Can a Landlord Ask for Credit Checks and References in Ontario?

You have found a rental you like, and the application asks for your credit score, pay stubs, references and maybe a co-signer. It is fair to wonder what a landlord is actually allowed to ask for, and what is going too far.

Ontario has a specific rule on rental screening, and it sits alongside human rights protections and the Residential Tenancies Act, 2006. This article walks through what is generally allowed, what is limited, and what to do if an application feels wrong.

What a landlord may ask for

A landlord may ask a prospective tenant for credit references and rental history, and for permission to run a credit check. The landlord may use that information to select or refuse the applicant.

In practice, that means a landlord can contact a past landlord, review your payment history, and look at a credit report if you agree to it. Refusing permission may make it harder to be chosen, so it is worth thinking about before you decline.

• Credit references
• Rental history, such as past landlord contact details
• Permission to run a credit check

Income information has stricter limits

A landlord may ask for income information only if they also ask for credit references, rental history or a credit check. Income information must be considered together with that other information.

There is one exception. If the landlord asked for all of the listed information but obtained only income information, the landlord may consider income alone. So a landlord cannot simply rank applicants by income and ignore everything else, unless that is all you provided after being asked for the rest.

Guarantors, deposits and post-dated cheques

A landlord may require a prospective tenant to get a guarantee for the rent, so guarantor clauses are permitted. A guarantor who is named as a tenant in the lease but has no right to occupy the unit does not become a tenant under the Residential Tenancies Act. How far a guarantor is liable depends on the wording of the guarantee, so read it carefully before signing.

Deposits are limited too. The only security deposit a landlord may collect is a rent deposit. It can be no more than one rent period or one month's rent, whichever is less, and it earns annual interest at the rent increase guideline rate. Because a rent deposit is the only one allowed, a landlord may not collect other kinds of security deposit, such as a damage deposit or a key deposit.

Neither a landlord nor a lease may require you to provide post-dated cheques or other negotiable instruments for rent. The Act applies despite any agreement or waiver to the contrary, and a lease term that conflicts with it is void.

One caution: the Act does not apply where the occupant must share a bathroom or kitchen with the owner, or with the owner's spouse, child or parent who lives in the same building. A self-contained basement apartment does not fall under that exemption.

Where human rights rules draw the line

Under the Human Rights Code, everyone has a right to equal treatment in the occupancy of accommodation without discrimination because of race, ancestry, place of origin, colour, ethnic origin, citizenship, creed, sex, sexual orientation, gender identity, gender expression, age, marital status, family status, disability or the receipt of public assistance.

Using income information, credit checks, credit references, rental history or guarantees in the manner the regulation prescribes does not infringe the Code. The flip side is that using them outside those limits, or as a cover for turning someone away on a protected ground, can raise a human rights problem.

• Shared kitchen or bathroom with the owner or the owner's family, in a dwelling where they live: the accommodation right is not infringed.
• A 16- or 17-year-old who has withdrawn from parental control has a right to equal treatment in renting, and a lease they sign is enforceable against them as if they were 18.

What to do next

• Read the application and note every item requested.
• Check whether the landlord is asking only for income information, and ask what else they will consider.
• Keep copies of everything you submit, and of any messages about why you were refused.
• Read any guarantee closely before a family member or friend signs it.
• Do not agree to post-dated cheques or to a deposit larger than one month's rent.
• If you think you were refused because of a protected ground, write down what was said and when, then speak with a lawyer or a human rights resource about your options.

Frequently asked questions