New landlords often struggle with tenant screening – here’s how to do it right (or let a property manager handle it)
Renting out a property sadly isn’t as simple as handing over the keys and hoping for the best. Yes, the right tenant can mean consistent rent payments, a well-maintained property and minimal headaches – but the wrong one? That’s where things get complicated.
Late payments, property damage and even eviction battles can quickly turn a great investment into a major financial strain. That’s why tenant screening is non-negotiable for landlords who want to protect their rental and avoid the unnecessary risks.
For new landlords, this process can feel overwhelming. What should you look for in a rental application? What questions can you legally ask? How do you spot red flags before it’s too late?
In this guide, we’ll break it all down, step by step. From pre-screening tenants to running background checks and using a tenant move-in checklist, we’ll cover everything you need to choose reliable renters with confidence.
And if you don’t want to handle it all yourself? A property management company like Canopy Mgmt, can take care of the heavy lifting, so you can rent with peace of mind.
Why tenant screening matters
Allowing a new tenant into your precious property is a big deal. If they’re dependable and responsible, then you’ll secure a steady income and your place will be well looked after. Fantastic. But let the wrong person in and you could be setting yourself up for late payments, property damage, lease violations – and, in the worst case scenario, a costly eviction.
For new landlords, it can be tempting to rush the process just to fill a vacancy and earn cash. But skipping tenant screening is a gamble that could cost you your time and money. A thorough tenant background screening may be a formality, but it’s also your best defense against unreliable tenants and unexpected problems down the road.
Think of it this way: you wouldn’t hire an employee without checking their resume and references, right? Renting out your property is no different. By screening applicants properly, you’re setting yourself up for a smoother, more predictable rental experience.
So, what should landlords look for in a tenant? And how do you legally and effectively vet potential renters? Let’s break it down.
Step 1 – Define your ideal tenant
Before you start reviewing applications, you need to know exactly what you’re looking for in a renter. A clear set of criteria will not only make the screening process easier but also help you attract the right kind of tenants from the start.
So, what makes an ideal tenant? For most landlords, it comes down to a few key things:
✔️ Financial stability – Can they comfortably afford the rent? A good rule of thumb is that rent should be no more than 30–35% of a tenant’s monthly income.
✔️ Rental history – Have they been responsible renters in the past? Checking references from previous landlords can help spot any red flags.
✔️ Steady employment – A stable job (or reliable income source) is a strong indicator that they’ll be able to keep up with rent payments.
✔️ Respect for property and rules – Every landlord wants a tenant who takes care of the space, follows lease terms, and doesn’t cause issues with neighbors.
What you can and can’t ask
While it’s important to be selective, Canadian tenancy laws protect renters from discrimination. Landlords can only screen applicants based on financial responsibility and rental history – not personal characteristics.
❌ You can’t ask about:
- Age, gender, or marital status
- Religion or place of origin
- Social assistance status
- Family status
✅ You can ask about:
- Employment and income
- Credit history
- Rental references
- Consent for a background check
Want to attract the right tenants from the start? Be upfront about your criteria in your rental listing. Clearly outlining your expectations can help filter out renters who don’t meet your requirements, saving you time and hassle.
Step 2 – Pre-screen tenants before the showing
Once your rental listing is live, the enquiries will start rolling in – but not every applicant will be the right fit. Pre-screening saves you time by weeding out unqualified tenants before you schedule a showing.
A few quick questions can save you from wasted viewings:
- Why are you moving? (Look for stable reasons, not eviction stories.)
- What’s your monthly income? (Aim for rent being ≤ 30–35% of their income.)
- How many people will be living in the unit? (Check for occupancy suitability.)
- Do you have pets? (Confirm if your rental allows them.)
- When do you plan to move in? (Immediate move-ins may signal problems.)
- Are you okay with a credit and background check? (A responsible tenant should be.)
If their answers check out, schedule a property viewing and move to the next step – rental applications.
Step 3 – Conduct a thorough tenant background screening
Now that you have a list of serious applicants, it’s time to dig deeper. A solid tenant background screening helps confirm if they’re financially responsible, reliable, and a good fit for your rental. Here is a tenant screening checklist.
Here’s what to check:
✔️ Credit report – Shows payment history, debts, and financial reliability. Look for on-time payments and a low debt-to-income ratio.
✔️ Employment verification – Call their employer or request recent pay stubs to confirm steady income.
✔️ Rental history – Contact previous landlords to ask about on-time payments, property care, and any lease violations.
✔️ Criminal background check (where allowed) – Some provinces restrict this, so check local laws.
✔️ References – A previous landlord or employer can provide insight into their responsibility and character.
Red flags to watch for:
🚩 Frequent late payments or high debt
🚩 Evictions or disputes with landlords
🚩 Gaps in rental history without explanation
🚩 Unverifiable income or job instability
Tenant screening takes extra time, but choosing the right renter now can save you from major headaches later. If everything checks out, you can then secure the lease and finalize the rental agreement.
Make tenant screening process easier with property management
Tenant screening is important, but it’s also time-consuming and stressful – especially if you’re still figuring out how to be a landlord. One missed detail could mean late payments, lease disputes or costly repairs – and no landlord wants that.
That’s where Canopy Mgmt comes in. We take care of screening a tenant, leasing, rent collection, and property maintenance, so you can secure reliable tenants without the stress. No matter if you’re a new landlord or a well-versed investor, we help protect your investment while you focus on growing your portfolio.
📞 Looking for the right tenants without the drama? Contact Canopy Mgmt today.
