Ontario Landlords Know Running Safe and Legal Tenant Credit Checks Are the Key To Renting to Good Tenants!
Successful Ontario landlords know the importance of running credit checks on tenants.
After all, we’ve recently read a Toronto Star story about a Toronto tenant who was charged for defrauding landlords.
The crimes he committed included writing fifteen checks to 2 landlords when he knew they would be NSF (because the bank accounts associated with the checks had been frozen),changing his Equifax tenant report to look more attractive, and forging checks using his former companies logo and equipment.
He pleaded guilty to ten of the sixty-six charges and received a twelve month conditional sentence and a year of probation.
Even BC landlords are running credit checks and they can get a damage and pet deposit from tenants.
Alberta landlords have a lot of rights and can also collect damage deposits and are still doing thorough tenant screening (including tenant credit checks) these days.
It’s Important To Run Credit Checks On Tenants The Right Way
Many Ontario landlords are running tenant credit checks the wrong way.
And this wrong way can lead to lots of unnecessary problems for you and the person who is running the tenant credit checks on your behalf.
What is the Wrong Way To Run Tenant Credit Checks?
Some landlords are running credit checks on tenants via ‘friends’. This is the wrong way.
1. Mortgage agent
2. Mortgage broker
3. Realtor (real estate agent)
4. Works at Car Dealership
5. Bank or Credit Union Employee
We contacted Equifax Canada for help for Ontario landlords who want to run safe and legal credit checks.
Equifax Advice For Running Safe and Legal Tenant Credit Checks
We received advice from Paul Lefevre from Equifax Canada.
Here’s what Paul from Equifax says about how landlords can run credit checks on tenants in a safe and legal way:
“The Equifax Service Agreements that these “friends” (who are pulling on behalf of landlords) explicitly requires that the consumer credit files from Equifax Canada Co. are for their exclusive use ONLY.
They are clearly restricted from sharing with other entities. Federal disclosure legislation (PIPEDA) also defines the requirements for true and accurate disclosure to a consumer as to whom their personal information has been provided.
This practice is a breach of the Agreement and clearly puts their membership w Equifax at risk. There are no jurisdictions in Canada where this practice is allowed, no exceptions.”
So this means landlords across Canada need to use a certified tenant credit check company to run legal credit checks on tenants.
How Can I Run Safe Credit Checks on Tenants?
You can join the Ontario Landlords Association and get access to premium credit checks for only $10 per check.
It’s a huge savings and also by using a certified company you protect yourself from tenant complaints.
You can join the Ontario Landlords for only a low one-time registration fee and get access to legal credit checks.
You also get networking and the Ontario Rental Kit filled with premium documents such as leases and applications for Ontario Landlords to succeed!