Can landlords use a percentage of the applicant’s gross income as a screening tool?

Landlords may use income information, credit checks, credit references, rental history, guarantors and other similar business practices to screen tenants as prescribed in the regulations made under the Ontario Human Rights Code. Landlords are encouraged to use a rental application. This ensures that the same information is collected from all prospective tenants. Typically, a rental application requires the prospective tenant to provide information related to employment, their current and previous landlords, banking information and, most importantly, to sign a clause authorizing the landlord to conduct a credit check. The landlord is not be permitted to access the tenant’s confidential credit information unless the prospective tenant provides written consent agreeing to permit a credit check. There are limited circumstances under which access to an individual’s credit information may be gained; one of them is for the purpose of approving an application for rental accommodation. If a prospective tenant refuses to provide all the requested information (rental history and credit references) the landlord can then proceed to use the income information to determine eligibility. Landlords may request income information only IF rental history, credit references and authorization to perform a credit check is also requested. Income information cannot be used as the sole reason to decline an application.

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