How to Legally Screen Tenants in Ontario: Credit Checks, Income, and the Human Rights Lines You Can’t Cross
You can pull credit, verify income, and ask for a guarantor — but one "rent must be under 30% of income" rule can land you at the Human Rights Tribunal.
What can an Ontario landlord legally ask for when screening a tenant, and what can’t they refuse on?
A landlord can require a rental application, references, proof of income, and — with written consent — a credit check. Under Ontario Regulation 290/98, a landlord may request income information only if they also request credit references and rental history, and must weigh income together with all the other information. But per the Ontario Human Rights Commission, using a rent-to-income ratio like a “rent must be under 30% of income” cut-off to refuse an applicant is illegal — and so is refusing on any Human Rights Code ground: race, family/marital status, receipt of social assistance, disability, age, and more.
Source: Ontario Human Rights Commission (ohrc.on.ca, 2026) / O. Reg. 290/98 / Landlord and Tenant Board (tribunalsontario.ca, 2026)
I’m Arthur Zhao. When I help landlord clients put a unit on the rental market, the question I hear most is: “What am I actually allowed to check on a tenant?” It’s the right question — because getting this line wrong can mean a complaint to the Human Rights Tribunal, with damages and remedies attached. The good news: Ontario’s rules are clear. You absolutely can do real due diligence — credit, income, references, a guarantor — as long as you apply the same standards to everyone and never screen on a protected identity. Here’s exactly what you can ask for, what you can never refuse on, and how to take deposits legally.
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The premise: screening is legal, discriminatory screening isn’t
Many landlords assume screening itself is risky. It isn’t. Ontario law allows reasonable due diligence — the question is never “do I check?” but what standard you apply, and whether it’s the same for everyone. According to the Ontario Human Rights Commission (ohrc.on.ca, 2026), as long as you apply the same tools (application, credit, income, references) fairly to every applicant and don’t use a protected identity to filter people out, screening is lawful. The reverse is where trouble starts: the moment your standard bends from person to person — an extra guarantor demanded of someone on social assistance, a second check run only on an applicant of a certain background — it can be discrimination, however “reasonable” it sounds. The test is consistency, not how much you dig.
What you can legally ask for: a standard rental application
• Name, current address, contact details
• Employment and income information (employer, position, proof of income)
• Current and former landlord references (rental history, payment record)
• Banking/credit-related information, and
• A credit check, run only with the applicant’s written consent
The key is that this form is the same version, with the same questions, for every applicant. Consistency is itself your best compliance evidence — if challenged later, you can show “I did this for everyone.”
Income information: you can ask, but you can’t gate on it alone
In practice: you can ask for pay stubs, an employment letter, or a tax return to confirm income is enough to pay the rent — that’s fully legal. What you can’t do is take a bare income figure, divorced from credit and rental history, and screen someone out on it. The one exception is rent-geared-to-income subsidized housing, where income alone may be assessed.
🚨Don’t use a “30% of income” rule as a cut-off. Per the Ontario Human Rights Commission, refusing on a rent-to-income ratio is illegal — you may only assess whether an applicant can afford this rent, not whether their leftover money is “enough” to live on. Roughly one-third of Ontarians pay over 30% of income on rent and still pay in full and on time.
The most dangerous line: don’t use a "30% of income" rule
Why? OHRC cites research that roughly one-third of Ontarians pay more than 30% of income on rent yet pay it in full and on time; that there’s no evidence social-assistance recipients default more often; and a 1997 Quebec study found 78% of defaulting tenants had a job. The ratio doesn’t predict default — it just systematically screens out lower-income, social-assistance, and single-parent applicants, which is why it’s treated as discriminatory.
💡 However complete an application is, if the reason you refuse lands on a protected identity, it’s illegal. Under Ontario’s Human Rights Code protections in housing, you cannot refuse or treat an applicant differently based on any of:
• Race, ancestry, place of origin, colour, ethnic origin, citizenship, creed (religion)
• Sex, sexual orientation, gender identity and expression
• Age, marital status, family status (e.g. having children)
• Disability
• Receipt of public assistance (social assistance)
That means you can’t screen someone out — or add extra hurdles — because they “have kids,” “just immigrated,” “live on ODSP/OW,” or “have a service animal.” In law, these identities have nothing to do with whether someone will be a good tenant.
Guarantors and co-signers: allowed, but the rule must be uniform
The compliant approach is to write the guarantor requirement as a standard that applies uniformly to every applicant — for example, “anyone with no verifiable Ontario rental history or credit record must provide a guarantor.” That screens on the objective fact of insufficient information, not on someone’s identity. Likewise, any income standard you place on the guarantor can’t be stricter than the one applied to the tenant.
🚨Collecting a “damage deposit,” security deposit, or pet deposit is illegal in Ontario. At move-in you may only take a rent deposit (max one month, usable only for the last month, annual interest owed) and a cost-based key deposit. Collect an illegal deposit and the tenant can apply to the LTB to recover it within one year.
Deposit rules: first and last are legal, damage deposits are not
• A rent deposit: no more than one month’s rent (or one week’s for a weekly tenancy), usable only as the last month’s rent — never for damage or other costs — and the landlord must pay the tenant annual interest at the rent-increase-guideline rate.
• A key deposit: no more than the actual cost to replace the keys/fobs, refundable when keys are returned.
The “last” in “first and last month’s rent” is exactly that legal rent deposit. Damage, security, and pet deposits are all prohibited — collect one and the tenant can apply to the LTB within one year to recover it.
ℹ️Most private residential leases signed on or after April 30, 2018 must use the Ontario Standard Lease (Form 2229E). If the landlord doesn’t provide it, the tenant can request it in writing and the landlord must supply it within 21 days — or the tenant may, under certain conditions, withhold one month’s rent.
Sign on the Ontario Standard Lease (Form 2229E)
The standard lease sets out rent, deposit rules, and both parties’ responsibilities in one format — and it’s a layer of compliance in itself, since it won’t let you write in terms that break the RTA (like a damage deposit). If a landlord doesn’t provide the standard lease at signing, the tenant can request it in writing, and the landlord must supply it within 21 days — or the tenant may, under certain conditions, withhold one month’s rent. Don’t skip it.
A compliant screening checklist to run
Turned into a repeatable process, here’s the standard sequence I give landlord clients:
• One application: every applicant fills the same version (e.g. OREA Form 410)
• Written consent before running any credit check
• Verify income with pay stubs / employment letter / tax return — but only judge “can they afford this rent,” never a 30% ratio
• Call references: current and previous landlords, plus the employer
• Assess holistically: weigh income, credit, and rental history together, not one alone
• Uniform guarantor rule: required only for “insufficient information,” never for identity
• Document everything: keep a record that you did the same thing for every applicant — that’s your protection if a complaint is filed
This article is educational; confirm your specific situation with your real estate professional and legal counsel, and rely on the current government rules.
Frequently Asked Questions
Can an Ontario landlord check a tenant’s credit?
Yes, but only with the tenant’s written consent. Under Ontario Regulation 290/98, a landlord screening applicants may request a credit check, credit references, rental history, and income information. The key is that these tools are applied the same way to every applicant and weighed together — not used to single out anyone protected by the Human Rights Code.
Can a landlord refuse a tenant using a "rent under 30% of income" rule?
No. According to the Ontario Human Rights Commission (ohrc.on.ca, 2026), using a rent-to-income ratio (like a 30% cut-off) as a refusal standard is illegal. A landlord may only assess whether an applicant has enough income to pay the rent, not whether their remaining income is adequate for other expenses. The only exception is rent-geared-to-income subsidized housing.
Can a landlord collect a damage deposit in Ontario?
No. Under the Residential Tenancies Act and the Landlord and Tenant Board (2026), damage deposits, security deposits, and pet deposits are all illegal in Ontario. At move-in a landlord may collect only a rent deposit (max one month, used only for the last month’s rent, with annual interest at the rent-increase-guideline rate) and a key deposit no greater than the actual replacement cost.
A tenant is on social assistance (ODSP/OW) — can I refuse them for that?
No. Receipt of public assistance is a ground expressly protected by Ontario’s Human Rights Code in housing. A landlord cannot refuse, treat differently, or add extra requirements (like a guarantor) because an applicant lives on ODSP, OW, or similar assistance. You can still run the same credit and rental-history assessment on all applicants consistently.
When can I require a guarantor or co-signer?
When an applicant lacks verifiable credit or rental history (e.g. newcomers, students, recent grads), requiring a guarantor is legal. But per the Ontario Human Rights Commission, you cannot require one just because the applicant belongs to a protected group (on social assistance, a newcomer). The requirement must be written as a standard that applies uniformly to everyone.
Arthur Zhao
Real Estate Broker · FRI · ABR · SRS · PSA · MCNE · E-PRO · CLHMS & GUILD Elite · REAIS
VP & Branch Manager, Bay Street Group Inc.
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