Minimize the Risk of Renting to Problematic Tenants

Estimated reading time: 6 minutes

Finding the right tenant is one of the most important parts of managing a rental property. A thorough tenant screening process can help landlords make more informed decisions and reduce the risk of payment problems, avoidable disputes, property damage, and costly turnover.

No screening process can predict exactly how a tenancy will unfold. The goal is to evaluate each application consistently using relevant, verifiable information rather than relying on assumptions or first impressions.

In this guide, we look at what makes a strong rental application and four practical steps Ontario landlords can use when screening prospective tenants.

Why Tenant Screening Matters

Filling a vacant unit quickly is important, but approving an applicant without completing proper due diligence can create much greater costs later.

Rent arrears, property damage, repeated disputes, and an unsuccessful tenancy can lead to lost income, repairs, administrative work, and eventually another vacancy.

A consistent screening process helps landlords evaluate applicants before a tenancy begins, when there is still an opportunity to verify the information provided and compare applications using the same legitimate criteria.

Screening should always comply with the Ontario Human Rights Code. The Ontario Human Rights Commission provides guidance on the information landlords may consider when selecting tenants.

What Does a Strong Rental Application Look Like?

A strong applicant is not defined by one credit score or one piece of documentation.

Landlords should look at the application as a whole and consider relevant information such as:

• Rental history where available.
• Credit history and credit references.
• Ability to pay the rent.
• Information that can be independently verified.
• References from previous landlords where available.
• Consistency between the application and supporting documents.

A lack of Canadian credit or rental history should not automatically be treated as negative. Newcomers, younger applicants, and people entering the rental market for the first time may have limited history while still presenting a strong overall application.

4 Tips for Screening Prospective Tenants

1. Define Your Screening Criteria Before Advertising

A good screening process begins before applications arrive.

Decide which legitimate criteria will be reviewed and apply the same process consistently to prospective tenants. This reduces subjective decision-making and makes applications easier to compare.

Your rental listing can also explain what applicants should expect to provide. For example:

• Completed rental application.
• Consent for a credit check.
• Rental history where available.
• Previous landlord references where available.
• Income or employment documentation where appropriate.

Avoid advertising criteria that could discriminate against applicants based on grounds protected by the Ontario Human Rights Code.

Income information also needs to be handled carefully. Ontario landlords may request it, but it should be considered together with available credit information and rental history rather than applying a fixed rent-to-income ratio.

2. Use a Consistent Pre-Screening Process

Before arranging a showing, a short phone call or written pre-screening process can help confirm whether the property and tenancy expectations are appropriate for the applicant.

Keep the questions focused on the tenancy rather than the applicant's personal characteristics.

Useful questions can include:

• When are you hoping to move?
• How many people will occupy the rental unit?
• Have you reviewed what is included in the rent?
• Are you comfortable completing a rental application and providing consent for the screening process?
• Do you have any questions about the property, lease, utilities, parking, or building rules?

Asking applicants substantially the same questions also makes the screening process more consistent.

3. Use the Property Showing to Explain the Tenancy Clearly

A showing is not only an opportunity for the prospective tenant to inspect the property. It is also an opportunity for both parties to confirm the practical details of the tenancy.

Explain important information such as:

• The monthly rent.
• Which utilities are included.
• Parking or storage arrangements.
• Laundry facilities.
• The anticipated move-in date.
• Smoking rules where applicable.
• Condominium rules if the rental is located in a condo building.
• The application and screening process.

Avoid using the showing to make a subjective decision about whether someone simply “feels” like the right tenant. Personal impressions can introduce inconsistency and unconscious bias into the process.

The application should ultimately be assessed using the same documented criteria applied to other applicants.

4. Verify the Application, Credit and References

Once an application is submitted, verify the information rather than accepting documents at face value.

Depending on the application and the applicant's consent, screening may include:

• Identity verification.
• Credit information.
• Rental history.
• Previous landlord references.
• Income or employment verification.
• Other relevant supporting documentation.

Credit information can be useful, but landlords should look beyond the score alone. Payment history, outstanding obligations, the age of the credit file, and the broader application can provide important context.

An applicant with little or no credit history should not automatically be treated as though they have poor credit.

Previous landlord references can also provide useful information about a prior tenancy. Where practical, verify that the person providing the reference is actually connected to the property rather than relying solely on a telephone number supplied on the application.

Additional Tenant Screening Tips

Verify Employment and Income Information Independently

If employment information forms part of the application, verify it through a reliable source rather than relying only on the contact information provided by the applicant.

For example, confirm that the company exists and use publicly available business information where appropriate to verify the employer.

Remember that the source of an applicant's lawful income should not be used as a basis for discrimination.

Verify References

A reference is only useful if it is genuine.

Where possible, independently confirm the relationship between the reference and the applicant. For a previous landlord reference, this can include confirming that the person was connected with the previous rental property.

Look for Inconsistencies, Not Personal Characteristics

A screening process should focus on objective information.

Differences between dates, addresses, employment information, rental history, or supporting documents may justify asking an applicant for clarification.

Decisions should not be based on protected characteristics such as race, ancestry, place of origin, citizenship, family status, disability, sex, sexual orientation, age, marital status, receipt of public assistance, or other grounds protected by the Ontario Human Rights Code.

Document Your Screening Process

Keeping a consistent record of the screening process can help landlords remember what was verified and why an application was assessed the way it was.

Documentation can include:

• The rental application.
• Applicant consent for applicable checks.
• Reference notes.
• Verification records.
• Relevant correspondence.

Personal information collected during screening should also be handled appropriately and only used for legitimate purposes connected with the rental application.

Tenant Screening Resources

Different landlords use different combinations of listing platforms, credit services, application systems, and reference checks.

Useful resources include:

• Ontario Human Rights Commission — Guidance on human rights and lawful rental-housing practices.
• Equifax Canada — Consumer credit information and resources.
• Rental Listing Platforms — A guide to places landlords can advertise Toronto and GTA rental properties.
• Tenant Placement and Leasing — Information about professional leasing, applicant screening, showings, lease preparation, and move-in coordination.

Features, pricing, and screening services offered by third-party platforms can change, so landlords should review the provider's current terms and privacy requirements before using a service.

Consistency Is the Most Important Part of Tenant Screening

Tenant screening is not about finding a perfect applicant or eliminating every possible risk.

It is about following a repeatable process that uses relevant information to make a reasonable and informed decision.

Define your criteria before applications arrive, ask consistent questions, verify the information provided, assess the application as a whole, and follow Ontario's human rights requirements throughout the process.

A few additional steps before a tenancy begins can help reduce preventable problems later and create a stronger foundation for the landlord-tenant relationship.