Tenant screening is one of the most critical steps for landlords and property managers in Ontario. Approving the right tenant can protect your investment, ensure timely rent payments, and reduce costly evictions or property damage. However, Ontario has specific laws governing the landlord-tenant relationship, including human rights considerations and tenant selection criteria.

This guide provides an overview of best practices and legal requirements when approving tenants in Ontario.

Understanding the Legal Framework

In Ontario, landlords must comply with:

• Residential Tenancies Act (RTA)
• Ontario Human Rights Code (OHRC)

Under the OHRC, it is illegal to discriminate against tenants based on protected grounds such as race, religion, age, marital status, family status, disability, sexual orientation, gender identity, and others. Landlords can, however, apply objective, business-related criteria as long as they do not infringe on these rights.

Key Steps in Tenant Screening and Approval

1. Create a Clear Rental Application Process

Start by using a detailed, legally compliant rental application form that collects:

• Full name and contact information
• Employment details
• Income verification
• Previous landlord references
• Credit authorization consent

2. Verify Employment and Income

Ensure the applicant has stable and sufficient income to cover the rent, generally following the “3x rule” (income is at least three times the rent). Acceptable proof includes:

• Recent pay stubs
• Employment letter
• Bank statements
• Proof of savings

3. Conduct Credit and Background Checks

With written consent, you can request a credit report through agencies such as Equifax or TransUnion. Review:

• Credit score and history
• Debt levels
• Payment patterns
• Public records (bankruptcy, collections)

4. Check Rental History and References

Contact previous landlords to confirm:

• Rent payment history
• Lease violations
• Property condition upon move-out
• Evictions (if any)

Tip: Always verify references are legitimate by cross-checking phone numbers and addresses.

5. Personal Interview (Optional)

Meeting the applicant allows you to assess communication, professionalism, and attitude. However, avoid questions that could breach the OHRC (e.g., questions about family status, ethnic origin, or disabilities).

6. Apply Consistent, Written Criteria

Establish a written tenant selection policy and apply it consistently to avoid claims of discrimination. Acceptable criteria include:

• Ability to pay rent
• Creditworthiness
• Good rental history
• Clean background (if legally obtained)

Important Considerations

Protect Privacy

Handle all personal information in compliance with Ontario’s privacy laws (Personal Information Protection and Electronic Documents Act – PIPEDA).

First-Come, First-Qualified

To avoid allegations of bias, some landlords adopt a “first-come, first-qualified” approach—offering the unit to the first applicant who meets the criteria.

Avoid Pitfalls and Discrimination

Do not reject an applicant solely because they are newcomers, on social assistance, students, or have children—these practices may violate the OHRC.

When You Can Legally Refuse a Tenant

You can legally refuse applicants based on:

• Inability to pay rent
• Bad credit history
• Poor landlord references
• Incomplete application
• Providing false information

Conclusion

Approving tenants in Ontario requires a balance of thorough screening and strict compliance with the law. By following a transparent, fair, and consistent process, landlords can protect their properties while respecting tenants’ rights under the Ontario Human Rights Code and the Residential Tenancies Act.

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