Module 6: Formal Tenant Screening in British Columbia | Landlordpass.com

Module 6 — Tenant Screening

Formal Tenant Screening

Verify Income • Validate History • Use Objective Criteria

Income verification, credit analysis, rental history checks, PIPA compliance, and documented decisions in BC.

Screening is Risk Control

Bad selection can trigger arrears, RTB disputes, and extended vacancy. The best defense is consistency + documentation.

Affordability First

Use an income-to-rent guideline (commonly 30–35%) and a DTI check. Over-stretched tenants are the highest arrears risk.

Rental History is the Best Predictor

Credit helps, but confirmed landlord references and stability signals are often more predictive than the score alone.

Module Summary

This module gives you a repeatable screening workflow: verify income, assess credit responsibly, validate rental history, and select tenants using objective criteria that can be defended if challenged.

Key Outputs:

Income-to-rent and DTI screening method
Reference verification script (last 2 landlords)
Credit report review checklist
Decision notes template (approval/rejection)
PIPA-aligned collection + retention approach

1. The Problem: A Weak Screening Step Creates Expensive Tenancies

Module 5 focused on showings and pre-screening. Module 6 begins after you receive applications. At this stage, your risk is not “lack of interest.” Your risk is choosing the wrong tenant because screening was rushed, inconsistent, or undocumented.

Arrears risk: income is insufficient, DTI is too high, or payment discipline is weak
Fraud risk: fake references, altered pay stubs, or identity mismatches
Legal risk: inconsistent screening creates Human Rights exposure
Privacy risk: collecting too much data (or storing it poorly) triggers PIPA issues

Screening is not about being “strict.” It is about using consistent, defensible criteria to reduce predictable failures (non-payment, disputes, damage).

2. Mechanism: A 4-Layer Screening Model

Use a layered model. Each layer either confirms reliability or reveals risk. The goal is not perfection. The goal is a defensible choice.

2.1 Layer 1 — Affordability (Income-to-Rent)

A common affordability guideline is rent at 30–35% of gross household income. Use it consistently and document it.

Quick calculation

Income-to-rent % = (Monthly rent ÷ Gross monthly income) × 100

Target: 30–35% (context matters; apply consistently)

2.2 Layer 2 — DTI (Debt-to-Income)

DTI estimates how “stretched” the household is after debt obligations.

DTI formula

DTI = (Monthly rent + monthly debt payments) ÷ Gross monthly income

Guideline: <35% strong • 35–45% moderate • >45% higher risk

2.3 Layer 3 — Credit (Equifax/TransUnion)

Credit helps validate repayment behavior. Don’t reduce screening to one number: review recent delinquencies, collections, and the story behind the file.

Score Range	General Meaning	Practical Approach
750+	Strong repayment history	Proceed if other layers align
700–749	Very good	Proceed if income/DTI are reasonable
650–699	Fair-to-good	Proceed with stronger references and stability checks
600–649	Higher risk indicators	Require stronger income + clean rental history; consider co-signer if appropriate
<600	High risk	Typically decline unless mitigating factors are strong and documented

2.4 Layer 4 — Rental History (Last 2 Landlords)

Rental history is often the best predictor of tenancy behavior. Verify references (don’t just call the number provided).

Verify landlord identity before relying on the reference. Fake “landlord references” are common in competitive markets.

Landlord reference questions (standard)

1) Did the tenant pay rent on time? Any arrears?

2) Any complaints (noise, neighbors, property rules)?

3) Property condition at move-out?

4) Did they follow notice requirements?

5) Would you rent to them again?

3. Failure Point: What Breaks Screening

3.1 “Nice” Overrides Data

Mistake: approving based on personality or urgency.

Fix: run the same checklist for everyone and decide based on documented criteria.

3.2 Unverified References

Mistake: calling “landlords” without confirming identity.

Fix: verify ownership/management source and cross-check contact details.

3.3 Over-Collecting Private Data

Mistake: collecting SIN, full bank logins, or unnecessary documents.

Fix: collect minimum needed, get consent, store securely, and destroy rejected files promptly.

3.4 Inconsistent Criteria

Mistake: strict with one applicant, relaxed with another.

Fix: publish internal criteria and apply uniformly (defensibility + fairness).

If you cannot explain your decision using objective criteria, you are exposed.

4. Defensive Protocol: Screening Checklist (Repeatable)

4.1 What to Collect (Minimum Necessary)

Signed application + consent for checks
Government photo ID (verify identity; avoid over-copying)
Proof of income (pay stubs / employment letter / NOA for self-employed)
Landlord references (last 2 landlords or property managers)
Credit report (only with written consent)

4.2 Step-by-Step Workflow (2–3 Business Days)

Day 1: completeness check + consent confirmation
Day 1–2: income verification + affordability % + DTI estimate
Day 1–2: credit report review (recent delinquencies, collections)
Day 2–3: reference calls (verify legitimacy first)
Day 3: decision notes + approval/rejection communication

4.3 Decision Notes Template (Keep It Neutral)

Approval: “Applicant approved. Income-to-rent = __%. DTI = __%. Credit score = __. Rental references verified (Landlord 1: __; Landlord 2: __). Criteria met.”

Not selected: “Applicant not selected. Objective reasons: (1) affordability/DTI outside guideline, and/or (2) unverifiable reference, and/or (3) recent collections/delinquencies. Another applicant selected due to stronger fit against the same criteria.”

Keep decision notes factual. Avoid commentary on personal characteristics. Your notes may be reviewed later.

4.4 Fraud Checks (High Impact, Low Effort)

Call employer main line (not the number on the letter) if verification is needed
Watch for mismatched names, fonts, rounding, and dates on documents
Confirm landlord/property manager identity before treating it as a true reference

5. Compliance Alignment (BC)

5.1 Human Rights Code Guardrails

Decisions must not be based on protected characteristics. Keep screening tied to tenancy performance: affordability, payment history, references, and suitability/occupancy.

5.2 PIPA (Privacy) Core Principles

Collect only what you need, obtain consent for use/disclosure, store securely, and keep for a reasonable period. Destroy rejected applications promptly.

5.3 RTA Practical Notes

Use RTB forms for the tenancy agreement and condition inspection processes once you approve a tenant. Keep communications professional and consistent.

6. FAQ (Top 20) — Tenant Screening

Q1: What’s the best single predictor of a good tenant?

Verified rental history with positive landlord references, combined with affordability (income-to-rent) that is within your guideline.

Q2: What income is “enough” for a $2,400 rent?

Using a 30–35% guideline: roughly $6,857–$8,000 gross monthly household income. Apply the same guideline to all applicants.

Q3: Is a 650 credit score acceptable?

Often yes, if income and references are strong. Focus on recent payment behavior and collections, not just the score.

Q4: How do I screen newcomers with limited Canadian credit?

Emphasize verified income, stability, and rental references (including verifiable international references if needed). Avoid decisions based on immigration status.

Q5: Can I ask for SIN?

Usually avoid it. It’s highly sensitive and often unnecessary for screening. Minimize collection under PIPA.

Q6: Can I charge an application fee?

Generally no in BC. Keep your process compliant and transparent; if you recover costs for a credit report, disclose it clearly and avoid “application fee” framing.

Q7: How many landlords should I contact?

Ideally the last two. At minimum, the most recent landlord/property manager, verified as legitimate.

Q8: What are the biggest red flags on credit?

Recent late payments, active collections, or patterns of delinquency in the last 12 months.

Q9: How do I verify a “landlord reference” isn’t fake?

Cross-check with ownership/management sources and confirm the phone/email through independent channels (not only what the applicant provides).

Q10: What is an acceptable DTI?

A common guideline is under 45% (lower is better). Above 45% suggests vulnerability to missed rent if an emergency occurs.

Q11: Can I require a co-signer?

You can request one when affordability or credit is borderline—apply that policy consistently and screen the co-signer too.

Q12: Should I accept screenshots of pay stubs?

Prefer PDF originals or verifiable documents. Watch for alterations and confirm employer details if needed.

Q13: What if the employer won’t confirm salary?

Confirm employment status and role. Combine with pay stubs/NOA and overall affordability calculation.

Q14: Should I keep rejected applications?

Keep only as long as reasonably needed for the purpose, then securely destroy. Avoid indefinite retention under PIPA.

Q15: How fast should I decide?

Aim for 2–3 business days after receiving complete documents. Communicate your timeline to applicants.

Q16: What if multiple applicants meet the criteria?

Choose based on your documented ranking criteria (e.g., strongest affordability + references). Record neutral decision notes.

Q17: Can I reject based on “gut feeling”?

Avoid it. Use objective criteria. If you cannot document an objective reason, you increase legal risk.

Q18: What information should I never ask?

Avoid questions tied to protected grounds (religion, ethnicity, family status details, etc.). Keep questions tied to tenancy performance and suitability.

Q19: Do I need consent for reference checks?

Yes. Get written consent for collection/use/disclosure of personal information and for contacting references.

Q20: What is the #1 screening rule?

Consistency. Same process, same criteria, documented decisions—every time.

References & Sources

Residential Tenancy Branch (BC) — Forms & guides https://www2.gov.bc.ca/gov/content/housing-tenancy/residential-tenancies
Residential Tenancy Act (BC) https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/02078_00
BC Human Rights Code https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/96210_00
BC PIPA (Personal Information Protection Act) https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/03063_00
Office of the Information and Privacy Commissioner (BC) https://oipc.bc.ca/
Equifax Canada https://www.equifax.ca/
TransUnion Canada https://www.transunion.ca/
LandlordBC https://www.landlordbc.ca/
TRAC https://tenants.bc.ca/

Update your templates periodically and keep consent language aligned with current privacy guidance.

This content is for educational and informational purposes and does not constitute legal, tax, or financial advice. Information is current as of January 2026 and aligns with BC's Residential Tenancy Act (RTA), Human Rights Code, and Personal Information Protection Act (PIPA).

Before implementing tenant screening criteria, consult a lawyer familiar with BC tenancy and human rights requirements, and ensure your privacy practices meet PIPA expectations.

This module is part of the Landlordpass.com research series (Module 6). Module 7 will cover onboarding: lease signing, deposits, move-in inspection, and tenant orientation for a dispute-resistant tenancy.

Research Founder Jimmy Ng • Landlordpass.com