Owning an investment property in the Greater Toronto Area can be a lucrative venture. However, your success as a landlord will hinge on your ability to attract and retain quality, trustworthy tenants. 

Sourcing and vetting tenants is a critical aspect of property management, and it requires careful consideration and due diligence.  That said, the effort put into this process will pay off in the long run, as it leads to more stability, fewer problems, and a smoother property management experience.

Why is Tenant Vetting So Important?

The Greater Toronto Area boasts some of the highest demand for rental housing in all of North America. While this means that investors have access to a remarkably vast pool of potential tenants, it also means that the sourcing and screening processes are even more critical. 

As a landlord, your tenants will significantly impact your rental property’s success – in addition to your overall peace of mind. A great tenant can contribute to a smooth, nearly-automated investment. On the inverse, a tenant that is less-than-reliable can cause stress, delays in payment, disputes, and other challenges. 

Keep in mind that certain laws and protections can make it somewhat difficult to evict or replace tenants if issues arise. Therefore, you’ll want to be diligent in choosing a high-quality candidate upfront. 

Looking to make an exceptional investment in GTA real estate? Explore these related blogs for insider tips on mastering your purchase. 

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Acing Tenant Screening 

Narrowing down your tenant search to find the ideal candidate starts with a strong screening process. Generally, there are two main elements to screening – an in-person interview and undertaking relevant checks to verify a potential tenant’s financial and personal details. 

First, conduct an interview with potential tenants to assess their communication skills and address any questions or concerns that you or they may have. Ideally, you will meet with candidates in person, however, a telephone or video call can also work. 

Important Questions to Ask

• What is their ideal move-in date?
• Who else will be living with them (if relevant)?
• Does your advertised rent suit their budget?
• What do they do for work?

In addition to these critical screening questions, you should also be aware of what you can’t legally ask a potential tenant. In Ontario, there are certain restrictions governed by the Residential Tenancies Act (RTA), along with the Ontario Human Rights Commission’s various housing policies. These guidelines are fairly deep, however, there are a few stand-out rules to know. 

What You Can’t Ask

• Whether or not they are currently involved in a landlord-tenant board dispute. 
• Whether or not they have been previously involved in a landlord-tenant board dispute.
• What their gender, family status, race, or place of origin is. 
• Whether or not they are disabled.
• Whether or not they are receiving social assistance. 

Verifying Employment & Finances 

If you’re happy with the interview, you can then move on to the next step – verifying their employment and credit history. You will require formal permission to do this, along with some personal information from the candidates themselves.  

Ask them for their full legal name, date of birth, current address, and contact information. You will also require the name of their employer, current income, job title, and the contact information of their supervisor. 

Checking References

When it comes to finding a trustworthy tenant, following through on reference checks is absolutely essential. A candidate may look great on paper, however, you won’t have a full picture of their suitability without speaking to one or more of their previous landlords. 

When speaking to references, ask about their payment history, any damage to the property, and their overall behaviour as a tenant. If everything checks out, you’re one step closer to landing the right person for your property. 

Searching for investment-optimizing insights? You may find these other blog posts helpful.

• How to Maximize Your Buying Power
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Seek Expert Guidance 

Unsure how to best find a trustworthy tenant for your GTA investment property? Ask an expert. As leaders in our local market, Bahia Realty Group is your top resource for all things real estate investment and more. Whether you’re looking to purchase a dedicated income property or optimize an existing asset, our investor-focused strategies can set you up for a venture that is seamless and lucrative. 

Ready to make an exceptional real estate investment? Bahia Realty Group can provide you with a competitive edge in one of the world’s toughest markets. Call 416-498-3444 or click here to send us an email.