What you can ask for
Ontario's regulation under the Human Rights Code names what a landlord may use to choose a tenant: income information, credit references, rental history and credit checks. There's a condition on income. You can ask about it only if you also ask for the others, and you have to weigh it together with them.
You can also ask for a guarantor to sign the lease, as long as you'd ask the same of every applicant.
How to use income fairly
A fixed rent-to-income cut-off, such as the familiar "rent can't be more than 30% of income", is illegal outside subsidized housing, according to the Ontario Human Rights Commission. Income is there to confirm the applicant can cover the rent. It shouldn't be used on its own unless there's nothing else to go on.
A thin file isn't a bad file. A lack of rental or credit history shouldn't count against someone. Newcomers, students and first-time renters all start somewhere, and a first lease has to be somebody's.
What the Human Rights Code rules out
You can't refuse an applicant, or treat them differently, because of race, colour, ethnic origin, ancestry, place of origin, citizenship (including refugee status), creed, sex (including pregnancy and gender identity), sexual orientation, age, marital status, family status, disability or receipt of public assistance. That includes 16- and 17-year-olds who have left home.
In practice that means no questions about children or plans to have them, where someone is from, their religion or their relationship status, and no turning down someone because their income comes from Ontario Works or the Ontario Disability Support Program. If a question doesn't help you judge whether the rent gets paid and the home gets looked after, leave it off the application.
Deposits: the only two allowed
| Deposit | Allowed? | Rules |
|---|---|---|
| Last month's rent | Yes | No more than one month's rent. It can only be used for the last month, never for repairs. You pay interest on it every year at the guideline rate. |
| Key or fob deposit | Yes | Must be refunded when the keys come back. A replacement key can be charged at no more than its actual cost. |
| Damage, pet or other deposits | No | A tenant who pays one can apply to the Landlord and Tenant Board to get it back. |
The first month's rent isn't a deposit. It's simply the rent for the first month.
Payment and lease terms that won't hold
You can't require post-dated cheques or automatic payments, though many tenants are happy to set them up. Nor can a lease term bar guests, roommates or pets, or charge a deposit the Act doesn't allow. Terms like that are void even when the tenant has signed them. The other lines landlords cross most often are in 5 things landlords cannot do in Ontario.
Quick answers
Can a landlord ask for proof of income in Ontario?
Yes, together with credit references, rental history and a credit check, and weighed alongside them, not on its own.
Can I require that rent be no more than 30% of income?
No. The Ontario Human Rights Commission says a rent-to-income cut-off like that is illegal, outside subsidized housing.
Can a landlord ask for a damage deposit in Ontario?
No. The only deposits allowed are last month's rent (up to one month) and a refundable key deposit.
Can I ask for a guarantor?
Yes, if you have the same requirement for every applicant.
Can I refuse a tenant who receives Ontario Works or ODSP?
No. Receipt of public assistance is a protected ground under the Human Rights Code.
Want a second pair of eyes on your applicants?
Tell us about your unit. We put every applicant through the same checks, within the Human Rights Code, and show you who applied and why we'd choose them.
Sources: Ontario Human Rights Commission: Policy on human rights and rental housing, and Rental housing and the Ontario Human Rights Code; A guide to the standard lease for rental housing; Tribunals Ontario: A Guide to the Residential Tenancies Act and Interpretation Guideline 11. Current forms are on Tribunals Ontario, and the Landlord and Tenant Board answers questions at 416-645-8080. This guide is general information, not legal advice. nestabode · HouseSigma Inc. Brokerage.