Complete Guide to Tenant Screening in Ontario

Why Tenant Screening Matters

Let's be honest. A bad tenant can cost you thousands. Between missed rent payments, property damage, and the lengthy eviction process through the Landlord and Tenant Board (LTB), the stakes are high. Good screening isn't about being picky. It's about being thorough.

Ontario's Residential Tenancies Act (RTA) gives tenants significant protections. That's actually a good thing for everyone. But it also means you need to get your tenant selection right the first time. Once someone moves in, removing them is expensive and time-consuming.

The good news? A solid screening process dramatically reduces your risk. Here's how to build one.

Step 1: Create a Solid Rental Application

Your application form is your first line of defense. It should collect enough information to make an informed decision without crossing legal boundaries.

What to Include

• Full legal name and date of birth
• Current and previous addresses (at least two years)
• Employment information including employer name, position, and income
• References from previous landlords (minimum two)
• Consent to a credit check
• Number of occupants who will live in the unit
• Pet ownership details if applicable

What You Cannot Ask

Under Ontario's Human Rights Code, you can't discriminate 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. Don't ask about these on your application. Period.

You also can't require a Social Insurance Number (SIN). Some landlords try. Don't be one of them.

Step 2: Run a Credit Check

A credit check is one of the most valuable tools in your screening toolkit. It tells you how a person handles financial obligations.

You'll need written consent from the applicant. Most credit bureaus like Equifax and TransUnion offer landlord-specific products. Look for:

• Credit score (generally, 650+ is considered acceptable)
• Payment history on existing debts
• Outstanding collections or judgments
• Debt-to-income ratio

A low credit score doesn't automatically mean "no." Some applicants have thin credit files, especially younger renters or newcomers to Canada. Consider the full picture.

Tools like BricksAbove can help you organize applicant information and keep your screening process consistent across all your properties.

Step 3: Verify Employment and Income

The general rule of thumb? Rent should be no more than 30% to 35% of gross income. If your unit rents for $2,000 per month, you're looking for a household income of at least $5,700 to $6,600.

How to verify:

1. Request recent pay stubs (two to three months)
2. Ask for an employment letter on company letterhead
3. Call the employer directly to confirm (use the company's main number, not one the applicant provides)
4. For self-employed applicants, request a Notice of Assessment from CRA or recent bank statements

Step 4: Contact Previous Landlords

This step is crucial and too many landlords skip it. Previous landlords can tell you things no credit report will.

Questions to Ask

• Did the tenant pay rent on time?
• Was the unit kept in good condition?
• Were there any noise complaints or disputes with neighbours?
• Did the tenant provide proper notice before leaving?
• Would you rent to this person again?

Pro tip: Contact the landlord before their current one. The current landlord might give a glowing review just to get rid of a problem tenant.

Step 5: Meet the Applicant in Person

A face-to-face meeting or video call gives you a chance to assess the person beyond paperwork. Are they respectful? Do they ask thoughtful questions about the property? Do their answers match their application?

Show them the unit. Watch how they react. Do they seem genuinely interested in maintaining the space, or are they just looking for something cheap and fast?

Trust your instincts, but don't let bias creep in. Stick to objective criteria.

Step 6: Use the Ontario Standard Lease

Since April 2018, Ontario requires landlords to use the Standard Lease for most residential tenancies. This protects both parties. Don't try to use a custom lease you found online. The standard form covers everything you need and any illegal clauses are void even if the tenant signs them.

Key items to fill in carefully:

• Rent amount and due date
• What's included (parking, utilities, storage)
• Rules about smoking and pets
• Additional terms (keep these reasonable and legal)

Red Flags to Watch For

Over time, you'll develop a sense for warning signs. Here are the most common ones:

• Pressure to move in immediately without proper screening
• Reluctance to provide references or consent to a credit check
• Inconsistent information between the application and conversation
• Gaps in rental history that can't be explained
• Offering several months' rent upfront to avoid the screening process
• Negative or evasive previous landlord references

Keeping Records

Document your screening process for every applicant. If someone files a human rights complaint, you'll need to show that your decision was based on objective, non-discriminatory criteria.

Keep records of:

• All applications received
• Credit check results
• Reference check notes
• Your reasons for accepting or declining each applicant

A property management platform like BricksAbove makes this easy by centralizing all your tenant documentation in one place. You can track applications, store documents, and maintain a clear audit trail. Sign up to see how it works.

Setting the right price starts with understanding the full financial picture. Use our free rent calculator to compare your property against market benchmarks. Then run the numbers through our rental income calculator to confirm your asking price covers all expenses and leaves healthy margins.

Final Thoughts

Tenant screening is an investment of time that pays off enormously. A systematic approach protects your property, reduces turnover, and saves you from costly disputes at the LTB.

Take the process seriously. Be consistent. Be fair. And remember: the best tenant relationships start with transparency on both sides.