Quick Guide to Effective Tenant Screening in Ottawa, ON

Quick Guide to Effective Tenant Screening in Ottawa, ON

The city of Ottawa is one of the best places to live in Canada. After all, it’s the capital of the country. Plus, it’s located in the country's most populous province, Ontario. 

Its beautiful landscapes, strong local economy, and modern amenities make Ottawa an attractive destination for tourists, residents, and investors alike. As a result, there is a growing demand for rental properties in the city.

 

If you’re thinking about renting out a property in Ottawa, it’s important to know the potential risks you may face. The biggest challenge you may face is unsuitable tenants. 

Choosing the wrong renters can result in serious property damage, loss of rental income, holdover tenancies, and legal disputes. The only way to avoid this is by screening all potential tenants. 

 

An effective tenant screening process can go a long way in keeping your investment protected. In this article, the experts at Rent In Ottawa Property Management will tell you everything you should know to effectively screen applicants and weed out problematic renters. Keep reading to learn more!

 

Things You Should Know before Screening Tenants in Ottawa, Ontario

Rental laws govern what you can and cannot do as a landlord. Before you can start screening potential tenants, you must familiarize yourself with your local landlord-tenant laws. Here are some of the basic laws you should keep in mind regarding the screening process: 

• The Personal Information Protection and Electronic Documents Act (PIPEDA). This federal law governs the collection, use, and disclosure of personal information by organizations in the course of commercial activities, including rental agreements. Because of this, landlords are required to obtain consent to collect, use, and disclose tenants’ personal information. This includes background and credit checks.

• Human Rights Code. This code ensures that all individuals are protected from discrimination when buying or renting a property. Landlords are prohibited from using such information as race, sexual orientation, age, religion, and disability in making decisions on tenants.

 

In order to comply with these laws, you must always get applicants’ written consent before running any background, credit, or income checks. 

Plus, you must abstain from requesting personal information such as race, gender, sexual orientation, religion, or other protected personal information under the Ontario Human Rights Code. 

You should be careful when dealing with tenants’ personal information to comply with privacy laws.

 

While not legally required, it’s a good idea to be transparent with tenants about the screening process. Let them know from the start what to expect and what findings or criteria will play a role in your decision. This sets the foundation for a good landlord-tenant relationship and prevents possible misunderstandings.

 

How to Screen Tenants in Five Simple Steps

The tenant screening process may seem daunting or overwhelming but doesn’t have to be that way! Here are some tips and best practices to help you:

 

Determine Your Screening Criteria

Before you can start screening applicants, you must ask yourself what you’re looking for in a tenant. Basic criteria can include:

• Has the means to pay rent

• Has a stable source of income

• Has a good credit score

• Doesn’t have a criminal record

• Hasn’t been evicted from a rental unit before

• Doesn’t have pets

 

The specifics will change depending on the unique qualities of your rental and your expectations. By setting clear standards from the beginning, you won’t waste your time on applicants who don’t meet your basic requirements. 

Have Tenants Fill Out an Application Form

Many people may show interest in renting your property, but not all will be suitable tenants. Having them fill out an application form can save time. 

This form can be digital for online inquiries or physical after property showings. It should collect basic details like names, address, contact info, income, credit score, and rental history. 

This will help you assess if they’re a good fit. It’s also the ideal time to request their consent for background and credit checks.

 

Request Necessary Documents

If you think an applicant would make a good tenant based on their application form, then you can move on with the screening process. 

The next step would be to request more detailed information, such as proof of income (pay stubs or tax returns), a government-issued ID, information about their current employer, and contact information of former landlords and other references.

 

Conduct the Necessary Checks

Unfortunately, not all applicants may be honest about the information they put on their application form. That’s why you should always double-check the information you have

• Running background checks: This will help you ensure tenants have a clean rental history, without any criminal or eviction history. 

• Verifying their income and employment: This will help you confirm the tenants have a stable job and the financial resources to meet their rental obligations.

• Contacting references: Speaking with former landlords is one of the best ways to learn whether someone is a good renter. Additionally, contacting work references will help you ensure applicants don’t lie about their employment status.

 

Compare and Decide

Once you have all the information you need, it’s time to make a decision. Compare each applicant’s information with your screening criteria to determine who is the best fit for your rental. 

Once you’ve made your decision, contact your new tenant to let them know the next steps of the leasing process. You should also consider informing any other applicants their application has been denied so they can move on and look for other options. 

 

Bottom Line 

Screening tenants is crucial for keeping your Ottawa rental protected. Otherwise, you run the risk of renting to problematic or unsuitable tenants and facing serious property damage, regular missed payments, or long-drawn evictions. 

But, by following the tips outlined above and ensuring compliance with the local laws, you’ll be able to find quality tenants and keep your investment safe.

If you need help screening potential tenants in Ottawa, Ontario, contact Rent In Ottawa Property Management!