Whether you intend to buy a dedicated rental property or are an existing landlord, effectively sourcing and screening tenants will be essential to a smooth and profitable investment.

In this blog, we will offer insights on what real estate investors should know about tenant screening. 

Ready to invest? Our team has decades of industry experience to support your goals. Call 416.772.4723  or reach us by email at evan@christensengroup.ca.

Why Screening Tenants Matters

While a strategically launched venture can feel automated, there is still risk and potential pitfalls when it comes to owning an investment property in Toronto. One of the most significant variables in your success as a landlord, both logistically and financially, is your tenant(s). 

A great tenant will provide on-time rent payments, keep the property in good condition, and limit disruption or hassle to you or other tenants. On the other side of the coin, an irresponsible or financially limited tenant may fall behind on payments, cause problems with the property, or impact your investment in other ways. 

Properly screening potential tenants before signing them to a lease is part and parcel to a high-ROI investment and a smooth landlord-tenant relationship. 

How to Screen Tenants

There are a number of key components to an effective tenant screening process – the first is an interview. 

Signing a tenant without getting to know them poses a big risk. So, you’ll want to speak with any serious candidates before furthering the application process. 

Ask what they’re looking for in a new apartment, and why they’re moving. You can also ask about what they do for work, how long they’ve worked there, and what they like to do in their spare time. If they seem like a good fit, you can ask them to submit a basic rental application. 

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What Documents Can a Landlord Ask For in Ontario?

Once you’ve met a tenant candidate and have a basic feel for who they are, you can ask them to apply. During this step, the tenant will provide a long list of essential details and documents to assist you in determining whether or not they are a good fit for the rental.

As part of a basic rental application, a landlord in Ontario can ask for: 

• A copy of government-issued identification
• Employment letter or recent pay stubs 
• Employer contact information
• A recent credit report
• Current landlord reference 
• Past landlord reference 
• Personal reference (1 or 2)

Can Landlords Ask For Bank Statements or SINs?

Confirming a potential tenant’s income is imperative. However, it is also valuable to confirm a candidate’s financial reserves or credit history to ensure they are financially capable of renting your property. 

As a landlord, you may request to view a potential tenant’s recent bank statements, but they are not legally required to supply them if they are not comfortable with it. The same regulations apply to SIN numbers. Although landlords can now perform a credit check on an applicant without requiring a SIN. 

What Can’t a Landlord Ask?

The province of Ontario has various protections in place to ensure everyone has an equal and fair right to housing. Although you can never be too thorough when screening tenants, there are some legal boundaries to be mindful of. 

As a landlord, there are certain things you simply can’t ask when interviewing and vetting potential tenants in Ontario. 

A few questions you can’t ask a tenant include:

• Anything related to their age, gender, orientation, religion, or place of origin. 
• Whether they are disabled or receiving social assistance. 
• Whether they are in an active dispute under review by the LTB. 
• Whether they have even been in a dispute under review by the LTB. 

Tenant Screening Checklist

Once a potential tenant has provided all the requested information and documentation, you must take steps to verify that the information is accurate and contact all included references. 

• Call the employer to confirm the tenant’s employment status and salary. 
• Thoroughly read through the provided credit report and confirm their credit status. 
• Call their current and past landlords, confirming the details provided in their application. 
• Call their personal references and ask about cleanliness, reliability, and personality. 
• Consider looking them up on social media to search for potential red flags. 

Signing a Lease 

Once you’ve found the right tenant for your property, you’ll need to follow the proper procedures to get them on lease. Ontario enforces a Standard Form of Lease, known as the Residential Tenancy Agreement. This document is a complete, all-in-one template for binding lease agreements. 

In addition to including all the essential details and information, Ontario’s standard lease also outlines critical rights and responsibilities for both the landlord and tenant. 

Your Link to Toronto’s High Opportunity Market

Real estate in Toronto is notoriously competitive. For an investment with maximal returns and minimal labour input, you won’t want to navigate the market on your own.

Boasting over four decades of experience in West Toronto, Christensen Real Estate Group is your best resource for sourcing and securing a profitable income property. As investors and landlords ourselves, we can provide you with critical advice on ROI-optimization, as well as other factors such as tenant sourcing and communication, relevant regulations, and more.

Looking to invest in real estate? We can help! Call 416.772.4723  or reach us by email at evan@christensengroup.ca.