Blog > How should Markham landlords screen tenants under Ontario law
How should Markham landlords screen tenants under Ontario law
Screen every applicant the same way, verify everything at the source, and stay within the Human Rights Code. Under Ontario regulations, landlords may ask for credit references, rental history and consent to a credit check, and may consider income information alongside them. Verify employment with the employer directly, have the credit report come straight from the bureau rather than accepting a PDF, and call previous landlords as well as the current one. Use the Ontario Standard Lease, collect only last month’s rent and a refundable key deposit, and avoid rigid rent-to-income cut-offs. A careful process matters, because disputes at the Landlord and Tenant Board can take months to resolve.
Why Screening Matters More Than Ever
For a Markham condo investor or a family renting out a basement unit, one difficult tenancy can wipe out years of rental profit. When rent stops, the landlord still pays the mortgage, property tax, insurance and condo fees, and resolving the problem at the Landlord and Tenant Board (LTB) takes time. A 2026 legal guide estimated that non-payment (L1) applications were taking about four to six months to reach a hearing, and other application types longer. Ontario’s Ombudsman reported in 2023 that hearing scheduling had stretched to an average of seven to eight months.
As an illustration, a $3,000-a-month unit with six months of unpaid rent is $18,000 in lost income before legal costs, repairs or turnover. Prevention is far cheaper than enforcement.
Michael John Lau, a REALTOR® with the Kaizen Real Estate Team, one of the most active real estate teams in Markham and York Region, works with investors who treat tenant selection the way a lender treats a loan application: verify, document and decide consistently.
What Ontario Law Allows You to Ask
Ontario’s Human Rights Code protects tenants and applicants from discrimination in housing. Protected grounds include race, ancestry, place of origin, colour, ethnic origin, citizenship, creed, sex, sexual orientation, gender identity and expression, age, marital status, family status, disability and the receipt of public assistance.
A regulation under the Code (O. Reg. 290/98) allows landlords to request credit references, rental history and authorization for a credit check, and to request and consider income information together with that information. The Ontario Human Rights Commission has said that rigid rent-to-income ratios and minimum income rules can be discriminatory, and that requiring a guarantor only because an applicant receives social assistance may breach the Code.
| Generally acceptable | Avoid |
|---|---|
| Rental history and landlord references | Questions about plans to have children |
| Credit check with written consent | Refusing an applicant who receives social assistance |
| Income information, considered with credit and references | A fixed rent-to-income cut-off used alone |
| Employment confirmation | Questions about religion, origin or disability |
A Verification Checklist That Holds Up
- Identity: match government photo ID to the application and the credit report.
- Credit report from the source: run it through a screening service with written consent, or have the applicant share it directly from the credit bureau, rather than accepting a downloaded PDF.
- Employment: look up the employer’s main phone number yourself and confirm the role and start date. Do not rely only on a number printed on the letter.
- Income documents: compare pay stubs, the employment letter and the applicant’s CRA Notice of Assessment for consistency.
- Bank records: statements that show regular payroll deposits and past rent payments are hard to fake consistently.
- References: call the previous landlord as well as the current one. A current landlord may be eager to see a difficult tenant leave.
- Public records: some LTB decisions are published on CanLII and can be searched.
Buying a Markham rental property or condo investment? Call Michael John Lau, REALTOR®, at (416) 700-0286 to review rents, demand and carrying costs before you buy.
Spotting Altered or Forged Documents
Edited credit reports, pay stubs and employment letters are a growing problem. Warning signs include fonts or spacing that do not match, numbers that do not add up, missing page numbers, a credit report addressed to a different address, a recently created email domain for the employer, and pressure to sign quickly or pay with large amounts of cash.
The best defence is to get information from the source rather than from the applicant. If an applicant refuses to let you verify, that tells you something important.
The Standard Lease and Deposit Rules
- Standard Lease: most residential tenancies signed on or after April 30, 2018 must use Ontario’s Standard Form of Lease. If a landlord does not provide it within 21 days of a tenant’s written request, the tenant may withhold one month’s rent.
- Deposits: a landlord can collect a rent deposit for the last month and a refundable key deposit. Damage and pet deposits are not allowed.
- Interest: landlords must pay interest on the last month’s rent deposit each year, at the rent increase guideline rate. The 2026 guideline is 2.1%.
- Payments: a landlord cannot require post-dated cheques or automatic withdrawals, though many tenants agree to them.
2026 Changes Every Landlord Should Know
Amendments to the Residential Tenancies Act under Bill 60 and Bill 97 take effect in stages, according to a summary by the Ontario Non-Profit Housing Association:
| Change | Effective |
|---|---|
| Deadline to request a review of an LTB decision cut from 30 to 15 days | July 1, 2026 |
| Tenants may install window or portable air conditioners in some cases | July 1, 2026 |
| Tenants have 7 days, down from 14, to pay arrears after an N4 notice before the landlord can apply | September 21, 2026 |
| No compensation required for an own-use (N12) termination if the date is at least 120 days after notice | September 21, 2026 |
| Tenants raising maintenance issues at non-payment hearings must first pay 50% of rent owing | Date not yet announced |
Protecting Your Cash Flow
- Keep a reserve of several months of carrying costs for each rental unit.
- Price the rent to the market, so you attract a wide pool of qualified applicants rather than settling for the only one who applies.
- Document everything: the application, consents, verification notes and move-in condition photos.
- Protect personal information: collect only what you need and store it securely.
- Get legal help early if rent is missed, so notices are served correctly the first time.
Ultimately, the decision is yours. The goal is to make sure you have all the information before you hand over the keys.
Next Steps
- Real estate investing in Markham: how Michael helps investors compare properties.
- Markham condos: buildings and rental demand across the city.
- Basement apartment vs. garden suite: which earns more in Markham.
Frequently Asked Questions
Can Ontario landlords run a credit check on tenants?
Yes. Under O. Reg. 290/98, landlords may request authorization to run a credit check, along with credit references and rental history. Get written consent first.
Can a landlord ask for proof of income in Ontario?
Yes, but income information should be considered together with credit references, rental history or a credit check. Rigid rent-to-income cut-offs can be discriminatory.
What deposits can an Ontario landlord collect?
A last month’s rent deposit and a refundable key deposit. Damage and pet deposits are not permitted, and interest must be paid on the rent deposit each year.
Is the Ontario Standard Lease mandatory?
For most residential tenancies signed on or after April 30, 2018, yes. A tenant can withhold one month’s rent if the landlord does not provide it within 21 days of a written request.
What is the 2026 rent increase guideline in Ontario?
The 2026 guideline is 2.1%. It does not apply to units first occupied for residential purposes after November 15, 2018.
What changed for N4 notices in 2026?
From September 21, 2026, tenants have 7 days, down from 14, to pay arrears after an N4 notice before a landlord can file with the Landlord and Tenant Board.
Work With Michael John Lau in Markham
Michael John Lau helps Markham investors buy rental properties with clear numbers: realistic rents, carrying costs and the demand for each building or street. That includes connecting owners with the right legal and property management support. The goal is a rental that supports your plan, not one that keeps you up at night.
📞 Contact Michael John Lau, REALTOR®
🌐 www.callmikelau.com
Investing in a Markham rental?
Michael John Lau can help you compare buildings, rents and risks before you buy.
Michael John Lau, REALTOR® · Markham, Ontario · (416) 700-0286
Disclaimer. Michael John Lau is a licensed REALTOR® serving buyers and sellers in Markham, Ontario and the Greater Toronto Area. Legal information is from Ontario’s Human Rights Code and O. Reg. 290/98, the Ontario Human Rights Commission, the Ontario Standard Lease, the 2026 rent increase guideline, and the Ontario Non-Profit Housing Association’s summary of Bill 60 and Bill 97 changes (April 30, 2026). LTB wait times are estimates from Lawyerinfo (March 2026) and the Ontario Ombudsman (May 4, 2023). The cost example is for illustration only. Michael John Lau is not a lawyer, accountant, tax advisor or mortgage professional. This article is general information, not legal, tax or financial advice. Speak with a qualified professional about your own situation.