontario

Finding a tenant is relatively easy; finding the right tenant is where the real work begins. In Ontario, where the Residential Tenancies Act (RTA) strongly protects tenant rights and resolving landlord-tenant disputes can take months, a rigorous tenant screening process is your absolute best insurance policy.

Screening isn’t about denying people housing arbitrarily; it’s about verifying facts to ensure an applicant is reliable, financially responsible, and a good fit for your property.

Here is a step-by-step guide to screening tenants properly, professionally, and legally in Ontario.

1. Create a Standard Rental Application

Consistency is key to keeping your screening process both fair and legal. By using the same written rental application for every applicant, you protect yourself against discrimination claims while ensuring you gather identical data points for comparison.

Your rental application form should require:

Full legal names and contact information.
A minimum of 2–3 years of residential history (including contact info for previous landlords).
Current employment details, position, length of employment, and income verification.
Consent to run a credit check and background check.

2. Understand What You Can (and Can’t) Legally Ask

Ontario has incredibly strict human rights laws regarding rental housing. Under the Ontario Human Rights Code, you cannot discriminate against applicants based on race, ancestry, place of origin, citizenship, creed, sex, sexual orientation, age, marital status, family status, or receipt of public assistance.

What You CAN Ask and Request:

Proof of Income: You can request pay stubs, employment verification letters, or tax assessments (NOAs) to confirm they can afford the rent.
Credit History: You can request a credit report or ask for consent to run one yourself.
Rental History: You can ask for references from past landlords.

What You CANNOT Do or Ask:

You cannot ask if an applicant is married, planning to have children, or how many kids they have.
You cannot deny an applicant simply because their income comes from Ontario Works (OW) or the Ontario Disability Support Program (ODSP).
You cannot ask about their citizenship status or demand a Canadian passport (though you can verify eligibility to legally work/study if necessary for contract enforcement).

3. Run a Comprehensive Credit Check

Never rely solely on a printout or PDF copy of a credit report provided by the applicant, as these can easily be altered. Always obtain written consent on the application form and run the credit check yourself through reputable services like SingleKey, Equifax, or Naborly.

When looking at the credit report, don’t just look at the raw score:

Payment History: Look for patterns of late payments or collections accounts, especially from utility companies or past property management firms.
Debt-to-Income Ratio: A high credit score doesn’t mean much if most of their monthly income is already spoken for by heavy credit card or auto-loan debt.

4. Conduct Strict Reference Checks

Past behavior is the single best predictor of future behavior. When calling previous landlords, look out for “fake” references (like a friend posing as a landlord).

Landlord Pro Tip: When you call a landlord reference, start by asking a trick question. For example: “Hi, I’m calling about John’s application for my rental unit. I see he rented your 2-bedroom townhouse on Main Street?” If the applicant actually rented a 1-bedroom apartment from them on Elm Street and the reference agrees blindly to your trick question, you are likely speaking to a friend, not a real landlord.

Key Questions to Ask Real Past Landlords:

Did the tenant pay their rent in full and on time every month?
Were there any documented noise complaints or interpersonal conflicts with neighbors?
Did they maintain the property in a clean and safe condition?
Would you willingly rent to this tenant again? (This is often the most telling answer).

5. Verify Employment and Income

An employment letter looks official, but it takes less than five minutes to fabricate one on a laptop. Always independently verify employment:

Do not just call the phone number listed on the letterhead. Look up the company online, call their main corporate or HR line, and ask to be transferred to the supervisor listed.
Cross-reference the employment letter with recent bank statements showing payroll direct deposits or physical pay stubs matching the stated amount.
As a general rule of thumb, look for a gross monthly income that is at least 2.5 to 3 times the monthly rent amount to ensure the tenant isn’t living “rent-stressed.”

The Golden Rule: Trust the Data, Not Your Gut

It is easy to get charmed by an incredibly polite, friendly applicant during a property viewing. However, professional scammers know exactly how to sound like the perfect tenant.

Never skip a step in your screening workflow because you “have a good feeling” about someone. Establish your baseline criteria, verify every single piece of data objectively, and you will set yourself up for a peaceful, profitable, and stress-free tenancy.