5 Red Flags When Screening Tenants (And How to Handle Them)

A bad tenant can cost you $15,000, six months of legal headaches, and a property that needs serious repairs. The good news? Most bad tenants announce themselves during the application process — if you know what to watch for.

After years of managing properties in London, St. Thomas, and Strathroy, here are the five red flags we never ignore.

1. Urgency Without Explanation

The pattern: "I need to move in this week" or "Can I skip the application and just give you a deposit right now?"

Legitimate tenants can usually give you reasonable notice before their move-in. When someone is in a rush with no clear explanation, there's often a reason — they were just given an eviction notice, they had a falling out with their current landlord, or they haven't been honest about their situation.

What to do: It's fine to be flexible on move-in dates for the right tenant. But don't skip your screening process because of their urgency. That pressure is theirs to manage, not yours.

2. Incomplete or Inconsistent Employment Information

The pattern: The application says "self-employed" but they can't provide bank statements. Or their stated income doesn't match their Notice of Assessment. Or they list a job title but can't provide an employer contact.

The standard rule: a tenant's gross monthly income should be at least 2.5–3x the monthly rent. For a $1,800/month unit, that's $4,500–$5,400/month — or about $54,000–$65,000/year.

What to do: Ask for a recent pay stub, bank statement showing regular deposits, or a letter of employment. Self-employed tenants should provide two years of tax returns or NOA documents. No documentation? No lease.

3. Resistance to Reference Checks

The pattern: "My previous landlord isn't available." "We left on bad terms so I'd rather not use them." "I've been renting from family."

Past landlords are your best predictor of future behavior. If an applicant can't or won't provide contact information for their previous landlords, that's a serious signal.

What to do: Require at least two landlord references. When you call, ask specific questions:

• Did they pay rent on time?
• Did they give proper notice when they left?
• Would you rent to them again?
• Did they leave the unit in good condition?

That last question is the most telling. A hesitant "yes" is often a no.

4. Credit Score Below 620 With No Explanation

The pattern: Low credit score with no context.

Credit under 620 doesn't automatically disqualify someone — life happens, and people recover. But the difference is whether the applicant can explain it honestly and demonstrate their current situation has improved.

Medical debt, a divorce, a job loss a few years ago — these are understandable. A pattern of unpaid bills and collection accounts with no explanation is different.

What to do: If credit is a concern, ask open-ended questions: "Is there anything on your credit report we should know about?" A good tenant will be honest. You can also offset credit risk by asking for a larger deposit (within Ontario's rules — maximum first and last month's rent).

5. Wanting to Add "One More Person" After the Application

The pattern: They apply alone or as a couple, sign the lease — and then mention a third person will be living there "temporarily."

Unauthorized occupants are a risk in several ways: more wear on the unit, potential subletting issues, and if the lease-holder leaves, you may have someone living there you never screened.

What to do: Make it clear upfront that everyone who will be living in the unit full-time must be on the lease application. Have a clause in your lease about occupancy limits and unauthorized occupants.

The Screening Process We Use

At Prospera Properties, every applicant goes through:

1. Full credit check (with applicant consent)
2. Income verification — pay stubs, employer letter, or NOA for self-employed
3. Two landlord references — we call both, every time
4. Employment verification — employer name, address, and HR contact
5. Criminal background check (where legally permissible in Ontario)

We document everything and keep records in case of future disputes.

Frequently Asked Questions

What income standard should Ontario landlords use when screening tenants?

A common benchmark is that a tenant's gross monthly income should be at least 2.5–3x the monthly rent. For a $1,800/month unit, that's approximately $4,500–$5,400/month in gross income. For self-employed applicants or those with variable income, ask for two years of tax returns or Notices of Assessment to establish a reliable income picture.

Can an Ontario landlord refuse to rent to someone because of a low credit score?

You can consider credit history as part of your screening, but you cannot refuse based on protected grounds under the Ontario Human Rights Code. A credit score below 620 is a relevant factor — but context matters. An applicant who can explain a low score (medical debt, past hardship) and demonstrate recovery is different from someone with an unexplained pattern of unpaid accounts. Document your reasons if you decline an applicant.

What questions should a landlord ask when calling a previous landlord as a reference?

Ask: Did they pay rent on time? Did they give proper notice when leaving? Would you rent to them again? Did they leave the unit in good condition? That last question is the most revealing — a hesitant "yes" is often a no. Call references directly rather than accepting written letters, and verify the phone number independently to confirm you're reaching an actual previous landlord.

Can a landlord run a credit check on a rental applicant in Ontario?

Yes, with the applicant's written consent. Under Ontario's privacy legislation, you need written permission before pulling a credit report. Include a credit check consent form as part of your rental application. Reputable screening services like Equifax or TransUnion provide landlord-specific products for this purpose.

Is it legal in Ontario to ask a rental applicant about their immigration status or citizenship?

No. Under the Ontario Human Rights Code, citizenship and immigration status are protected grounds. You cannot ask about these during the screening process or use them as a basis for refusing to rent. You may ask for government-issued ID to verify identity, but must treat all applicants equally regardless of their citizenship or immigration status.

The Bottom Line

The time you spend screening is directly proportional to the time you don't spend filing LTB applications. A thorough 2-hour screening process protects you from a potential 6-month nightmare. Pair your screening with a solid lease agreement and a thorough move-in inspection to protect your investment from day one.

If you'd rather not manage this yourself, we handle the entire process — and we stand behind our tenant selections.