As a property owner or landlord, one of the most crucial decisions you’ll make is choosing the right tenants for your rental property. A thorough tenant screening process is essential to ensure you find reliable and responsible renters who will treat your property with care and pay their rent on time. In this blog post, we will explore the best practices for tenant screening that will help you minimize risks, avoid potential problems, and foster a positive and mutually beneficial landlord-tenant relationship.
Create a Clear Rental Criteria
Before you start the tenant screening process, establish clear rental criteria that outline the qualities and qualifications you seek in potential renters. These criteria may include a minimum credit score, stable income requirements, rental history, and references from previous landlords. Having these guidelines in place will help you stay consistent and objective when evaluating applicants.
Use a Rental Application Form
A standardized rental application form can help streamline the tenant screening process. Request essential information, such as personal details, employment history, rental history, and references. Make sure the application includes a clause authorizing you to conduct background and credit checks.
Conduct Comprehensive Credit Checks
Conducting thorough credit checks for all applicants is crucial for tenant screening. Check the applicant’s credit history to assess their financial responsibility and whether they have a history of paying bills on time. A comprehensive background check will give you a more accurate picture of the applicant’s reliability and trustworthiness.The two most widely recognized agencies are TransUnion and Equifax. Note, like all credit-reporting agencies, TransUnion and Equifax use proprietary scoring models. Credit-scoring models can differ and produce different scores.. And while credit scores are typically based on the same or similar factors — including payment history and number of accounts in good standing — each credit-scoring model can weigh those factors differently.
Verify Income and Employment
Verifying an applicant’s income and employment status is essential to ensure they can afford the rent. Request pay stubs, bank statements, or employment verification letters to confirm their ability to meet their financial obligations. Don’t be afraid to call an applicant’s employer to confirm they work there and are not at risk of losing their job.
Check Rental History
Contact the applicant’s previous landlords to inquire about their rental history. Ask about their payment history, behavior as a tenant, and if they left the property in good condition. A history of late payments, property damage, or tenant disputes may be red flags that warrant further consideration. Your goal should be to contact 2 previous landlords. If the
Check for Previous Evictions
Visit Canlii.org and Open Room and conduct a search of the applicant’s names.
CanLII stands for The Canadian Legal Information Institute. The CanLII.org website provides access to court judgments from all Canadian courts, including the Supreme Court of Canada, federal courts, and the courts in all Canada’s provinces and territories.
Openroom is where you can view crowdsourced Court Orders and Filed Applications to vet prospective Landlords or Tenants.
Social Media
In today’s age on online social media platforms, viewing an individual’s online presence can be a good indicator of their interests,
Go with The Gut
Meeting the applicant in person is an important and often undervalued step in the process. By meeting an applicant in person you can see a snapshot of them and their personality. Did they show up on time? Did they dress professionally or like they just rolled out of bed? Are they asking good questions about the rental? Are they polite and pleasant to talk with? At the end of the day if you don’t get a good feeling from them its best to trust your gut and keep looking.
Beware of Discrimination
When screening potential tenants, it’s crucial to abide by the Ontario Human Rights Code and avoid any form of discrimination. Do not base your decisions on factors like race, ethnicity, gender, religion, disability, or family status. Treat all applicants equally and fairly, solely based on their qualifications and rental history.
Conclusion
Finding reliable and responsible renters through a thorough tenant screening process is vital for the success of your rental property. By setting clear rental criteria, conducting comprehensive background checks, verifying income and rental history, and maintaining open communication with applicants, you can significantly reduce the risks associated with renting out your property. Remember to follow the Ontario Human Rights Code and treat all applicants with respect and fairness. By following these best practices, you can increase the chances of finding tenants who will not only take care of your property but also contribute to a positive and harmonious rental experience.
