Why Tenant Screening Is the Most Important Thing You Do as a Landlord
In Ontario's landlord-tenant framework, the stakes of a poor tenant placement are extraordinarily high. Unlike many US states where evictions can be processed in weeks, Ontario's LTB process typically takes 3–6 months from first notice to enforcement. A single bad tenant can cost a GTA landlord $10,000–$30,000 in lost rent, legal fees, and property damage. Thorough, legal tenant screening is your primary defence.
Step 1: Create a Rental Application
Before screening anyone, have a written rental application that collects: full legal name, current and previous addresses, employment information and income, references (prior landlords and personal), and consent to a credit check. The application should clearly state that providing false information is grounds for rejection or tenancy termination.
Step 2: Credit Check
With the applicant's written consent, run a full credit bureau report through Equifax or TransUnion. Look for: credit score (generally 650+ is a reasonable threshold, adjusted for the local market), payment history (particularly any rent-related debts or collections), outstanding judgments, and overall debt load relative to income. A credit check costs $15–$30 per applicant and is one of the best investments a landlord can make.
Step 3: Employment and Income Verification
Verify the applicant's employment by requesting a recent pay stub, offer letter, or T4. For self-employed applicants, request a Notice of Assessment from CRA showing their income. As a general guideline, applicants should earn 2.5–3x the monthly rent in gross income. For applicants who don't meet income thresholds, a creditworthy co-signer can be required — a common and legally permissible practice in Ontario.
Step 4: Prior Landlord References
Call the applicant's previous landlords — not just the current one (who may be motivated to give a positive reference to remove a problem tenant). Ask: Did the tenant pay rent on time? Did they give proper notice? Were there noise complaints? Would you rent to them again? Previous landlord references are often the most predictive indicator of future tenant behaviour.
Step 5: Ontario Human Rights Code Compliance
Ontario's Human Rights Code prohibits discrimination based on race, sex, age, family status, disability, receipt of public assistance, and several other protected grounds. Landlords cannot reject an applicant for being on Ontario Works or ODSP, for having children, or for any other protected characteristic. Screening must be based solely on objective, tenancy-relevant criteria: creditworthiness, income, and rental history.
Discriminatory screening is a serious legal risk — Human Rights Tribunal awards can reach tens of thousands of dollars. RidgeSide's screening process is designed to be thorough, defensible, and fully OHRC-compliant.
Let RidgeSide Handle Tenant Screening for You
Professional tenant screening takes time, requires credit bureau access, and demands knowledge of Ontario's legal requirements. RidgeSide Property Management handles the complete screening process for landlords across Mississauga, Vaughan, Markham, and the broader GTA. Contact us to learn about our tenant placement service today.
