Tenant Screening Mistakes

Tenant screening is one of the most crucial steps in protecting your investment property. Yet many Canadian landlords still underestimate its importance or make small mistakes that can lead to large financial losses. A single poor tenant can result in unpaid rent, property damage, legal fees, and months of vacancy. Even experienced property owners sometimes skip steps or rely on assumptions that ultimately cost far more than the screening would have. Below are six common tenant-screening mistakes seen across Canada, why they’re so costly, and how to avoid them.

Skipping Screening Because “It Takes Too Long”

Some landlords still trust their instincts or believe they can tell whether someone is reliable just by meeting them. Maybe the applicant is polite, professional, or comes with a story that feels genuine. But without verifying their background, you’re essentially handing over your property to a stranger. Modern tenant-screening tools make the process fast and simple. With just an applicant’s date of birth and Social Insurance Number, you can pull a complete report in minutes. Most services available to Canadian landlords, such as the Landlord Credit Bureau, Equifax Canada, or Naborly, provide credit history, eviction records, and criminal background checks. Skipping this step might save you a few minutes now, but if the tenant stops paying rent or causes damage, you’ll spend months and thousands of dollars fixing a problem that could have been prevented with one quick check.

Relying Only on Credit Score and Income

It’s tempting to approve a tenant with a high salary and has a high credit score, but those numbers don’t tell the whole story. Someone can be financially stable but careless with property, difficult with neighbours, or prone to lease violations. Conversely, a renter with a modest credit score could be an ideal tenant, responsible, quiet, and punctual with rent. The key is to look beyond credit and income. Ask for landlord references, confirm employment directly, and review their rental history. A pattern of consistent payments and respectful tenancy is a much better predictor of success than numbers alone. Also, in Canada, credit data isn’t always as comprehensive as in the U.S. Some renters, especially younger ones or recent immigrants, may have limited credit histories. In these cases, references and income verification become even more important.

Skipping Background Checks to Save Money

Some landlords hesitate to pay for background checks, thinking it’s an unnecessary expense. But the cost of not doing it can be enormous. In Canada, eviction costs often exceed $10,000 once you factor in unpaid rent, court filings, damage repairs, and the months of lost rent while the unit sits empty. According to the Landlord Credit Bureau, the average eviction costs between $6,000 and $11,000, and in some provinces, particularly Ontario and Québec, it can take several months to regain possession. Screening fees, by contrast, usually run between $50 and $80 per applicant, and many landlords pass that on through an application fee. Think of screening as insurance. A $50 background check could save you tens of thousands in the long run.

Believing Credit Checks Hurt Applicants’ Scores

This misconception still prevents some landlords from doing proper credit checks. When you use an approved Canadian tenant-screening service, the credit inquiry is considered a soft pull, meaning it doesn’t affect the applicant’s credit score. Only hard inquiries, like those triggered by applying for a mortgage or new credit card, cause a minor, temporary dip. Explaining this to applicants can ease their concerns and make your process appear transparent and professional. By reassuring tenants that their score won’t be affected, you reduce hesitation and make your rental process more efficient.

Not Verifying Tenant Information

Even with a detailed application, it’s critical to verify everything a tenant claims. Some applicants will exaggerate income, provide false landlord references, or omit eviction histories. Always call employers directly rather than relying solely on documents. Ask for recent pay stubs, employment letters, or even contact information for supervisors. When speaking with previous landlords, ask pointed questions: Did they pay on time? Did they maintain the property? Would you rent to them again? Cross-checking this information through credit and eviction databases (available through the Landlord and Tenant Board, Tribunal administratif du logement in Quebec, or private services) can help catch inconsistencies. Skipping verification is one of the most common and preventable mistakes in tenant selection.

Ignoring Red Flags or Gut Instinct

Screening should always rely on verified data, but intuition still matters. Sometimes, everything on paper looks perfect: income, credit, clean background, but something feels off. Maybe the applicant seems evasive, insists on moving in immediately, or avoids questions about their current landlord. If something doesn’t feel right, investigate further. Ask for an extra reference, request a larger deposit if legally allowed, or simply move on to the next applicant. A rushed or pushy tenant often signals trouble ahead. Your instincts won’t always be right, but they can alert you to situations where additional screening is warranted.

The Real Cost of Poor Screening in Canada

Every mistake in screening can come back to haunt you, but nowhere is this clearer than in provinces with tenant-friendly laws and lengthy eviction processes. Consider a case from Montreal that circulated in landlord forums and the local media. A property owner rented a two-bedroom apartment for $1,800 per month to a tenant who seemed reliable and charming. The landlord skipped a full background check because the tenant provided pay stubs and appeared trustworthy. Within six months, rent payments stopped. The landlord filed a non-payment case with the Tribunal administratif du logement (TAL), but the process took several months due to scheduling delays. During that time, the tenant remained in the unit without paying. When the tenant finally vacated, the landlord discovered roughly $3,000 in property damage, including broken appliances and extensive wall repairs.

By the time the case was resolved, the total losses were:

• Unpaid rent: $5,400 (three months)

• Repairs: $3,000

• Legal and filing fees: $1,200

• Lost rent during turnover and repairs: $7,200

That’s a total of roughly $16,800 in losses, all from one poor screening decision.

And this case isn’t rare. Many Quebec landlords report that from the time rent stops being paid to the time a unit can be re-rented, it can take four to six months. For a property generating $1,800 per month, that’s over $10,000 in missed rent before repairs and legal fees are even considered. Bad tenants don’t just cost money, they create stress, damage relationships with neighbours, and consume valuable time that could be spent managing your business.

Building a Reliable Screening Process

The simplest way to avoid these traps is to create a consistent, transparent screening process and apply it to every applicant. That means:

• Collecting a completed rental application.

• Running a credit, background, and eviction report.

• Verifying income and employment directly.

• Contacting previous landlords for references.

• Keeping records of all your decisions for legal protection.

Automation tools designed for Canadian landlords, like Naborly, SingleKey, or the Landlord Credit Bureau, allow you to handle these steps digitally and remain compliant with privacy and human rights laws. This is particularly important in Canada, where provinces have varying rules about what information landlords can request. For instance, in Ontario, landlords can’t ask for post-dated cheques or deposits beyond the legal limits, while in Quebec, credit checks require the applicant’s written consent. Staying compliant not only protects you legally, it also demonstrates professionalism, which helps attract better tenants.

Final Thoughts

Approving a tenant based on gut feeling or incomplete information is one of the riskiest moves a landlord can make. In Canada’s rental landscape, where eviction timelines can stretch for months, he cost of one bad tenant is far greater than the price of a proper screening. Think of screening as a protective measure, not a formality. It ensures steady income, preserves your property’s value, and saves you from the financial and emotional toll of eviction. By avoiding these six mistakes, skipping screening, relying solely on credit and income, avoiding background checks, fearing credit pulls, neglecting verification, and ignoring red flags, you’ll protect your investment and set yourself up for long-term success in Canada’s ever-tight rental market. Good tenants aren’t found by luck, they’re found through process. The small effort it takes to screen properly is what separates profitable landlords from the ones telling horror stories.