For landlords, thoroughly screening prospective tenants before lease execution is integral to achieving a seamless and profitable investment.

In this article, we will offer critical advice on how to screen tenants as a real estate investor in Toronto. Continue reading for further insights. 

Eager to purchase an investment property in Toronto? Meet with our expert team.

Questions to Ask Prospective Tenants

One particularly critical component of effective screening is speaking directly with potential tenants. 

As a landlord, allowing a renter to formally lease your property without first meeting them is enormously risky. You must meet with and interview any serious candidates before furthering the application process. 

Insightful questions to ask when interviewing a tenant candidate include:

• Why are you moving?
• When did you move last?
• When are you looking to move in?
• What does your ideal apartment look like?
• Will you be living alone? If not, who will be living with you?
• What do you do for work?
• Do you smoke?
• Do you have pets?

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Questions You May Not Ask a Prospective Tenant

Ontario has regulations in place to ensure everyone has an equal and fair right to housing. Therefore, as you proceed with screening, there are certain legal boundaries to be mindful of, including questions you cannot legally ask a potential tenant. 

Non legal inquires include:

• Questions related to an applicant’s age, gender, orientation, religion, or place of origin. 
• Asking if an applicant is disabled or receiving social assistance. 
• Asking if an applicant is in an active dispute under review by the LTB. 
• Asking if an applicant has previously been in a dispute under review by the LTB. 

Document Verification

In addition to personally interviewing candidates, a comprehensive tenant background check should be completed for any tenant who submits an application. As the property owner and manager, you have the authority to request various details and documents as you screen and verify a prospective tenant. 

What Documents Can a Landlord Ask For in Ontario?

Identification Documents

• A copy of government-issued identification.

Personal References 

• Current landlord reference. 
• Past landlord reference. 
• Personal reference (1 or 2).

Employment, Income, and Credit Information

• Employment letter or recent pay stubs. 
• Employer contact information.
• A recent credit report.

How to Run a Credit Check on Tenants

You may run a credit check on any prospective tenants granted they provide consent. However, it is often easier to ask the candidate to provide a recent credit report for you. Most quality candidates will have proactively sourced an updated credit report in anticipation of this process. 

What to Ask Tenant References 

As a landlord, contacting a candidate’s references grants you the opportunity to confirm every last provided detail, while extrapolating further insights into their personality and overall reliability. While this process may sound consuming of time and effort, it is well worth it. 

Beginning with their employment and income references, contact their employer to confirm their role, length of employment, and salary. Next, contact the applicant’s current and previous landlords. Once again, you are simply looking to confirm the details provided; however, you can also ask about their general experience renting to the applicant. 

Finally, contact the prospective tenant’s personal references. Although these contacts may have certain biases (especially if they have a close personal relationship with the applicant), you can still garner other helpful information, such as whether they smoke, have pets, or frequently host social gatherings. 

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Processing a Lease 

Once you have formally assessed your tenant candidate(s), you can decide whether you wish to lease your unit or property to them. Keep in mind that prospective renters are not obligated to proceed with a lease after submitting an application. 

If the tenant accepts your offer to rent, you must sign them to a formal lease – specifically, Ontario’s Standard Form of Lease, also referred to as the Residential Tenancy Agreement. Enforced by Provincial regulations, this legally-binding contract outlines the necessary terms and conditions of the tenancy, clarifying critical rights and responsibilities for both parties. 

Armin Group’s Specialized Investor Support

If you are seeking a seamless and lucrative investment in Toronto real estate, the most advantageous place to begin your journey is with the guiding assistance of a knowledgeable industry professional. That is where we come in, Armin Group. 

Leveraging our direct expertise in Toronto’s active rental landscape, our strategic insights provide you with an unparalleled leg up in sourcing and purchasing a remarkable investment property. As your personal consultants and real estate resource, our dynamic guidance exceeds the transaction.

Ready to invest? Armin Group can help you find high-opportunity properties perfectly suited to your portfolio. Reach us at ar********@************ty.ca or call 416.960.9995.