Menkes (a large developer in the GTA), recently reported that over 50% of the screened applications they received were fraudulent!

As a real estate investor and landlord myself, my top priority is finding responsible tenants who will pay the rent on time, respect the property, and create a positive rental experience for everyone. However, without proper precautions, it is easy to end up with tenants who cause damage, disrupt neighbors, or neglect their financial obligations - we have all heard of the horror stories about tenants not paying their rent, destroying properties, and ultimately owing landlords tens of thousands of dollars! Luckily I have been able to avoid this situation so far by using a combination of diligence, strategy, and compliance. Whether you're a seasoned property owner or new to renting out your space, a structured approach to tenant screening can save you countless headaches in the future.

Keep in mind that it is very easy to turn down a tenant during the application process, but it is next to impossible to get them out of the property once they are in. You cannot be too careful so take the time to appropriately screen tenants.

Rental Application

The whole process starts once I receive an application to rent the property. In Ontario, this is usually done with an Offer to Lease which usually includes a Rental Application like the one below (if your province doesn’t have a standard form, simply request the information below):

Here are the practical and effective steps I take to minimize the risk of getting a bad tenant while staying within the legal requirements. Keep in mind that it’s all about validating the information you have just received so that you can make an education decision.

1) Hire A Professional

Hiring a professional to do the tenant screening can save you time, reduce stress, and ensure compliance with legal requirements. Note: most real estate agents are not experts in tenant screening! I’m not even an expert at this because I don’t do it frequently enough so I hire someone to do this for me!

Work with someone that has a long track record of finding and placing tenants. For our properties in the GTA, we have been finding that many tenant applications submitted contain falsified information. If you don’t know what you’re looking for or how things are supposed to look, you could easily miss something. Fake IDs, forged documents, altered credit scores - we’ve seen it all!

Spending a bit of money upfront can potentially save you a lot of money in the long run.

2) Search Online Resources

Your first step should be checking databases like OpenRoom.ca and Cannli.org where you can find landlord-tenant judgements posted. If you find any judgements against the prospective tenants, this is a MAJOR red flag.

Other websites like SingleKey can also help screen tenants using automated online tools and can help with

3) Credit Report

NEVER rely on a credit report that has been provided to you by someone - always run your own by using a service like Equifax or TransUnion to assess a tenant's credit history. This helps you gauge their financial reliability and is the best indicator of what type of tenant they will be.

Credit scores in Canada range from 300 to 900 - here is guidance on what it means but generally he higher the better!

You also want to ensure that they are paying their debts in a timely manner, and that they don’t have any debts in collection. You also want to verify all of the information on the credit report against the other information you have been provided in their application. If there are differences, ask why!

4) Employment & Income Verification:

Request recent pay stubs and a letter from their employer to confirm the tenant’s income and job stability with. Call their manager or HR rep and confirm all of the details with them - look them up on LinkedIn to make sure they are real people!

Keep in mind that landlords are allowed to consider a tenant’s income as part of the application process, provided they do so in a non-discriminatory and fair manner, i.e. landlords can assess a tenant's ability to pay rent, they must not use income criteria to discriminate indirectly. For example:

You can ask for proof of income or employment (e.g., pay stubs, employment letters, or bank statements).
You cannot reject a tenant solely because their source of income is government assistance, such as Ontario Works, the Ontario Disability Support Program (ODSP), or other social benefits
The use of a rent-to-income ratio could be discrimination if a landlord rejects a prospective tenant or demands a guarantor, just because of a rent-to-income ratio

5) LinkedIn:

Look the tenant up on LinkedIn to provide valuable insights into their professional and financial stability. It allows you to verify employment details, cross-checking the information provided on their application, and assess their job history for stability. A well-maintained profile can also indicate responsibility and reliability.

6) Social Media Check

Look the tenants up on all of the Social Media apps like Facebook, Instagram, YouTube, TikTok, etc. to provide additional insights into their character, lifestyle, and suitability as a renter. It can help offer clues about their lifestyle, like hosting frequent gatherings or having pets. Social media can also reveal potential red flags, such as irresponsible behavior or activities that might conflict with your property’s (or condos) rules.

7) Landlord References / Past Residences

Checking previous landlord references is a crucial step in tenant screening as it provides direct insights into the applicant’s rental history. To start I look up past residences to make sure that the landlords noted actually own the property. Then, speaking with past landlords can help verify if the tenant paid rent on time, maintained the property, and followed lease agreements. Landlords can also share whether the tenant caused any issues, such as frequent complaints, property damage, or violations of community rules.

This information helps you assess whether the tenant is reliable and likely to respect your property. It’s also an opportunity to confirm details provided in the application, such as rental dates and the reason for leaving. By reaching out to previous landlords, you gain a clearer picture of the tenant’s behavior and reduce the risk of renting to someone who may cause problems.

8) Personal References

This is one of the least important items to check but I always still do it. Checking personal references when screening potential tenants provides an additional layer of insight into their character and reliability. While professional and landlord references focus on rental history and employment, personal references can offer a different perspective on how the tenant behaves in everyday life. These references, such as friends or colleagues, can speak to the tenant’s responsibility, trustworthiness, and how they interact with others.

Personal references can also help confirm that the tenant is a good fit for your property by providing insights into their lifestyle and habits. For example, they may offer information about the tenant's cleanliness, communication style, or how they handle conflict. While personal references should not replace formal checks like credit or landlord references, they help paint a more complete picture of the tenant, allowing you to make a more informed decision.

9) Personal Interview:

Full disclosure, I have never personally interviewed a prospective tenant but I have had clients request this and there is nothing wrong with it! Conducting a personal interview allows you to gain a deeper understanding of their personality, communication style, and reliability. It provides an opportunity to clarify details from their application, such as employment or rental history, and to ask about their expectations as tenants.

An interview also helps you gauge how well the tenant will fit with your property and its rules. For example, you can discuss topics like noise policies, pet ownership, or parking arrangements to ensure alignment. Observing their demeanor and responses can reveal red flags, such as evasiveness or inconsistency, that might not appear in written applications.

Legal Notes & Discrimination

Note that based on human rights in Canada, you are are not allowed to reject tenants based on discrimination. For example, in Ontario, landlords are not allowed to reject tenants based on:

Race
Ancestry
Place of origin
Colour
Ethnic origin
Citizenship
Creed (religion)
Sex (including pregnancy and gender identity/expression)
Sexual orientation
Age
Marital status
Family status
Disability (including mental health)

While it’s important to trust your instincts, always base decisions on objective criteria like creditworthiness, rental history, and ability to pay rent. Keep records of your screening process to demonstrate fairness and compliance with the law.

Final Comments

There are no guarantees but if you follow the steps above, then you will be able to effectively screen the vast of tenants that would not be a good fit for your property. I would much rather keep a property vacant for an extra month or two instead of allowing a tenant to move in that is going to cause me financial hardship, stress, and extra work. When in doubt, follow your gut.