How to Screen Tenants in Ontario: A Legal Guide for Landlords

Tenant screening is one of the most important steps in property management. A thorough screening process protects your investment, reduces turnover, and minimizes risk — but in Ontario, it must be done within the boundaries of the Ontario Human Rights Code.

What You Can (and Can't) Ask

Under the Ontario Human Rights Code, landlords cannot discriminate based on race, colour, ancestry, ethnic origin, citizenship, place of origin, creed (religion), sex, sexual orientation, gender identity, age, marital status, family status, disability, or receipt of public assistance. This means you cannot refuse to rent to someone because they receive Ontario Works or ODSP.

Legal Screening Criteria

You can legally evaluate tenants based on:

• Credit history: Request a credit report (with the applicant's written consent)
• Income verification: Ask for recent pay stubs, employment letters, or tax returns. A common guideline is rent ≤ 35% of gross income
• Rental references: Contact previous landlords about payment history and property care
• Employment verification: Confirm current employment status and stability

Best Practices for Tenant Screening

1. Use a standard application form for all applicants to ensure consistent, fair evaluation
2. Obtain written consent before running credit checks or contacting references
3. Document your decision criteria — if a dispute arises, you need a paper trail showing the decision was based on legitimate factors
4. Respond to all applicants, even those you decline
5. Verify identity by requesting government-issued photo ID

Understanding Credit Reports for Landlords

In Canada, credit scores range from 300 to 900. A score above 650 is generally considered acceptable for rental applications. Look for patterns of late payments, collections, and total debt load. Remember: you must obtain written consent before pulling a credit report.

Calling References Effectively

Use these targeted questions when contacting previous landlords:

1. Did the tenant pay rent on time consistently?
2. Did the tenant maintain the property in reasonable condition?
3. Were there any noise complaints or disputes with neighbours?
4. Did the tenant provide proper notice before moving out?
5. Would you rent to this tenant again?

Ontario Standard Lease and Move-In Process

Once you've selected a tenant, the Ontario Standard Lease must be used for all new tenancies. Collect the last month's rent deposit (the only lawful deposit in Ontario), conduct a move-in inspection, and set up rent payments.

Shanker Kana's tenant management platform digitizes this workflow. When you accept a tenant, the platform generates the Ontario Standard Lease, sets up payment methods, and begins rent collection automatically.

How Shanker Kana Helps

Shanker Kana integrates tenant screening directly into the onboarding workflow. Track employment verification, income assessment, rental history, references, credit check status, and screening outcome decisions — all in one auditable timeline. Start your free 30-day trial.