How to Find Great Tenants: Our Screening Checklist (and Why It Matters)

Finding a “good tenant” isn’t about one perfect number — it’s about consistency, honesty, and a story that adds up. At Paragon Property Management, we screen thoroughly because the right match protects your property, your cash flow, and the tenant’s housing stability.

Below is a look at what we check, what red flags we watch for, and how you can tighten up your own process.

1) Start with a clear, consistent process (fair + repeatable)

Before you run a single credit check, get your process in order:

• Use the same application for everyone

• Ask for the same documents from everyone

• Keep notes on what you verified (and when)

• Don’t “wing it” based on vibes alone — use a checklist, then use your judgment

This consistency matters for fairness, and it also protects you if someone later questions how the decision was made.

2) Credit score: we like to see 600+ (but we still look at the full picture)

Credit history is one of the strongest signals of payment behaviour — and it’s harder to fake than a paystub.

Our preference: a credit score over 600 But: we still read the report like a story, including:

• Late payments (how recent, how frequent?)

• Collections, consumer proposals, bankruptcies

• High utilization (maxed-out credit can be a risk flag)

• Stability over time (a newer credit file needs more supporting proof)

Also note: people new to Canada or younger applicants may have thin credit. That doesn’t automatically mean “bad tenant” — it just means you need stronger verification in other areas.

3) Income verification: confirm they can cover rent (without using a rent-to-income cutoff)

A common “rule” landlords talk about is rent-to-income (example: “rent must be under 30–40% of income”). In Ontario, you generally cannot apply rent-to-income ratios as a hard cutoff (except in certain subsidized / rent-geared-to-income contexts).

So what do we do instead?

We verify ability to pay by confirming income is real and stable, using:

• Recent paystubs

• Employment letter (when available)

• Employer verification call (with consent)

• Bank statements (to confirm deposits match paystubs)

• Debt obligations (see next section)

Key idea: you can confirm they have enough income to pay rent — you just shouldn’t deny someone by quoting a strict “ratio rule.”

Debt Checks: it’s not just income — it’s what’s already spoken for

Two applicants can earn the same amount and have completely different risk levels.

We look at the bigger picture:

• Credit obligations (loans, cards, arrears)

• Signs of overextension (high balances, many recent credit inquiries)

• Whether the bank deposits actually support the stated income

When we ask for bank statements, we’re not “being nosy.” We’re trying to confirm:

• deposits are consistent

• the employer name matches

• income timing aligns with pay periods

• documents haven’t been altered

5) Rental history: useful, but not always reliable — verify it smartly

We do check rental history, but we’re realistic:

• Tenants sometimes provide a friend’s number pretending to be a landlord

• Past landlords may give a glowing reference just to move a problem tenant along

• Some tenants will spin a story either way

If an applicant has rented before, ask for:

• rent receipts

• proof of on-time payments (where available)

• address history that matches the application and credit file

When we call landlords, we usually focus on the last two, and we verify we’re speaking to the real owner/manager (not a buddy). Good practice: cross-check ownership through public info, or confirm against documentation before relying on the reference.

6) Fraud prevention: your best defense is cross-checking everything

Fraud is real — and it’s getting more sophisticated. Your job is to make sure identity + documents + story all match.

Here’s what we cross-check:

• Driver’s licence name/address matches application details

• Credit report name/address history matches the story

• Paystub employer matches what the applicant says

• Bank statement deposits match paystub amounts and timing

• Emails and phone numbers aren’t “throwaway” vibes

• We watch for inconsistent fonts, odd spacing, cut-and-paste artifacts, missing employer info

Also: be mindful of privacy and only collect what you truly need, with consent, and store it securely. Canada’s federal privacy law for commercial activity (PIPEDA) is the baseline many landlords and property managers need to consider.

7) Employer references: we want stability, not just a number

We don’t just want to know “do they work there.”

We want to know:

• Are they in good standing?

• Full-time, part-time, contract?

• How long employed?

• Any risk of job loss?

(And yes — always handle these checks appropriately and with consent.)

8) “Spidey sense” matters — but back it up with facts

We agree with you: don’t rush. Most bad tenancies start with someone ignoring that little voice that says, “Something isn’t adding up.”

If something feels off:

• Slow down

• Ask one more question

• Request one more supporting document

• Verify from a second source

Your gut is a signal — your checklist is proof.

Quick Landlord Checklist (copy/paste)

Identity

• Government photo ID matches application info

• Name/address consistent across documents

Credit

• Prefer 600+ score

• Review payment history, collections, utilization, stability

Income

• Paystubs + bank deposits match

• Employer verified

• Income appears stable

Debt

• Debt load looks manageable relative to income

• No major unexplained arrears patterns

Rental history

• Last 2 landlords (verified as real)

• Rent receipts / proof of payment if possible

Fraud flags

• Inconsistencies, altered docs, vague answers, urgency pressure

Want help placing a great tenant?

If you’re filling a vacancy and want the screening done properly (and legally) — reach out to Paragon Property Management. We’ll market the unit, handle showings, screen applicants thoroughly, and place a tenant you can feel confident about.

Friendly disclaimer

This blog is for general information only and isn’t legal advice. For legal guidance, contact a qualified professional or community legal clinic.