Choosing the right tenant is the most important decision you'll make for each of your units. A problem tenant can cost thousands in unpaid rent, damages, and legal fees. A rigorous, well-documented, and legally compliant screening process protects you and helps you find reliable long-term tenants.
Legal vs. illegal screening criteria
- Prohibited: race, colour, ethnic or national origin, religion, political beliefs, sex, pregnancy, sexual orientation, marital status, age, disability, social condition, family status
- Permitted: financial capacity (income, credit history), previous behaviour as a tenant, reliability demonstrated through references
- Grey area: requiring a co-signer can be legitimate when income is insufficient, but cannot be used in a discriminatory manner
Document your decisions
If you reject a candidate, note the objective, legal reasons in writing: insufficient income (exact amount), poor references, low credit score. This documentation protects you if a complaint is filed with a human rights commission.
Credit checks
A credit report gives you an objective picture of a candidate's financial reliability. Services like Certn or SingleKey combine credit, identity verification, and rental history in one report. Always get written consent before ordering a report. A score of 650+ is generally satisfactory — but always read credit in context.
Income verification
The general rule: gross monthly income should be at least 2.5 to 3 times the monthly rent. For a $1,200 rent, you're looking for at least $3,000–$3,600 in gross monthly income. Acceptable documents: employment letter, last two pay stubs, CRA Notice of Assessment for self-employed, or last three months of bank statements.
Landlord references
Previous landlord references are often more revealing than credit. Call directly and ask precise questions: did they pay on time? Did they respect the unit? Would you rent to them again?
Red flags
- Pressure to sign immediately without waiting for checks
- Evasive or shifting stories about their previous landlord
- Refuses to sign the credit check consent form
- Offers to pay several months upfront in cash
- Reference property is listed under a friend or family member's name
- Stated income is difficult to document or seems inconsistent
Making the decision
Apply the same criteria to every candidate consistently. Notify rejected candidates promptly — a professional process protects your reputation and attracts better candidates in the future.