In a competitive rental market, multiple applicants often vie for the same unit. Landlords - whether individual investors or property management companies - are making a decision that will affect their property and their income for at least a year. Understanding what they are evaluating helps you present the strongest possible application.
Income and ability to pay
The first thing a landlord assesses is whether you can reliably afford the rent. The general guideline used by most landlords and property managers in Ontario is that gross monthly income should be approximately 2.5 to 3 times the monthly rent. For a $2,400/month unit, that means demonstrating gross monthly income of $6,000–$7,200.
For salaried employees, this is straightforward to document. For self-employed applicants or those with variable income, more documentation is needed: typically two years of Notices of Assessment from the CRA, along with a letter from your accountant if applicable.
Employment stability
Income amount matters, but so does stability. A landlord wants confidence that the income will continue for the foreseeable future. A permanent, full-time position with an established employer is the easiest situation to underwrite. Contract or temporary employment is not disqualifying, but you will need to demonstrate the contract's remaining duration and, if possible, a history of contract renewals.
A well-written employment letter goes a long way. It should be on company letterhead, signed by HR or a manager, and include your title, employment type (full-time/permanent), start date, and salary or hourly rate.
Credit history
Landlords use your credit report to assess how reliably you meet financial obligations. Most landlords and property managers expect a score of approximately 650 or higher. More important than the number is the history: consistent on-time payments, no outstanding collections related to housing, and no recent bankruptcies or consumer proposals.
If your credit score is lower than ideal, address it proactively. Explain the circumstances in a cover letter - a one-time medical event, a job loss that has been resolved, or an error being disputed - and offer additional reassurance such as a larger deposit (subject to Ontario law) or strong references. Transparency builds more trust than a landlord discovering the issue and wondering what else hasn't been disclosed.
Rental history and references
A positive reference from a previous landlord carries significant weight. It demonstrates you are a reliable tenant who paid on time, respected the property, and left on good terms. If you are renting for the first time or have a complicated rental history, strong professional references from employers or other credible sources can partially substitute.
Contact your references in advance, let them know they may receive a call, and confirm they are comfortable providing a positive reference. A reference who is caught off guard or who gives a lukewarm recommendation can cost you the unit.
Completeness and presentation of the application
A complete application - one where every requested document is included, clearly organized, and submitted promptly - signals the kind of tenant you will be. Landlords deal with applications from dozens of people; a disorganized or incomplete application creates extra work and doubt.
Prepare all documents before you start your search so you can submit a full, complete package the same day you view a unit you want.
What landlords cannot legally consider
Under Ontario's Human Rights Code, landlords cannot discriminate based on race, ancestry, place of origin, colour, ethnic origin, citizenship, creed, sex, sexual orientation, gender identity, age, marital status, family status, disability, or receipt of public assistance. If you believe you have been discriminated against, the Human Rights Tribunal of Ontario handles these complaints.
Our leasing team helps tenants navigate the application process and present themselves effectively. Reach out to us - we help tenants across the GTA find and secure the right rental.
