Placing the right tenant is the single most important decision you make as a landlord. A thorough screening process dramatically reduces the risk of unpaid rent, property damage, and LTB hearings. Here is how to do it properly in the Waterloo Region market — efficiently, legally, and effectively.

Build a Consistent Application Process

Consistency is your legal protection. Apply the same screening criteria to every applicant, document your process, and keep records. Your rental application should collect full legal name, current and previous addresses (3 years), employer and income information, references, and consent to a credit check. Using a standardized form ensures you gather everything you need while treating all applicants equally under the Ontario Human Rights Code.

In Waterloo Region's competitive rental market — with the University of Waterloo, Wilfrid Laurier, and Conestoga College creating seasonal surges — you may receive many applications quickly. Having a clear, organized process helps you move fast without cutting corners.

Run a Credit Check (With Consent)

Ontario landlords can run credit checks, but you must have the applicant's written consent first. Services like Equifax, TransUnion, or tenant screening platforms like Naborly and Certn provide detailed credit reports. What to look for:

• Credit score: a score above 650 is generally considered good; below 600 warrants closer review
• Payment history: patterns of missed payments on loans, credit cards, or previous rent
• Collections accounts: especially any prior eviction-related collections
• Debt-to-income ratio: how much of their income goes to existing debt obligations

Do not reject an applicant based on credit score alone. A low score due to medical debt or a recent divorce may not predict their rental behaviour. Use credit as one data point among several.

Verify Income and Employment

The traditional guideline is that rent should not exceed 30–35% of a tenant's gross income. Ask for recent pay stubs, a letter of employment, or T4 slips. Self-employed applicants can provide Notices of Assessment. For students or new graduates — common in Waterloo Region — a co-signer or guarantor may be appropriate.

Call the employer directly using a number you find independently (not one the applicant provides) to confirm employment status and duration. This quick step catches fraudulent letters of employment, which have become more common as rental markets tighten.

Contact Previous Landlords

Previous landlord references are often the most predictive data point. Ask previous landlords: Did the tenant pay on time? Did they give proper notice? Were there any complaints from neighbours? Would you rent to them again? Be aware that some applicants list friends or family as references — try to verify you are speaking with a genuine landlord by looking up the property address.

If an applicant cannot provide a previous landlord reference (e.g., they are renting for the first time), ask for character references and perhaps require a co-signer.

What You Cannot Consider

The Ontario Human Rights Code prohibits discrimination based on race, ancestry, citizenship, ethnic origin, place of origin, creed, sex, sexual orientation, gender identity, age, family status, marital status, disability, and receipt of public assistance. You cannot refuse a tenant because they have children, because they receive Ontario Works or ODSP, or because of their national origin. Violations can result in Human Rights Tribunal complaints and significant financial penalties.

You can, however, decline an applicant because of poor credit history, insufficient income, negative landlord references, or prior evictions — as long as you apply these criteria uniformly.

Frequently Asked Questions

Can I ask about criminal history?

This is a grey area under the Human Rights Code. You generally cannot refuse a tenant solely because of a prior criminal conviction, particularly one unrelated to property damage or fraud. Consult a legal professional before incorporating criminal background checks.

Do I have to accept the first qualified applicant?

No. You can review multiple applications and select the strongest candidate, provided your selection is based on legitimate, non-discriminatory criteria and applied consistently.

Can I charge an application fee?

Under the RTA, landlords cannot charge fees for processing applications, showing units, or similar activities. Credit check costs must be absorbed by the landlord.