Quick Guide to Effective Tenant Screening in Ottawa, ON

Key Takeaways

• A detailed and consistent tenant screening process—including verifying income, checking credit and rental history, and conducting interviews—is key to finding reliable tenants and protecting your Ottawa rental investment.
• Landlords must comply with Ontario’s Residential Tenancies Act and Human Rights Code when conducting background checks and making rental decisions.
• Documenting each step of the screening process helps ensure legal protection, consistency, and fair treatment of all applicants.

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As a landlord in Ottawa one of the most important steps you can take to protect your rental investment is a thorough and effective tenant screening process. We at Stewart Property Management put together this guide to walk you through a step-by-step process and help ensure you find reliable tenants, reduce turnover, and maintain your rental income.

Start With a Strong Rental Application

Begin by requiring all applicants to complete a detailed rental application. This form should ask for basic personal information, current and past rental history, employment and income details, references, and consent to run background and credit checks. Ensure all sections are filled out completely before proceeding to the next steps.

Verify Income and Employment

A stable income is one of the most important indicators of a tenant’s ability to pay rent on time. Ask for recent pay stubs, employment letters, or bank statements to confirm the applicant’s income. 

A good rule of thumb is that rent should not exceed 30 to 40 percent of the tenant’s gross monthly income. If the applicant is self-employed, request proof of income such as tax returns or business bank statements.

Check Credit History

A credit check provides valuable insight into a tenant’s financial behaviour. Look for a history of on-time payments, reasonable levels of debt, and a healthy credit score. Be cautious of tenants with a history of late payments, high debt, or accounts in collections. While a perfect credit score is not necessary, a good credit history shows financial responsibility. Make sure the applicant gives written permission to run a credit check.

Review Rental History and Contact Previous Landlords

Previous actions can often provide valuable insight into how a tenant may behave in the future. Contact previous landlords to ask about the applicant’s rental history. Questions to ask include:

• Did the tenant pay rent on time?
• Was the unit kept clean and in good condition?
• Did they follow the rules of the lease?
• Was the security deposit returned in full?
• Would you rent to this tenant again?

Based on the answers given, you can decide whether or not to move forward with renting to them. 

Perform a Background Check

In Ottawa, landlords have the right to conduct background checks when looking to rent out their house. The process can include a review of public records, relevant criminal history, and eviction records. This helps you identify any red flags that could put your property or other tenants at risk. Be sure to comply with Ontario’s privacy and human rights laws when gathering and using this information. Note that like credit check, background checks must be done with the applicant’s knowledge and written consent.

Interview the Applicant

While paperwork is essential, a face-to-face or virtual interview can provide further insight. Use this opportunity to ask follow-up questions based on their application and clarify any inconsistencies. Pay attention to how they present themselves and whether they show respect and responsibility. This is your chance to evaluate whether they will be a good fit for your Ottawa residential rental property.

Ensure the Process Remains Fair

It’s important to trust your instincts, but also ensure that your decision-making process is fair and based on objective information. In Ontario, the Human Rights Code prohibits discrimination based on race, religion, gender, disability, family status, and other protected grounds.

To remain compliant, focus on financial qualifications, rental history, and past rental behaviour, not personal characteristics.

Document Your Process

Keep written records of every step of the screening process, including notes from landlord references, interviews, and application documents. This protects you legally and helps ensure consistency when reviewing multiple applicants. Having a standard checklist for each applicant can also help reduce bias and ensure you follow the same process every time. Additionally, thorough documentation provides a clear trail in case of disputes or questions about how a decision was made, helping to demonstrate fairness and compliance with legal requirements.

Make a Decision Promptly

Once you’ve completed your checks, make a decision in a timely manner. Good tenants are often in high demand, and delays could result in them renting elsewhere. If you decide to reject an applicant, inform them respectfully and in writing. If you accept a tenant, move forward with signing a detailed lease agreement that outlines the rules, responsibilities, and expectations clearly. It’s also important to document all communications and agreements to protect both you and the tenant.

Follow Legal Guidelines

All tenant screening practices must comply with Ontario’s Residential Tenancies Act and the Human Rights Code. Not following the law can expose you to legal complaints or fines. Familiarize yourself with what is legally allowed when collecting and storing tenant information, running checks, and making rental decisions. 

Bottom Line

Effective tenant screening is not just a good practice, it’s a critical step in protecting your property and ensuring consistent rental income. By following a clear process that includes verifying income, checking credit, speaking with past landlords, and complying with Ontario laws, landlords can significantly reduce the risk of renting to unreliable tenants.

At Stewart Property Management, we help landlords in Ottawa carry out professional, compliant, and effective tenant screening. Our experienced management team understands local rental laws and best practices ensuring all steps are documented properly. Whether you are a first-time landlord or managing multiple units, we provide the support you need to find the right tenants with confidence. If you’re ready to improve your tenant selection process, contact Stewart Property Management today. Let us help you manage your rental properties!