Tenant screening is one of the most important steps in managing rental properties. However, landlords must ensure they comply with the legal framework surrounding the process. In Canada, tenant screening involves collecting information about potential renters while respecting their privacy and complying with human rights laws.
Do’s of Tenant Screening
1. Obtain Written Consent
Before conducting credit or background checks, landlords must obtain written consent from the prospective tenant. This consent allows landlords to request references, conduct credit checks, and verify income.
2. Request Relevant Information
Landlords are allowed to ask for certain information from tenants to assess their suitability for the rental. This includes:
- Proof of income (e.g., pay stubs or tax returns)
- Rental history (to check if they have been good tenants in the past)
- References from previous landlords
- Employment verification
Source:
3. Conducting Credit Checks
Credit checks are standard in Canada for assessing a tenant’s financial reliability. However, landlords must ensure they follow the Personal Information Protection and Electronic Documents Act (PIPEDA), which governs how personal data should be handled.
Don’ts of Tenant Screening
1. Avoid Discriminatory Questions
Landlords must be mindful not to ask questions that could be considered discriminatory under the Canadian Human Rights Act. This includes questions about race, religion, marital status, sexual orientation, or disabilities.
2. Don’t Request SIN
Asking for a Social Insurance Number (SIN) during the tenant screening process is illegal. It is unnecessary for determining a tenant’s eligibility and can infringe on privacy rights.
Best Practices for Tenant Screening
- Standardize Your Screening Process: Use consistent criteria to evaluate all applicants to avoid any perceptions of bias.
- Document the Process: Always keep records of the application process, including consent forms and the reasons for accepting or rejecting applicants.
By ensuring your tenant screening process complies with Canadian law, you can avoid legal issues while finding the right tenants for your property.