Securing reliable tenants is essential for maintaining steady rental income and minimizing potential issues. The process requires careful screening, clear communication, and full compliance with anti-discrimination and privacy laws.
What can you ask prospective tenants?
Consult a legal professional or landlord association to ensure you follow applicable rental laws. Acceptable and relevant questions may include:
- Full name, address, and date of birth (for credit checks)
- Government-issued ID details to confirm identity
- Past rental experience (note: lack of history is not grounds for rejection)
- Permission to run credit checks and contact references
- Source of income and monthly expenses to assess financial stability
- Employment status and workplace (to verify stability)
- Names of all occupants (for security and lease documentation)
It is acceptable to ask specific, relevant questions that help assess a tenant or buyer’s suitability, provided they are framed appropriately and respect privacy laws. Examples include inquiring about their income to ensure they can meet financial obligations, confirming whether they are employed and where they work to verify stability, and asking who will be living in the property along with their names for security and lease documentation purposes. These questions should always be asked in a professional manner and limited to information directly related to the transaction.
What topics and questions do you need to avoid?
Avoid questions that may be considered discriminatory or invasive, including:
- Personal identifiers: SIN, age, country of origin, religion, gender expression, family status
- Protected characteristics: disabilities, sexual orientation, pregnancy status, whether they have children, marital status
- Financial status beyond affordability, such as whether they are on social assistance
- Past disputes or legal conflicts
- Lifestyle choices, such as smoking (instead, specify in the lease if the property is non-smoking)
Staying within these boundaries ensures compliance with human rights legislation and fosters professional, respectful interactions.
Define your ideal tenant
Before you list your rental property, take time to consider what characteristics your ideal tenant would have and what restrictions you wish to impose. Clarifying these details in advance ensures a smoother, more effective, process. Key aspects to consider include:
- Minimum income requirements
- Guarantor policies for lower income applicants
- Preferred length of previous rental history
- Desired move-in date and lease term (short- or long-term)
- Quality of references from employers and landlords
- Pet and smoking policies
- Tenant profile (e.g., professionals, students, families)
Write a clear rental listing
A well-written listing helps attract the right tenants from the start. Position the most crucial information prominently. Be clear on any requirements, such as a pet-free or smoke-free environment.
Pre-screen potential tenants effectively
Create a standardized pre-screening questionnaire to quickly determine whether an applicant meets your basic criteria before scheduling viewings. This helps clarify whether a potential tenant is qualified enough to be considered further.
Meet in person
Meet potential tenants in person to evaluate them thoroughly and allow them to see the property. An in-person viewing allows you to answer questions, gauge the applicant’s interest, and observe communication style and professionalism.
Application and verification
The application process offers an opportunity to gain deeper insights into potential tenants while staying within legal boundaries. During the application process, collect only legally permitted information:
- Rental history
- Income verification
- References
- Credit scores
Evaluate their responsiveness and communication as additional indicators of reliability. Verify all information, including identity, employment, and landlord references, and consider a criminal background check where permitted.
Assess rent affordability
Determine if the tenant can comfortably afford the rent. Confirm their rent-to-income ratio, and follow the guideline that rent should not exceed 35% of the tenant’s gross income to ensure affordability.
Screening best practices
- Screen co-applicants and all adults who will live in the property to avoid risks from unscreened individuals
- Apply uniform standards to all applicants to avoid bias and ensure fairness; consistency also simplifies the screening process and helps avoid legal issues
- Use comprehensive and standardized application forms and questions to ensure you gather consistent and relevant information
- Keep detailed, organized and secure records of all applications, communications and decisions made during the tenant selection process, to protect yourself in case of disputes and provide a clear audit trail of your decision-making process
A consistent, compliant, and thorough tenant selection process will help you secure reliable renters, protect your property, and maintain steady cash flow.
Are you or someone you know thinking about investing in real estate? Work with a local RLP InvestorsEdgeTM agent who can help you every step of the way.