Which Tenant “Qualifications” Are Realistic in 2025?

Choosing the right tenant is both an art and a compliance exercise. In 2025, GTA homeowners renting a condo, basement suite, or investment property face a tighter rulebook, evolving market conditions, and applicants with increasingly diverse profiles—newcomers, remote workers, students, and families. The goal is simple: screen fairly, follow Ontario law, and land a qualified tenant who will pay on time, care for the home, and be a good neighbour.

Below is a fact-checked, plain-language guide to what is realistic (and legal) to ask for this year, plus what to avoid so you protect yourself without running afoul of the Residential Tenancies Act (RTA), the Ontario Human Rights Code, or privacy rules.

What you can reasonably ask for—and how to do it right

1) Income verification (with important human-rights guardrails)

It is reasonable to ask for proof of income, such as a recent employment letter and pay stubs, or two years of Notices of Assessment for the self-employed. But Ontario’s human-rights rules matter:

• Landlords may consider income information together with credit references and rental history (not alone), as set out in Ontario Regulation 290/98 (“Business Practices Permissible”). Avoid simple cut-offs like “rent must be under 30% of income”—those rules can be discriminatory.
  
  

• Ontario Human Rights Commission (OHRC) guidance emphasizes fair screening for groups often disadvantaged by rigid formulas (e.g., newcomers or people receiving public assistance). Ask for a mix of evidence rather than a single income ratio.
  
  

What’s realistic: Request an employment letter, recent pay stubs or contracts, and, where relevant, NOAs or bank statements (redacting non-essential data). Assess the full picture, not a single percentage.

2) Credit reports: what “good” looks like in Canada

Credit checks are standard and reasonable with the applicant’s consent. Equifax Canada categorises scores roughly as: Poor (300–659), Fair/Good (~660–724), Very Good (~725–759), Excellent (760+). Use the score and the trade-line details (missed payments, collections), not the number alone. Newcomers may have thin files; consider alternative documentation before defaulting to a denial.

What’s realistic: A recent credit report (pulled with consent) and explanation of any blemishes. For thin-file applicants, lean more on income proof, letters of reference, and a reasonable guarantor request (see below).

3) Rental history and references

Prior landlord references and on-time payment history are both reasonable. Ask specific questions: cleanliness, noise complaints, how the tenant handled maintenance issues, and whether notice was properly given. Ensure your questions do not stray into protected-ground territory (e.g., family status).

What’s realistic: Two references (employer and past landlord) with permission to contact. Keep your notes factual and consistent across applicants.

4) Privacy-respecting ID collection (and no SIN)

You can ask to verify identity, but the Social Insurance Number (SIN) is not required for tenancy applications or credit checks, and collecting it increases your privacy risk. Canada’s privacy regulator advises landlords not to request SINs; name, current/past address, and date of birth are typically sufficient to run a credit check.

What’s realistic: Photo ID for verification and consent to a credit check—without collecting a SIN.

5) Guarantors and co-signers (when they are appropriate)

Ontario permits requiring a guarantor in reasonable circumstances—typically where the applicant lacks credit history or rental history. The rule again comes from O. Reg. 290/98, which allows taking a guarantor as part of an overall assessment (not based on a protected ground). Be consistent in when you require one, and consider removing the guarantor after a set record of on-time payments.

What’s realistic: A guarantor for thin-file applicants (e.g., newcomers, students), using a clear, consistent policy.

6) Deposits, prepaid rent, and payment methods: what the RTA allows

This is an area where Ontario is strict:

• Only two deposits are legal: a last month’s rent (LMR) deposit and a refundable key deposit (which cannot exceed replacement cost). No damage deposits, pet deposits, smoking deposits, or multi-month “security” deposits. The LMR deposit earns interest at the annual rent guideline rate (2.5% for 2025).
  
  

• Post-dated cheques and automatic debit cannot be required. You and the tenant may agree to them, but you cannot refuse a tenancy because an applicant declines. The law and LTB materials are very clear on this point.
  
  

What’s realistic: Collect the LMR deposit on lease signing, accept first month’s rent on or before move-in, offer (not require) post-dated cheques or PAD, and, if you use key deposits, keep them refundable and no more than replacement cost.

7) Pets: what you can and cannot do

Ontario’s RTA makes “no-pet” clauses void in residential tenancy agreements. You cannot automatically disqualify a tenant for having a pet. That said, landlords can seek remedies if a specific animal causes substantial interference, serious allergies to others, or safety issues. (Condo corporations may have their own rules in declarations and by-laws, which you should disclose and enforce in alignment with the law.) 

What’s realistic: Ask about pets, disclose any building rules, and focus on behaviour—noise, allergies, and damage—rather than banning pets outright.

8) Smoking, vaping, and cannabis

You may include a smoke-free clause in a new or renewing lease, and you may set reasonable house rules for balconies and outdoor spaces that you control. However, Ontario human-rights guidance requires accommodation for medical cannabis use related to a disability, balanced against health, safety, and other residents’ rights. Put the policy in writing, and address ventilation, nuisance, and fire safety.

What’s realistic: A clear, smoke-free policy in the lease, plus a process to consider medical accommodation case-by-case.

9) Occupancy standards and “household size”

Your criteria must respect local occupancy standards. In Toronto, the maximum number of persons in a habitable room is tied to floor area—typically one person per nine square metres of habitable room floor area. Screening questions around household size should be framed to ensure by-law and fire-code compliance, not to exclude families with children (family status is a protected ground).

What’s realistic: Confirm intended occupants and ensure compliance with municipal standards and the Fire Code, without discriminating based on family status.

10) Tenant insurance (liability)

Ontario law does not make tenant insurance mandatory, but the Ontario Standard Lease lets the parties agree that the tenant must carry liability insurance and provide proof. This is common—and prudent—in condos and multi-unit homes.

What’s realistic: A lease clause requiring tenant liability insurance (e.g., $1–$2M), proof before keys are released, and annual renewals.

Setting yourself up to choose well (and defensibly)

Write down your screening criteria

Create a short, transparent checklist that aligns with the rules above. Share it with applicants who ask. Consistency is your best defence.

Use the Ontario Standard Lease, fully and correctly

The Standard Lease and its companion guide explain deposits, insurance, smoking, and notices. Using them reduces surprises and strengthens your position at the LTB if something goes sideways.

Disclose what matters up front

For condos, attach building rules; for new builds, explain the rent-control exemption; for houses, confirm parking, yard use, and any shared utilities. Clear expectations = fewer disputes.

Move quickly, but document everything

In a low-vacancy market, decisiveness wins. Keep timestamped notes of what you asked, what you received, and why you approved the successful applicant (e.g., strong income + clean references + timely communication).

Frequently asked screening questions (2025 edition)

Can I reject an applicant because the household includes children?

No. Family status is protected under the Ontario Human Rights Code. Screen for by-law compliance and behaviour, not family makeup.

Can I ask for six months’ rent up front?

No—you cannot require rent beyond the standard LMR deposit (plus first month’s rent when due). If an applicant volunteers prepayment, obtain legal advice before accepting to avoid contravening the RTA’s deposit rules.

My unit is smoke-free. What if a tenant uses medical cannabis?

Maintain your smoke-free policy, then handle medical accommodation requests case-by-case, balancing disability needs with health, safety, and other residents’ rights. Consider alternatives (edibles, relocation within the building, better sealing).

What’s a reasonable credit score threshold?

There is no law-mandated threshold. Many landlords view ~660+ as “good,” but always weigh other factors (income stability, references, explanations). Thin-file newcomers may merit a guarantor instead of a decline.

Can I require tenant insurance?

Not by statute—but you can make liability insurance a lease requirement using the Standard Lease. Ask for proof before key release.

The bottom line

In 2025, “realistic” tenant qualifications in the GTA boil down to complete, fair documentation—income + credit + rental history—applied consistently, and within Ontario’s legal framework. Avoid rigid income ratios and prohibited deposits, respect privacy (no SIN), disclose rent-control status if applicable, and use the Standard Lease to set clear rules on smoking, insurance, and building policies. Doing it right protects you, respects applicants’ rights, and helps you choose the tenant who will treat your property like a home.

Ready to rent your GTA property the right way? Meet The Johnson Team – Toronto Real Estate. Our award-winning team, led by Jeff and Liz Johnson, is trusted across the GTA for market knowledge, sharp negotiation, and creative marketing. Whether you are leasing a condo, renting a laneway suite, or preparing a home for sale, we help you set compliant screening criteria, price accurately, advertise professionally, and secure the right tenant, quickly and confidently.

If you are ready to get expert help now, please contact The Johnson Team to start working with an agent right away.