How to Choose a Tenant in Quebec: Credit Checks, Screening and Mistakes to Avoid
You have a rental property available.
The showings begin.
Several applicants seem interested.
And one question quickly becomes important:
“How do I choose a good tenant without making the decision at random?”
For a property owner, that decision can have consequences for years.
A strong application can contribute to more predictable rental income and simpler property management.
A poor decision can lead to payment problems, disputes, additional procedures and far more management than expected.
But there is a trap:
Trying to find the “perfect tenant” based on instinct.
Someone can be extremely friendly during a showing and still have concerning payment habits.
Another person can be much quieter while presenting a strong application.
The best applicant is not necessarily the person who makes the best first impression.
The better question is:
“Does the information I can legitimately verify indicate that this person is reasonably likely to meet their rental obligations?”
Because a good tenant-screening process should reduce risk.
Not try to predict the future.
Why Is Choosing the Right Tenant So Important?
A rental property is not just a building.
It is also a series of revenues and expenses that need to work together.
The mortgage continues.
Property taxes continue.
Insurance continues.
Maintenance continues.
Repairs continue.
And when a unit does not generate the income you expected, the property’s expenses do not disappear.
That is why tenant selection is part of managing real estate investment risk.
You cannot eliminate that risk entirely.
No landlord can.
The objective is to make a better-informed decision using relevant information rather than relying on an impression.
What Is the Best Way to Choose a Tenant in Quebec?
Start before you even meet the applicants.
Determine the objective criteria you will use to evaluate applications.
Depending on what is relevant and permitted in your situation, you may want to consider:
- payment capacity and payment habits;
- credit information when relevant;
- appropriate rental references;
- relevant information about previous tenancies;
- other reasonable ways for an applicant to demonstrate an ability to meet their financial obligations.
Why establish your process before the showings?
Because applying consistent criteria becomes much easier when you determine them before meeting the people involved.
You reduce the risk of turning:
“I have a better feeling about this person.”
into a screening criterion.
Choose an application. Not a personality.
Can a Landlord Run a Credit Check on a Prospective Tenant in Quebec?
Yes.
But not however you want.
A landlord can use a credit check to evaluate a prospective tenant’s payment habits.
However, the applicant’s consent must be obtained before a credit check is performed through a third party.
The Commission d’accès à l’information du Québec explains that a person’s name, address and date of birth are generally sufficient to perform a credit check.
A Social Insurance Number is therefore generally not necessary for this purpose.
That matters because when handling personal information:
More information does not automatically mean better screening.
A better question is:
“Do I actually need this information to evaluate the application?”
What Should You Check in a Tenant Application?
A credit score can be useful.
But it does not tell the whole story.
What you are really trying to understand includes the applicant’s payment habits and their ability to meet the financial obligations associated with the rental.
Several pieces of information can therefore be relevant.
Credit History
A credit report can provide information about credit history and certain payment habits.
But avoid turning one number into an automatic verdict.
Someone may have a limited credit history for several reasons.
A young tenant may only be beginning to establish credit.
A newcomer may not have a long credit history in Quebec.
A particular situation may also explain certain elements of the file.
A credit score is information. It is not a crystal ball.
It can contribute to your analysis.
It should not replace it.
Previous Landlord References
Rental references can complement your analysis when used appropriately.
They may help verify relevant information concerning a previous tenancy.
But the objective should not be to ask:
“Did you like this person?”
Look for facts relevant to the rental relationship.
You want useful information.
Not a personal opinion.
Payment Habits
An applicant may also be able to demonstrate payment habits in other reasonable ways.
Depending on the circumstances, this could include appropriate documents or references demonstrating that periodic financial obligations have been respected.
This can become particularly important when an applicant has little traditional rental or credit history.
No history is not the same as bad history.
Can You Ask a Tenant for Identification?
You may need to confirm an applicant’s identity.
But verifying identification and keeping all the information contained on that identification are two different things.
In Quebec, the collection of personal information must be limited to what is necessary.
The Commission d’accès à l’information explains that a landlord can ask to see identification to confirm a prospective tenant’s identity, but cannot simply photograph or photocopy that identification to keep in the rental file.
The same principle applies to certain identification numbers.
Verifying identity does not mean collecting everything printed on the card.
Can a Landlord Ask for a Social Insurance Number?
Do not treat this as an automatic part of tenant screening.
A Social Insurance Number is generally not necessary to perform a credit check.
And this illustrates a much broader principle.
Before requesting personal information, ask yourself:
“Why do I need this information?”
If you cannot clearly answer that question, verify whether you actually need and are permitted to collect it.
Should You Choose a Tenant Based on the Showing?
A showing allows you to present the property.
Answer questions.
Clarify relevant information.
And determine whether the property appears to meet the applicant’s needs.
But it should not become a personality contest.
Someone who talks a lot is not necessarily more reliable.
Someone who is reserved is not necessarily less serious.
Someone who arrives with a big smile does not tell you how they will meet their obligations twelve months from now.
Criteria such as:
“He seemed friendly.”
“She seemed more serious.”
“I had a better feeling about the other person.”
do not replace structured screening.
Some grounds for discrimination are also prohibited under Quebec law. The Commission des droits de la personne et des droits de la jeunesse provides information about prohibited grounds of discrimination under Quebec’s Charter.
Impressions can make you feel comfortable. Verification helps you decide.
What Questions Can You Ask a Prospective Tenant?
Questions should focus on information relevant to the rental.
You may need to clarify matters such as:
- the desired move-in date;
- the people who will occupy the unit;
- information necessary to evaluate payment capacity and payment habits;
- relevant references;
- understanding of the property and lease conditions.
Avoid turning a showing into an interrogation about someone’s private life.
You do not need to know everything about a person to determine whether their application meets your criteria.
Collect what is relevant. Not simply what is available.
Should You Automatically Choose the Applicant With the Best Credit?
No.
An excellent credit score does not guarantee a problem-free tenancy.
And a lower score does not automatically mean an applicant will fail to meet their obligations.
Look at the relevant information as a whole.
Ask yourself:
Does the available information demonstrate sufficiently reassuring payment habits?
Are the references consistent?
Can the applicant demonstrate an ability to meet their obligations?
Is there a particular situation that explains certain elements of the application?
Serious tenant screening is not about finding a magic number.
It is about making a better-informed decision using several relevant pieces of information.
What If the Applicant Is a Student or Newcomer to Quebec?
This is exactly where an overly rigid screening process can become misleading.
A student or newcomer may have little or no rental or credit history in Quebec.
That does not automatically mean they are a poor candidate.
Other reasonable methods may help evaluate their ability and payment habits while respecting the applicable rules.
The distinction matters:
No history is not the same as bad history.
Look at the relevant information available rather than reaching a conclusion simply because one traditional piece of information is missing.
Can a Landlord Ask for a Security Deposit in Quebec?
Be particularly careful with this issue.
The Tribunal administratif du logement explains that a landlord cannot require more than the first term of rent in advance and cannot require additional amounts as a security deposit for things such as keys or potential damage.
Do not automatically copy a practice you have seen elsewhere in Canada or the United States.
A common practice somewhere else is not automatically permitted in Quebec.
How Do You Write a Rental Listing That Attracts the Right Applicants?
Tenant selection begins before the credit check.
It begins with your property and your listing.
Clearly present:
- the rent;
- availability;
- number of bedrooms;
- inclusions and exclusions;
- parking, when applicable;
- important features of the property;
- location;
- nearby services;
- other relevant information.
Use recent, representative photographs.
Why?
Because your objective is not necessarily to receive the largest number of inquiries.
Your objective is to attract applicants whose needs actually match the property.
One hundred poorly matched inquiries are not necessarily more useful than fifteen strong applications.
Your Asking Rent Also Influences the Applicants You Attract
This is often overlooked.
Your rental strategy starts with the price.
If the asking rent does not correspond with the market, you may significantly reduce the number of interested applicants.
If the property is poorly presented, you may receive fewer relevant applications.
If the listing lacks important information, good candidates may simply move on to another property.
So before asking:
“Why can’t I find good tenants?”
also ask:
“Why would the applicants I want choose my property over another one?”
The rent.
The condition.
The photos.
The description.
The inclusions.
The location.
The competition.
All of these factors influence your applicant pool.
Tenant selection does not begin with the application form. It begins with what you offer the market.
Should You Rent to the First Applicant Who Seems Suitable?
Not necessarily.
A vacant unit costs money.
And as the days pass without rental income, the pressure can build quickly.
But that urgency can create another mistake:
Rushing the process simply to fill the unit.
Imagine a property renting for $1,600 per month.
You are worried about losing a few weeks of income.
So you quickly accept an application without completing the checks you would normally perform.
You may have reduced the vacancy period.
But did you actually reduce your risk?
The cost of a short vacancy and the potential cost of a poor decision are not necessarily comparable.
That does not mean searching forever for the perfect tenant.
They probably do not exist.
It simply means:
Do not let urgency replace your process.
Choosing a Tenant in Greater Montreal and the South Shore
Rental markets can vary considerably from one area to another.
In Saint-Laurent, the type of property, proximity to public transit and location can attract different types of applicants.
In areas such as Outremont, Rosemont-La Petite-Patrie and Anjou, rental conditions can differ depending on the property type and market segment.
On the South Shore, Brossard, Saint-Lambert, Longueuil, Saint-Hubert and Candiac also have different rental markets and types of housing.
But the principle does not change.
An active rental market is not a reason to abandon your screening process.
The more applications you receive, the more useful a consistent process becomes.
Are You Buying a Plex or Rental Property With Existing Tenants?
In that situation, someone else may already have selected the tenants.
And that changes your analysis.
When evaluating an income property, do not look only at:
- the asking price;
- gross rental income;
- property taxes;
- expenses;
- financing.
Also review the relevant rental information available as part of the transaction.
Understand the leases.
Understand the income.
Understand the obligations that come with the property.
Because you are not simply buying walls and land.
You are also buying an existing rental situation.
And that situation can directly affect how you manage the property after the purchase.
How Do Tenants Affect a Real Estate Investment?
Two properties can show exactly the same gross rental income on a listing.
That does not automatically make them the same investment.
Why?
Because the quality and stability of the income also matter.
Management matters.
Expenses matter.
Existing obligations matter.
The amount of time the property requires from its owner matters too.
An investor should therefore go beyond:
“How much income does this property generate?”
And ask:
“What is the quality of this income, and what will I need to manage to maintain it?”
That is a much more useful question.
What Tenant-Screening Mistakes Should Landlords Avoid?
Relying Only on Personal Impressions
A good conversation during a showing is not a verification.
Collecting Too Much Personal Information
Collect the information you actually need.
Not everything a form technically allows you to request.
Running a Credit Check Without Consent
Obtain the required consent before a third-party credit check.
Using Different Criteria for Different Applicants
Establish your process before you begin and apply it consistently.
Assuming a Guarantor Eliminates Every Risk
A guarantee does not automatically turn an application into a good decision.
Guarantees and suretyships also involve their own rules and obligations.
Using an Old Rental Application Found Online
Privacy and rental rules evolve.
A form found online is not automatically compliant with current Quebec requirements.
How Should You Structure Your Tenant-Screening Process?
A simple method can reduce improvised decisions.
- Prepare a clear and complete rental listing.
- Establish objective criteria before showings begin.
- Use a consistent pre-screening method.
- Collect only the personal information you actually need.
- Obtain the required consent before a credit check.
- Evaluate payment habits and the application as a whole.
- Verify relevant references.
- Confirm identity without unnecessarily retaining sensitive information.
- Reasonably document your process.
- Use the appropriate lease and understand your obligations before signing.
The goal is not to make renting complicated.
It is to make the decision less improvised.
Is the Best Tenant the Applicant With the Most Perfect File?
Not necessarily.
You are not looking for a perfect person.
You are looking for an applicant who can demonstrate, using information you can legitimately consider, that they can meet their rental obligations.
A thick application file is not automatically better.
A high credit score is not a guarantee.
A great first impression is not proof.
And the absence of a long Quebec credit history is not automatically a problem.
You are not trying to predict the future. You are trying to reduce uncertainty.
That is an important difference.
The Bottom Line
Choosing a tenant in Quebec is not about finding someone who inspires confidence during a fifteen-minute showing.
It is about building a serious process.
Review payment habits.
Obtain the necessary consent before a credit check.
Verify relevant references.
Limit the collection of personal information.
Use consistent criteria.
Respect Quebec rules.
Most importantly, do not try to eliminate risk completely.
No landlord can.
Instead, make a better-informed decision using the right information.
Because a real estate investment does not depend only on the property you buy.
It also depends on the quality of its income and how you manage what happens after the purchase.
Impressions can reassure you.
A process helps you decide.
The right decision. At the right time. For the right reasons.
Jonathan Cabana
Residential and Commercial Real Estate Broker
eXp Québec
Greater Montreal | South Shore
(514) 476-0730