Screening for Tenants in Canada

[Graham Setters]

Any Canadian RE investors/property managers out there willing to share any helpful hints on your tenant screening process would be highly appreciated (particularly credit score checks). Most of the content on BP that I've been able to come across is US based. Thanks for your time!

[Roy N.]

Originally posted by @Jacob Perez:

Hey @Graham Setters - Several tenant screening options. Here's my key advice:

• Credit check you can simply ask them to provide but for me it's not necessarily a huge concern.
  

A current credit history is a vital concern.  Knowing how to read a credit history report will show you the difference between a "life event" (divorce, illness, etc) and a pattern of high-leverage (spending beyond ones means) and/or poor consumer spending decisions.  It will also tell you which payees get stiffed first.

Do not accept a credit history report from the applicant.  The main reason is it is not independent and could be doctored by the applicant.  In addition, the credit history people obtain through their banks or a service provider are for their personal use only and not permitted to be shared.   The same is true when you pull a credit history - your agreement with the agency or bureau will prohibit you providing a copy to the applicant or a third-party.

I would recommend setting yourself up with an agency such as RentCheck or Tenant Verification Services (TVS) - which will allow you to pull credit histories in both Canada and the U.S.A.