Tenant Screening Best Practices for Ontario Landlords

Effective tenant screening is one of the most important responsibilities for Ontario landlords. A thorough screening process helps protect your investment while ensuring compliance with legal requirements.

Legal Framework

Ontario landlords must balance thorough screening with respect for tenant rights under:

• Residential Tenancies Act, 2006
• Ontario Human Rights Code
• Personal Information Protection and Electronic Documents Act (PIPEDA)

Permitted Screening Activities

Credit Checks

You may request a credit report to assess financial responsibility. Obtain written consent and use a reputable credit bureau.

Employment Verification

Confirming employment and income is standard practice. Request recent pay stubs or employment letters.

Rental History

Contact previous landlords to verify tenancy history, payment patterns, and any issues.

Reference Checks

Professional and personal references can provide additional insight into character and reliability.

Prohibited Screening Practices

Under the Human Rights Code, you cannot discriminate based on:

• Race, ancestry, place of origin, color, ethnic origin
• Citizenship, creed, sex, sexual orientation, gender identity
• Age, marital status, family status
• Disability
• Receipt of public assistance

What This Means

You cannot:

• Refuse tenants receiving Ontario Works or ODSP
• Apply different screening criteria to families with children
• Refuse service animals (even if you have a "no pets" policy)
• Ask invasive questions about protected grounds

Best Practices

1. Standardize Your Process

Use the same application form and criteria for all applicants. Document your process clearly.

2. Focus on Relevant Factors

Screen based on: - Ability to pay rent (income verification) - Rental history and references - Credit history (within reason)

3. Be Transparent

Clearly communicate your requirements upfront. Explain what you'll verify and why.

4. Document Everything

Keep records of all applications, screening results, and decision rationale.

5. Protect Privacy

Store personal information securely and dispose of it properly when no longer needed.

Red Flags to Watch For

While remaining compliant, watch for genuine concerns:

• Significant inconsistencies in application information
• Poor communication or evasiveness
• Negative rental history from multiple landlords
• Insufficient income to afford rent (generally 3x monthly rent)

The Application Process

Required Documents

Standard requests include: - Completed rental application - Government-issued ID - Proof of employment/income - Rental history (previous addresses) - References

Application Fees

Ontario landlords can charge for credit checks but cannot charge general "application fees."

Making Your Decision

Once screening is complete:

1. Review all information objectively 2. Apply your criteria consistently 3. Document your decision 4. Notify applicants promptly

If rejecting an application, you don't need to provide detailed reasons, but ensure your decision isn't based on discriminatory factors.

Professional Screening Services

Many property management companies, including Royal York Property Management, offer professional tenant screening services that ensure compliance while protecting your investment.