Finding the perfect tenant can feel like a high-stakes matchmaking game. If you’re a landlord in Ontario’s bustling rental market—for example in Toronto—you’re likely looking for someone reliable and respectful to make your property their home. But how much freedom do you really have to say “yes” or “no”?
Choosing a tenant is a landlord’s right, but it’s not an absolute right. The Ontario Human Rights Code (the Code) sets out protections for prospective tenants against discrimination in the rental application process. Landlords have a requirement to be proactive and ensure that considerations in the tenant selection process complies with the Code. If you skip these steps, you may find yourself responding to an application at the Human Rights Tribunal.
When can a landlord say no? The legit reasons
Landlords must abide by the Code and there are oftentimes real reasons why they could refuse to rent to a prospective tenant. A landlord has the right to satisfy themselves that the potential tenant has the ability to meet their financial obligations and maintain the unit reasonably. Common reasons for refusing tenancy may include poor credit history, non-payment of rent, poor references from a prior landlord indicating issues such as disruptive behaviour or property damage. Another reason may include the occupancy limit of the unit; imagine renting a one-bedroom unit and a six person family applies—saying no might just be about health and safety standards, not personal preference.
When saying no crosses the line
While there are definitely real reasons a landlord could deny renting to a prospective tenant, tenancy, however, cannot be refused based on one or more protected grounds under the Code. There are 17 grounds including race, ethnicity, place of origin, age, sex, sexual orientation, gender identity, gender expression, marital status, family status, disability, religion and receipt of public assistance which the Code prohibits discrimination. These grounds act are supposed to act as a safety net to ensure that prospective tenants aren’t unfairly excluded from safe housing opportunities.
Some examples include:
- Refusing to rent to a tenant who receives a form of social assistance such as Ontario Disability Support Program or Ontario Works (protected ground: receipt of public assistance).
- Refusing to rent to a single father with children (protected ground: family status).
- Refusing to rent to an individual who practices Muslim faith from Indonesia (protected ground: religious beliefs and country of origin).
Best practices for keeping it fair
Adopting fair, equitable and transparent tenant selection practices is the best way to ensure compliance with the Code. Want to stay on the right side of the Code? Achieving this could be completed through setting clear objective criteria that can be applied to all prospective applicants. All decisions while interviewing and selecting tenants should be well documented, including what factors were considered when granting or denying a rental application. Take notes—keeping records on why you picked Tenant A over Tenant B serves as your safety net if a complaint pops up at the Human Rights Tribunal.
A landlord should avoid asking questions probing personal characteristics covered by the Code in interviews with prospective tenants. The interview process should focus on someone’s ability to fulfil their rental obligations by reviewing rental history, references and financial stability.
Quick tips for landlords
- Stick to the essentials. Can they pay rent? Have they been good tenants before?
- Skip the personal stuff. No need to ask about their religion or family plans.
- Keep records. A little paperwork goes a long way if questions come up later.
Landlords have a right to choose who lives in their property, but this right isn’t absolute. Landlords are required to treat prospective tenants with respect and make a selection without discrimination. By keeping fairness in mind, you’re not just following the rules, you’re making housing work for everyone.