The Landlord's Guide to Tenant Screening

As a landlord in the Greater Toronto Area, nothing matters more than choosing a reliable tenant. The wrong renter can lead to late payments, property damage, and costly disputes with neighbours or through the Landlord and Tenant Board. That’s why tenant screening isn’t just an administrative task—it’s your first line of defence in protecting your investment. In this guide, you’ll learn how to build a legally compliant, effective screening process, step by step. By the end, you’ll have clear tools, actionable checklists, and expert insights to confidently choose tenants who treat your property like home.

Why Tenant Screening Matters

A robust tenant screening process isn’t just about filling a vacancy—it’s about securing your long-term interests:

• Financial stability. Credit checks reveal payment patterns and debt history, helping to minimise rent defaults.
  
  

• Property care. Rental history checks help you uncover past issues like damage or lease violations.
  
  

• Community safety. Criminal background checks, used responsibly, protect your building and other tenants.
  
  

• Legal protection. Proper documentation and consistent practice reduce the risk of human rights complaints or financial penalties.

Setting Your Rental Criteria

Defining Clear, Fair Standards

Before advertising your property, define criteria based on objective, legal factors:

• Income threshold: Many landlords in Ontario aim for total monthly income of at least three times the rent.
  
  

• Credit score guideline: A minimum score—e.g. 650—can indicate financial reliability.
  
  

• Rental history: Look for consistent on-time payments and no evictions.
  
  

• Employment stability: Confirm ongoing work with verifiable income.
  
  

• Lifestyle factors: Pets, smoking, number of occupants—listed transparently in the lease.
  
  

By posting these criteria clearly in your listing, you attract serious applicants and discourage unsuitable ones.

The Tenant Screening Process: Step by Step

1. Pre‑Screening & Standard Applications

Create a standard rental application used for every candidate. Include sections for:

• Personal info: legal name, birthdate, address.
  
  

• Employment: employer name, position, income.
  
  

• Rental history: landlord contacts, previous addresses.
  
  

• References: personal and professional.
  
  

• Consent clauses: credit/background checks, data handling.
  
  

This ensures fairness and is legally required under PIPEDA.

2. Credit & Background Checks

With consent, order credit reports from TransUnion or Equifax—these reveal financial risk.

Use a trusted provider to access criminal records and eviction history. In Ontario, criminal checks aren’t prohibited, but must not be used discriminatorily.

3. Employment & Income Verification

Request recent pay stubs, bank statements, or employment letters. Call the employer using publicly listed contacts to verify—beware of falsified documents.

4. Rental History & Reference Checks

Contact at least two previous landlords. Ask:

• Was rent paid timely?
  
  

• Did the tenant respect the property?
  
  

• Would you rent to them again?
  
  

For applicants without rental history, ask for employer or character references.

5. Identity Verification

Confirm the tenant’s identity with a government‑issued photo ID (driver’s licence, passport). Compare it to the application and the provided documentation.

6. In-Person Interview

Meeting face to face can reveal useful insights:

• Punctuality
  
  

• Presentation
  
  

• Communication style
  
  

• Alignment of expectations
  
  

Trust your intuition—it often signals hidden red flags.

Legal Considerations & Fair Housing

Avoiding Discrimination

Ontario’s Human Rights Code prohibits discrimination based on race, age, family status, disability, etc. Don’t ask for information about:

• Age or marital status
  
  

• Sexual orientation
  
  

• Public assistance
  
  

• Religious beliefs.
  
  

Apply the same screening criteria consistently to every applicant.

Privacy Compliance

Under PIPEDA, landlords must:

• Obtain consent before collecting personal information.
  
  

• Protect the confidentiality of tenant data.
  
  

• Store documents securely, and destroy them when no longer needed.

Tools to Streamline the Screening Process

Consider using:

• Online applications with built-in consent and document uploads.
  
  

• Automated credit and criminal checks that return results instantly.
  
  

• Tenant screening services that handle verification and record-keeping.
  
  

These save you time and reduce risk of missing a critical screening step.

Red Flags to Watch For

While evaluating applicants, stay vigilant for:

• Falsified pay stubs or employment letters.
  
  

• Edited credit reports or mismatched fonts.
  
  

• Large advance rent offers on low income—could mean short-term trouble.
  
  

• Gaps or inconsistencies in rental history or employment.
  
  

No screening method is foolproof—but a thorough process sharply reduces your risk.

Final Decision & Documentation

1. Compile all collected information: application, credit/background reports, references.
   
   

2. Compare against your pre-set criteria objectively.
   
   

3. If you decline an applicant due to credit or criminal data, provide an “adverse action” notice with a summary of decision reasons.
   
   

4. Once approved, remind them to maintain tenant insurance (min. $1 million liability) and request renewal proof annually.
   
   

5. Document everything for legal compliance and future defence.

The Takeaway

Tenant screening isn’t just another task—it’s your shield against financial loss, legal headaches and stress. For GTA landlords, it’s about protecting your asset and ensuring reliable rent, respectful tenants and hassle-free tenancies. By following this guide—from pre-screening to final approval—you’re setting your property and your investment up for success.

If you're a homeowner ready to list or sell, or want trusted advice about rental property opportunities, the experts at The Johnson Team are here to help. Contact The Johnson Team today to get started—because when it comes to your property, nothing is more important than peace of mind.