Tenant selection can make or break your rental property investment. A great tenant pays rent on time, cares for the property, and respects the lease. But the wrong tenant can lead to late payments, property damage, or even costly evictions. Many landlords—especially new ones—make avoidable mistakes during the screening process. Let’s break down the most common pitfalls and how to steer clear of them.
1. Skipping a Proper Screening Process
The mistake: Accepting the first applicant who shows interest without verifying financial stability or rental history.
The solution: Always conduct credit checks, verify employment, and call previous landlords. A structured process reduces the chance of surprises later.
2. Relying Only on Gut Instinct
The mistake: Choosing a tenant based on friendliness or appearance.
The solution: Use objective criteria like income-to-rent ratio, references, and payment history. While impressions matter, data-driven decisions are safer.
3. Failing to Verify Employment and Income
The mistake: Accepting a pay stub or verbal assurance without cross-checking.
The solution: Request an employment letter, multiple recent pay stubs, or bank statements. Confirm directly with the employer when possible.
4. Overlooking Rental History
The mistake: Not contacting previous landlords to confirm tenant reliability.
The solution: Speak directly with at least one past landlord. Ask about payment history, property care, and whether they’d rent to this tenant again.
5. Ignoring Red Flags
The mistake: Overlooking gaps in employment, inconsistent information, or negative references.
The solution: Address inconsistencies directly with the applicant. If answers don’t add up, consider it a warning sign.
6. Not Using a Standard Lease Agreement
The mistake: Relying on informal or outdated lease templates.
The solution: In Ontario, always use the government’s standard lease form. This ensures compliance with the Residential Tenancies Act and protects both parties.
7. Rushing the Process
The mistake: Accepting an applicant too quickly to fill a vacancy.
The solution: Take your time. A few extra days of vacancy are worth it if it means finding the right tenant.
Final Summary
The best landlords know that patience and process pay off. By avoiding shortcuts—like skipping screening or relying on gut instinct—you’ll set yourself up for fewer disputes, more reliable tenants, and a healthier rental business. Screening carefully today prevents costly mistakes tomorrow.
Frequently Asked Questions
1. What is the most common action taken by landlords against tenants in breach of contract?
The most common action is filing for eviction through the Landlord and Tenant Board, usually due to non-payment of rent or lease violations.
2. Why would a rental application be rejected?
Applications may be rejected for poor credit history, insufficient income, unverifiable employment, negative landlord references, or incomplete/misleading information.
3. What's the most you can sue your landlord for?
In Ontario, tenant claims are typically handled by the Landlord and Tenant Board, which has limits on monetary compensation. For larger claims, tenants may need to go through Small Claims Court (up to $35,000) or Superior Court for higher amounts.
4. Can a landlord deduct a deposit for cleaning?
In Ontario, landlords cannot charge or deduct a “cleaning deposit.” The only legal deposit is a rent deposit (usually last month’s rent). Cleaning costs must generally be covered by the landlord unless damage goes beyond normal wear and tear.
5. What is the most a landlord can charge for damages?
Landlords can recover the actual cost of repairing damages caused by tenants beyond normal wear and tear. There is no fixed maximum, but charges must be reasonable and supported by receipts or invoices.
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