A guide to tenant screening: Tips and best practices

What is tenant screening?

Tenant screening is the process of evaluating rental applicants to determine whether they are likely to meet their lease obligations. It typically includes reviewing a rental application, verifying income and employment, checking credit history (with consent), and contacting references.
 

Ontario tenant screening laws

Tenant screening in Ontario is governed by several provincial and federal laws. Landlords must follow these requirements carefully:

• Ontario Human Rights Code: Prohibits discrimination in housing based on protected grounds such as race, ancestry, place of origin, citizenship, creed, sex, sexual orientation, gender identity, family status, disability, and more.
   
• Ontario Regulation 290/98 under the Human Rights Code: Sets out certain business practices landlords may use when selecting prospective tenants, including credit references, rental history, credit checks, income information, and guarantees. It also limits how income information can be requested and considered.
   
• Personal Information Protection and Electronic Documents Act (PIPEDA): Requires informed consent before collecting, using, or disclosing personal information, including credit reports.
   
• Consumer Reporting Act (Ontario): Regulates how consumer (credit) reports are obtained and used, including related disclosure and compliance requirements.

Understanding these statutes is essential before implementing or updating your screening process.
 

What landlords may ask for in Ontario

Landlords in Ontario may be able to ask for certain information that helps assess whether an applicant is likely to meet their rental obligations. This may include rental history, a credit check, credit references, and income information. Any information collected should be reasonably necessary for the screening process and handled with appropriate consent and care.
 

What landlords should avoid asking

Landlords should avoid asking questions that could reveal information connected to protected human rights grounds or that go beyond what is reasonably necessary for screening. For example, questions about religion, ethnicity, disability, or other personal characteristics beyond what is needed for the tenancy can create human rights concerns.
 

Can landlords ask about tenant income?

According to the Ontario Human Rights Commission (OHRC), “Income information may be sought and considered only if the landlord also seeks and considers information about the prospective tenant’s credit references and rental history.”

Additionally, “It is illegal for housing providers to apply a rent-to-income ratio such as a 30% cut-off rule. However, income information alone and rent-to-income ratios may be considered when tenants are applying for subsidized units where the rent amount is geared to income level.”
 

What a typical tenant screening process looks like

While every application process may be different, many follow similar steps:

1. The applicant completes a rental application: The process usually begins with a completed application form that includes basic information about the applicant, their employment, income, and rental history.
    
2. The landlord gets consent for screening: Before conducting any credit or reference checks, the landlord should get the applicant’s consent and explain how the information will be used.
    
3. The application is reviewed for completeness: The landlord or property manager reviews the application to confirm that all required information has been provided and to identify any missing or inconsistent details.
    
4. Income and employment information is verified: The next step is typically to confirm that the applicant’s income and employment information is accurate and shows the applicant has enough income to cover the rent.
    
5. Credit and reference checks are completed: Where appropriate, the landlord may review credit information and contact references, such as previous landlords, to better understand the applicant’s rental history and reliability.
    
6. The application is assessed against established criteria: Once the information has been collected, the landlord reviews the application using the same screening criteria applied to other applicants.
    
7. A decision is made and documented: If the applicant meets the screening criteria, the landlord may move forward with the lease. If not, the decision should be documented clearly and handled consistently.

10 tips for better tenant screening

1. Use a consistent process for every applicant

   A consistent screening process helps you treat every applicant fairly from the first conversation onward. When your steps stay the same each time, you can compare candidates more clearly and build a professional process that’s easier to stand behind.
    

2. Get written consent before any checks

   Always obtain clear, written consent before conducting credit or reference checks. Reference applicable privacy laws in your form and explain how information will be used and stored.
    

3. Train anyone involved in leasing

   If staff are involved in reviewing applications, provide basic training on Ontario tenant screening laws. Consistency across decision-makers is critical.
    

4. Avoid over-collecting personal information

   Collect only information that is reasonably necessary to assess the tenancy. Overly intrusive questions can create privacy and human rights concerns.
    

5. Focus on patterns, not one-off issues

   A single late payment or brief employment gap may not tell the full story. Look for overall patterns in payment history, stability, communication, and references rather than placing too much weight on one detail.
    

6. Speak with past landlords if possible

   A short conversation with a former landlord can reveal a lot. Ask direct questions and listen for patterns. A calm, factual reference often tells you more than a glowing one that feels vague or overly polished.
    

7. Use the tenant interview process to assess fit

   A short, professional conversation can help confirm details from the application and give you a better sense of the applicant’s expectations, timeline, and communication style. This can be especially helpful when deciding between multiple qualified applicants.
    

8. Review your process at least annually

   Ontario laws and best practices evolve. Review your tenant screening forms, criteria, and procedures each year to confirm they align with current legislation and market conditions.
    

9. Handle denied applications professionally

   If you decline an applicant, communicate professionally and promptly. If the decision relates to credit information, be prepared to provide any required disclosures under the Consumer Reporting Act. Avoid sharing unnecessary details, but maintain a clear, documented rationale.
    

10. Work with a professional property manager

    Professional property management companies can help implement compliant tenant screening procedures, maintain documentation, and stay current with Ontario regulatory requirements. This reduces risk and supports consistent leasing practices across your portfolio.

About FirstService Residential

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To learn more, contact a member of our team today.

This information is provided for general informational purposes only and is not intended to constitute, and should not be relied upon as, legal, regulatory, financial, or operational advice, or as a representation or guarantee of any specific services, capabilities, or outcomes. Property management needs, regulatory requirements, market conditions, and available services vary by jurisdiction, property type, and community. FirstService Residential provides services through locally based affiliates and associates, and services and results may vary by community, region, contractual terms, and applicable law.