Landlord & Tenant
Screening New Tenants
Before signing a lease agreement, it's important to make sure you understand what deposits you'll need to pay and when they'll be returned to you. Make sure you read the lease agreement carefully and ask questions if you're unsure about something.
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Screening New Tenants
It is important for landlords to screen potential tenants before renting out residential rental housing. Cordaie Paralegal Services can be a great asset when it comes to screening and selecting tenants for rental properties.
In Ontario, landlords have certain rules and regulations to follow when it comes to screening tenants. This includes ensuring that the rental unit is safe and secure, verifying the tenant’s identity, and documenting the rental agreement. Our team can help landlords understand and comply with these regulations.
We can help landlords to conduct criminal background checks on prospective tenants. This includes checking the tenant’s criminal record and any other pertinent information that could be relevant to the rental agreement. Our paralegals can also provide advice on how to properly document the rental agreement, as well as ensure that the agreement meets all legal requirements.
Another way we can help a landlord is by providing advice on how to handle any disputes that may arise with the tenant. This includes providing advice on how to handle late rent payments, damage to the property, or other issues that may arise during the tenancy. We can also help landlords understand their rights and responsibilities as it relates to the rental agreement.
Finally, our team can help landlords protect themselves from potential legal liability. By understanding and complying with the relevant laws, a landlord can reduce their risk of being sued by a tenant or other third-party.
In summary, Cordaie Paralegal Services is a great asset for landlords when it comes to screening and selecting tenants for residential rental housing in Ontario. Our paralegals can provide landlords with valuable advice and assistance when it comes to conducting criminal background checks, documenting rental agreements, and handling disputes. Additionally, we can help landlords understand and comply with relevant laws, and protect themselves from potential legal liability.
Discover more with a free consultation at 844-4-WIN-4-ME.
You May Be Breaking the Law
The landlord may request a background check as part of the application process, but one must be aware of the legal restrictions. Landlords are permitted to inquire about your income, renting history, landlord references, and credit report per the Human Rights Code. Do not be concerned if you lack a rental or credit history. Landlords are prohibited from using this against you, according to the Code.
These laws pertain to everyone you engage to conduct the background check, not just you personally (e.g. a professional company). You are only permitted to inquire about the names of the residents, not how many children will be residing there.
To complete a background check, you may lawfully request either a date of birth or a Social Insurance Number (but not both). Additionally up to the applicant's discretion are the licence numbers. You are not permitted to impose it.
According to the Ontario Human Rights Code, requesting a criminal background check from tenants may be discriminatory in some situations, but it may also be reasonable in others. For safety reasons, a senior renting out a room in their house might demand a criminal history check. However, they would still need the consent of potential tenants to do the check.
Credit checks can only be used to a certain extent. According to the legislation, discrimination occurs when potential tenants' past financial histories are used against them in a way that develops "systemic barriers" or targets particular individuals.
In other words, you must obtain express written approval if you or someone else plans to perform a background check that deviates from the generally approved databases. Criminal histories, court rulings, prior evictions, social media profiles, public biographies, previous work, and more are included.
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Tenant Screening
Some information you should know about screening new tenants.
Information You Can and Cannot Ask a Tenant
Questions That Landlords Can Ask
Renting a house or apartment usually requires a potential tenant to fill out an application or provide some information. If you are considering renting to someone, you can ask them:
- How much do they earn?
- Their employment status, as well as where they work
- The number of people who will live with them
- Names of people who will live with them
- Pets if they have them
- Whether they smoke or not
- Obtaining permission to conduct a credit check
- Past landlord references
- A guarantor or co-signer may be required in some cases
Questions Cannot Be Asked by Landlords
Landlords cannot ask questions that could be used to discriminate against tenants. Discrimination may result if you ask any of these questions or refuse to rent to them based on their answers.
You Cannot Ask, for Example:
- Whether they are pregnant or have children
- When they plan to have children, or when they plan to have more children
- Whether they are married, single, or divorced
- Religion or ethnicity
- Sexual orientation
- Whether or not they receive public assistance
- If they have a disability
- The age of the person (even if they are 16 or 17)
- If they are a Canadian citizen
Credit Checks on Tenants
You will probably want to do a credit check before renting to a tenant to make sure they pay their bills on time. There is a difference between having a poor credit history and having no credit history. It is common for young people or newcomers to Canada to have little or no Canadian credit history. Discrimination could occur if you refuse to rent to a tenant for this reason.
Checking a tenant's credit requires written permission. This permission is usually included in the rental application.
You will need the following information to do a credit check on an applicant:
- Name in full
- Current address
- Social Insurance Number (SIN) or date of birth
- During the credit check, they can voluntarily provide you with their date of birth
It is not a requirement for them to give you their SIN. You will need either their date of birth or their SIN to run a credit check on them. You should inform them how you will protect their records if they choose to give their SIN.
Guarantors
Generally, a guarantor is someone who promises the landlord they will pay the rent if the tenant stops paying. It may be referred to as a "co-signer" since they also sign the lease. Often, guarantors are parents, family members, or close friends.
If a tenant has unreliable references, poor credit history, or no history of paying rent, you can ask for a guarantor. Guarantors cannot be requested for discriminatory reasons.
As an example, you cannot ask for a guarantee based solely on the following reasons:
- It's a single-parent family
- A newcomer to Canada
- The person has a disability
- OW or ODSP is their source of income
- They're young (at least 18 or 16 and living on their own)
Potential tenants will sometimes be told by the potential landlord that they will not be able to rent from them, or that they will have to have a guarantor. Say, for example, that their rent cannot exceed 30 percent of their income. Renting to them would not be permissible if their income is below $6,300 per month ($75,600 per year). It is often referred to as the rent-to-income ratio.
Using a rent-to-income ratio as a reason to refuse a potential tenant or require a guarantor could be discrimination. As a landlord, you can consider their income, but you must also consider other factors that could indicate whether they will be a reliable tenant. A reliable reference from a previous landlord or a positive rental payment history may show they can afford the rent even if their rent-to-income ratio is higher than what you think is acceptable.
Discrimination & The Human Rights Code
Landlords cannot discriminate against renters under the Ontario Human Rights Code.
It is illegal for landlords to ask questions that could lead to discrimination against tenants. The landlord is also prohibited from requesting Canadian references or utilizing rent-to-income ratios in ways that discriminate against specific groups.
All of these activities violate the Human Rights Code, so you need to stop doing them immediately. Our staff are happy to provide you with more information about the Human Rights Code. A guide for landlords is available from the Ontario Human Rights Commission (OHRC). The Canadian Centre for Housing Rights (CCHR) publishes many publications explaining the law regarding housing discrimination.
Someone might contact you on behalf of a tenant who has experienced discrimination from you. A representative of CCHR or the Human Rights Legal Support Centre (HRLSC) may be in touch with you.
All rental applications and correspondence with potential tenants should be kept. Keep a record of everything you discuss with them and everything else that happens. Take a friend or another person with you when you meet potential tenants. That person can be a witness to the events or the words that were said.
In case a complaint is brought against you, all of these things must be kept even if you rent the place to another applicant. A complaint can be filed with the OHRC up to one year after the event. Discrimination is something that needs to be taken seriously. Depending on the outcome of the hearing, the Tribunal can issue a variety of orders. A court may order you to rent to a potential tenant, for example. It could also order you to change your policies regarding tenant selection or to attend a discrimination education course. In the case of non-respect of the applicant's human rights, the Tribunal may compel you to pay compensation.
Rental Agreements - What Should Be Included
A landlord's (and tenant's) rights and responsibilities are set by Ontario law, not by the rental agreement.
Some things must be included in every rental agreement, even if you and the tenant don't include them. It doesn't matter if the rental agreement didn't mention repairs or maintenance.
Tenancy agreements are also prohibited by law from containing certain items. The tenant is not required to comply with the terms of the rental agreement, even if they are written in it. A rule prohibiting pets is one example.
The law, however, leaves some decisions up to you and your tenant.
Among Them Are:
- What the amount of rent you will charge?
- If services and facilities are included in the rent
- The date of your move-in
- The lease expiration date (fixed-term tenancy)
The government's Standard Lease form is required for most tenancy agreements made after April 30, 2018. It includes what the law says you must agree, as well as space for you and your tenant to make additional agreements.
Having an agreement in writing is a wise idea even when the law does not require it. By putting it in writing, you and your tenant can make sure you cover all the points.
It can be helpful to have a written agreement if you and your tenant disagree later on. Landlord and Tenant Board (LTB) cases are easier to prove if you have a written agreement with your tenant.
Landlords of care homes are required to provide written agreements. Although it does not have to be on the Standard Lease form, there are other requirements. Detailed information about this can be found elsewhere on our website.
Rental Agreements - What Should Not Be Included
Understanding what may and may not be included in a rental agreement is important before you sign it. The inclusion of certain terms is not permitted. Even if your tenant signs your rental agreement, you cannot force them to follow any of these terms.
Rental Agreements Should Not Include:
- Except as outlined in the condominium bylaws, pets are prohibited
- Late rent payments or breaking the landlord's rules can lead to penalties
- Children, pets, and visitors may incur extra fees
- Post-dated checks or damage deposits are required
- Tenants are responsible for maintenance and repairs
Term Inclusions:
All rental agreements include the following terms, even if they don't explicitly state them:
- It is the tenant's right to live in their place as long as they want unless there is a legal reason to evict them
- In addition to the right to privacy, tenants have the right to treat their place as their home
- In buildings or complexes with more than one rental unit, tenants are entitled to use common areas (e.g. hallways, elevators, driveways, lobbies, and grounds)
- As a landlord, you are responsible for maintenance, repairs, and compliance with all housing laws
- When raising your rent, you must follow the legal rules
Give a Written Copy of the Lease or Face Penalties
A tenant might sign an application or a rental agreement before the landlord does. It might need to be signed by another person or office. Within 21 days after the tenant signs the agreement, the landlord must give them a copy.
The landlord's legal name and address must appear on the agreement. If the rental agreement does not contain this information, the landlord must give this information to the tenant in writing after the start of the tenancy.
If the landlord fails to provide the tenant with a copy of the tenancy agreement or their legal name and address within 21 days, they can refuse to pay your rent. The tenant must pay the rent immediately after receiving the agreement. If they do not make payment, the landlord can apply to the Landlord and Tenant Board (LTB) to evict them.
Standard Lease Form - Required
Landlords who sign tenancy agreements after April 30, 2018, must use a standard lease form. Rental agreements must be in writing for landlords to rent a property. It should be written on the Standard Lease form. The tenant cannot force the landlord to use the standard lease form. However, if they do not, they lose certain rights.
The landlord and the tenant must all sign the lease before the tenant moves in. Once the tenant signs and gives the landlord a copy, the landlord must provide that signed copy to them within 21 days.
The landlord can still give you a lease on the Standard Lease form if a tenant previously signed a tenancy agreement that isn't on the Standard Lease form. This is true even if they make a verbal or unwritten agreement with the landlord.
Landlord Refuses to Provide Standard Lease:
- Still, you won't give them a Standard Lease, or
- A Standard Lease is given to the landlord, but they refuse to sign it.
Only tenancy agreements made after April 30, 2018, are eligible for these rights. If a tenant makes this written request for the same rental unit for the first time, they will be entitled to these rights.
If 21 days have passed since the tenant asked for a Standard Lease in writing, and the landlord still hasn't provided it, they are allowed to hold back rent. Rent can only be held back for 21 days. One month's rent is the maximum amount they can hold back. Within 30 days after the first payment they held back, the landlord must give them a Standard Lease to sign. They can keep the money they hold back if the landlord doesn't give them a Standard Lease within 30 days. The rest of the rent must be paid, however.
Standard Lease Form - Not Required
Tenancy agreements made on or after April 30, 2018, must use the government's Standard Lease form. You cannot be forced to use the Standard Lease form by your tenants. If you don't, the law gives them certain rights.
The standard lease is not required in the following places:
- Renting a place for a business
- Housing that is public or subsidized
- Homes on land lease or mobile homes
- Cooperative housing
- Subleasing
- Care homes (e.g. retirement homes)
Care Homes
Landlords of care homes must provide tenants with a Care Home Information Package (CHIP) before they sign tenancy agreements. CHIP includes information about the home, meals, and services.
A tenancy agreement must state that tenants have five days after signing it to cancel the agreement.
Applicants to the Landlord and Tenant Board (LTB) can apply if you, the landlord, didn't give them a written tenancy agreement listing what services and meals they will receive and what they will be charged for. The LTB can order you to return some of your rent.
The tenant cannot be charged for meals or care services if they have not received CHIP.
Rent
The first time you rent out a property, you and the tenant agree on a rent amount. Rent can be set at any amount you both agree on.
The following items may be included in your rent:
- Electricity
- Cable
- Parking
- Cleaning
- Meals
The rental agreement or lease should clearly state what is included and what is not.
If the lease was signed after April 30, 2018, landlords must use the government's Standard Lease form. Rent can be held back by tenants if you do not provide them with a Standard Lease.
Future Rent Increases
Generally, you must wait a year before raising rents and give 90 days' notice. It is usually prohibited to increase the rent more than the government's "guideline" percentage. You should find out if your rental unit is covered by the guideline. Afterwards, if it is not covered, you can raise the rent as much as you want.
Deposits
There are only two kinds of deposit you are allowed to ask for when you rent out a place:
- Rent deposit
- Key deposit
A rent deposit cannot be more than one month's rent on a yearly or month-to-month rental, or one week's rent on a weekly rental. The deposit must be used for the tenant's final period of rent. It cannot be used for damage or other costs. A rent deposit is sometimes called a security deposit or a last month's rent deposit (LMR).
A key deposit cannot be more than the actual cost to replace the keys. If the tenant returns the keys when they move out, you must give back the deposit.
If the tenant wants extra keys, you can charge for the cost of making the extra keys. Instead of keys, the building might use entry cards, fobs, or other devices. The rules for these things are the same as for keys.
Illegal Deposits
You cannot ask for any other type of deposit, including:
- Pet deposit
- Damage deposits
- Any deposit amount that is more than a last month's or last week's rent
- Post-dated cheques or any other kind of pre-authorized payment
- A key deposit that is more than what it would cost to replace the keys
Interest On Deposits
Each year, you must pay interest on the deposits. Interest is extra money to make up for the fact that the tenant can't use their money because you are holding it as a deposit.
The interest rate is equal to the guideline rent increase for the year in which the interest payment is due. For example, if the tenant paid a last month's rent deposit on May 1, 2016, you must have paid them interest on May 1, 2017. The rent guideline for 2017 was 1.5 percent, so you owed the tenant 1.5 percent interest on their deposit. A year after that, you must have paid the tenant 1.8 percent interest, because the rent guideline for 2018 was 1.8 percent.
You pay the interest by giving it to them directly or by adding it to their deposit. If you do not do this, they can deduct it from their next rent payment or apply to the Landlord and Tenant Board (LTB) to make you pay it.
Illegal Reasons for Rejection
Renting a unit cannot be refused to a tenant with children, who is pregnant or might be pregnant. These forms of discrimination, as well as many others, are protected by the Ontario Human Rights Code. Additionally, you cannot ask questions or advertise in a discriminatory manner.
For example, landlords must not:
- Describe a building as "adult-only" or "adult lifestyle"
- Describe a unit as "suitable for young professionals"
- Families with children will only be shown certain units or floors
Exceptions Do Exist
A landlord may refuse to rent to anyone who shares a kitchen or bathroom with them or their family for any reason. Human Rights Code exceptions can also be granted to people with disabilities and seniors.
Clause Prohibiting Pets
It is legal to ask a potential tenant if they have pets before they move in. It is also possible to deny a pet owner's rental application. Tenants cannot be evicted for having pets after moving in, even if the rental agreement prohibits them. No-pet clauses are illegal in Ontario rental agreements and makes that part of the agreement void. Therefore, they cannot be enforced.
Your landlord can make you get rid of your pet if:
- It is unreasonably loud
- As a result, allergies develop
- Posing a threat
- It is destructive
- It is prohibited by condominium or city bylaws.
Country of Origin or Immigration Status
In Ontario, landlords cannot refuse to rent to someone because of their:
- Race, ethnicity, or colour
- Citizenship or country of origin
- Religion
- Age (if they are at least 18, or if they are 16 or 17 and not living with a parent)
- Gender, sexual orientation, gender identity, or gender expression
- Disabilities
- Relationship status
Because they are:
- Pregnant
- Parents of children
- Social assistance recipients
- A discriminatory practice
Here are some examples:
- You do not rent to people from a certain country. Due to their birthplace, they are discriminated against
- Since they are a refugee claimant, you refuse to rent to them for fear of deportation. They are discriminated against because of their immigration status.
- At the entrance of a building, stairs are the only way in or out. Because of this, a wheelchair user who needs a ramp instead of stairs can be treated unequally
- Your rental policy prohibits tenants without Canadian references or credit histories. It is possible to discriminate against tenants who are new to Canada and have not built up a credit history or been employed.
If you intend to discriminate, you are prohibited from doing so under the law. You should accommodate your tenant as long as you do not suffer undue hardship. To determine whether a newcomer would make a reliable tenant without a credit report, you can examine their income.
Frequently Asked Questions
Here are answers to some common questions.