How to Avoid a Bad Tenant: Toronto Landlord Guide
Choosing the right tenant is one of the most important steps in a successful rental relationship. In Ontario, where the Residential Tenancies Act (RTA) provides strong protections for both tenants and landlords, it is especially important to ensure expectations, financials, and responsibilities are clearly aligned from the start.
The good news: most rental challenges are preventable with the right screening process.
This guide breaks down how to protect your property, follow Ontario laws, and attract a reliable, responsible tenant through a fair, legal, and objective process.
This guide focuses on legal, objective, and non discriminatory screening practices only. All tenant selection must comply with the Ontario Human Rights Code, Residential Tenancies Act, and privacy laws. Screening decisions must be based on verifiable financial and rental information, not personal characteristics.
1. Know What You Can and Cannot Collect Upfront
In Ontario, landlords can collect:
First month’s rent
Last month’s rent
A key deposit limited to replacement cost
Landlords cannot collect:
Damage deposits
Pet deposits
Security deposits
Additional months of rent beyond last month
Collecting illegal deposits can result in repayment orders and penalties through the Landlord and Tenant Board, even if done unintentionally.
2. Know What You Can and Cannot Ask
In Ontario, landlords can ask:
What your income is
If you work, and where you work
How many people will be living with you
The names of people who will be living with you
If you have pets
If you smoke
Permission to do a credit check (requiring full name, date of birth, current address)
References from past landlords
In some cases, if you have a guarantor or co signer
Landlords can decline a prospective tenant based on the answers to the above questions. For example:
Poor rental history (including rental arrears)
Having pets
Income that is not sufficient to cover the rent
Screening decisions must be based on a combination of income, rental history, references, and credit, not a single factor alone.
In Ontario, landlords cannot ask:
If you are pregnant or have children
If you plan to have children, or if you plan to have more children
If you are married, single, or divorced
Your religion or ethnic background
Your sexual orientation
If you get welfare or other public assistance
If you have a disability
Your age (even if you are 16 or 17 as long as you are living away from your parents)
If you are a Canadian citizen
A landlord must not discriminate against potential tenants.
3. Understand Rent Control Before You Price
Most Ontario rental units first occupied for residential purposes before November 15, 2018 are subject to rent control. This means future rent increases are capped by annual government guidelines.
Before setting your rental price, consider:
Is your unit rent controlled
What is the current guideline increase
How long do you plan to hold the property
What will your rent look like in three to five years
Underpricing limits long term income. Overpricing can hurt tenant retention.
4. Price Your Rental the Right Way
Pricing determines who you attract.
Too low: you may attract applicants who are not financially prepared
Too high: you reduce demand and increase vacancy risk
To find true market value, compare your unit to recently leased and currently listed rentals on MLS with similar:
Size
Layout
Condition
Parking
You can also cross check with rental websites, but leased data is the most accurate.
Best strategy: Once market value is confirmed, pricing slightly below it when possible typically:
Increases application volume
Improves applicant quality
Gives you more control during screening
5. Use a Full Rental Application (OREA Form 410)
Download here:
https://www.velosarealestate.ca/s/Ontario-410-Rental-Application-Residential-5-2.pdf
This ensures you collect:
Legal name
Rental history
Employment details
Income
References
Consent for credit checks
Store all information securely and follow privacy laws.
6. Run a Full Credit Check With Consent
Third party screening tools:
Look for:
650 plus credit score as a general guideline
Stable payment history
Reasonable debt levels
No unpaid landlord judgments
Credit is only one piece of the tenant profile.
7. Verify Employment and Income
Never rely solely on documents without verification.
Confirm:
Employer identity
Job type
Length of employment
Income range
Stability
This step plays a major role in preventing future payment issues.
8. Call Previous Landlords
Ask:
Was rent paid on time
Any issues during the tenancy
Was the property maintained
Did the tenant give proper notice
Would you rent to them again
This provides valuable insight into rental history.
9. Confirm Government ID
Drivers licence lookup:
https://www.dlc.rus.mto.gov.on.ca/dlc/
Confirm:
Name matches the application
Identity can be reasonably verified
Documents appear legitimate
Identity verification helps protect both parties from fraud.
10. Meet Applicants in Person
This step provides valuable context beyond paperwork.
You can legally evaluate:
Punctuality
Communication
Professionalism
Consistency of information
Clarity when answering questions
You cannot evaluate based on protected characteristics under the Human Rights Code.
11. Document the Move In Condition
Protect yourself from future disputes with:
Timestamped photos
Walkthrough videos
A signed move in checklist
This documentation becomes your reference if damage occurs later.
12. Set Communication and Maintenance Expectations Early
At move in, clearly define:
How maintenance requests are submitted
Emergency vs non emergency issues
Expected response times
Tenant and landlord responsibilities
Put this in writing to avoid misunderstandings.
13. Understand There Is Always Risk and Keep a Reserve Fund
Even excellent tenants can face unexpected life events.
Smart landlords keep at least three months of rent in reserve to cover:
Missed payments
Vacancies
Repairs
Legal costs
Landlord and Tenant Board delays
This protects your cash flow and peace of mind.
14. Serve Notices Properly for Non Payment
If rent is not paid in full, serve an N4 Notice immediately.
N4 Form:
https://tribunalsontario.ca/documents/ltb/Notices%20of%20Termination%20&%20Instructions/N4.pdf
This is not an eviction. It is the legally required first step to document arrears and preserve your rights.
Under the updated legislation (Bill 60), tenants now have 7 days to pay the full rent owing before a landlord can file an L1 Application to Evict for Non Payment of Rent with the Landlord and Tenant Board.
If full payment is not received within 7 days, the landlord may then file an L1 Application to Evict for Non Payment of Rent with the Landlord and Tenant Board.
Always confirm the current notice period and required forms with the Landlord and Tenant Board, as legislation and procedures can change.
15. List on MLS
Listing your property on MLS exposes your rental to a wider pool of qualified applicants. Many landlords choose to work with a realtor to assist with marketing, screening, and leasing from start to finish.
A professional realtor can help by:
Screening applications using consistent, objective criteria
Verifying employment, income, and references
Managing showings and pre screening inquiries
Preparing and reviewing the appropriate forms
Ensuring documentation is completed correctly
Marketing the rental properly across multiple platforms
Supporting compliance with the RTA and Human Rights Code
16. List Your Property 1 to 2 Months in Advance
Well prepared tenants plan ahead.
Listing early helps you:
Attract organized applicants
Create competition
Screen thoroughly
Avoid rushed decisions
Applicants seeking immediate move in are not automatically a concern, but their situation should always be clarified.
17. Prepare the Unit Professionally
Before listing:
Deep clean all surfaces, appliances, and filters
Repair minor issues such as leaks and caulking
Fresh paint if needed
Ensure all appliances and fixtures work properly
Use professional photography: https://www.winsold.com/#services
Write a clear description
Highlight what is included such as utilities, laundry, snow removal, and internet
Presentation attracts the right tenant.
18. Treat Your Rental Like a Business
Track:
Rent payments
Lease dates
Notices served
Expenses and repairs
Income and cash flow
Having a simple system or property management software prevents missed steps and protects you in disputes.
19. Know Your Rights and Tenant Rights
Residential Tenancies Act:
https://www.ontario.ca/laws/statute/06r17
Landlord and Tenant Board:
https://tribunalsontario.ca/ltb/
The Landlord and Tenant Board outlines:
Legal forms
Notice periods
Rent rules
Maintenance responsibilities
Dispute processes
Understanding the law prevents costly mistakes.
20. Use the Mandatory Ontario Standard Lease
This lease is mandatory for most private residential tenancies in Ontario and protects both parties.
Only include legal additional terms, such as:
Utility breakdown
Smoking rules
Maintenance expectations
Tenant insurance requirements
Key replacements
Lawn care and snow removal
Illegal clauses can be voided at the Landlord and Tenant Board.
When these steps are followed properly, you dramatically reduce risk and build a strong, long term rental relationship.
FINAL LEGAL DISCLAIMER
This guide is for general educational purposes only and does not constitute legal advice. Laws, regulations, and Landlord and Tenant Board procedures may change, including updates under Bill 60. Landlords and tenants should always confirm current rules with the Residential Tenancies Act, the Landlord and Tenant Board, or a licensed legal professional before acting on any specific situation.
This article is provided for general informational purposes only and is not intended as legal advice. The Residential Tenancies Act (RTA) and Landlord and Tenant Board (LTB) rules can change, and individual situations may require specific legal guidance. Always refer to the official Landlord and Tenant Board resources and consult a licensed legal professional or paralegal for advice regarding your particular circumstances. Andre Velosa and Velosa Real Estate do not assume liability for decisions made based on this information.
