How to Screen Tenants in Alberta

Tenant screening is the most important step in protecting your rental investment. A bad tenant can cost you thousands of dollars in unpaid rent, property damage, legal fees, and vacancy costs during the eviction and re-renting process.

But screening must be done correctly. Alberta's Human Rights Act imposes strict rules on what you can and cannot ask. Violating these rules -- even unintentionally -- can result in a formal complaint, an investigation, and financial penalties.

The goal of screening is simple: verify that the applicant can afford the rent, has a history of being a responsible tenant, and is who they say they are. Everything you ask should serve one of these purposes. If a question does not relate to the applicant's ability to fulfill the lease obligations, you probably should not be asking it.

Under Alberta law, landlords can request the following information from rental applicants:

• Full legal name and contact information: Phone number, email address, and current address.
• Number of intended occupants: You are entitled to know how many people will be living in the unit. This is a legitimate question related to building capacity and wear.
• Employment information: Employer name, position, length of employment, and contact information for verification.
• Proof of income: Recent pay stubs, an employment letter, or a Notice of Assessment for self-employed individuals. This verifies the applicant's ability to pay rent.
• Credit report: You can request a credit check, but you must have the applicant's written consent. The credit check must be for a direct business requirement (assessing tenancy risk).
• Rental references: Names and contact information for 1-2 previous landlords. Ask about payment history, property condition, and whether they would rent to this person again.
• Rent-to-income ratio: Most landlords look for rent to be no more than 30-40% of gross monthly income, though this is a guideline, not a legal requirement.

You can also ask for government-issued photo ID to verify the applicant's identity.

The Alberta Human Rights Act prohibits discrimination in tenancy based on protected grounds. You cannot ask questions or make decisions based on:

• Race, colour, or ancestry
• Place of origin: Do not ask "Where are you from?" or "Where were you born?"
• Religious beliefs
• Gender, gender identity, or gender expression
• Sexual orientation
• Marital status: Do not ask "Are you married?" or "Are you single?"
• Family status: Do not ask "Do you have children?" or "Are you planning to have children?"
• Source of income: You can verify the amount of income, but you cannot discriminate based on where it comes from (employment income, AISH, CPP, child support, etc.)
• Physical or mental disability
• Age: Do not ask for date of birth on the application (unless needed for a credit check, in which case it must be used only for that purpose)

Even casual or conversational questions can be problematic. "What church do you attend?" or "What a beautiful accent -- where is that from?" may seem harmless but could support a discrimination complaint if the applicant is denied.

The safest approach is to use a standardized rental application form that only collects legally permissible information, and to apply the same criteria to every applicant.

A credit check is one of the most useful screening tools, but it comes with legal requirements:

• Written consent required: You must obtain the applicant's written (or electronic) consent before pulling their credit report. This consent must be specific -- it should state that you are requesting the report for the purpose of evaluating a rental application.
• Direct business requirement: The credit check must be for a legitimate purpose directly related to the tenancy decision.
• Non-discriminatory application: You must require credit checks from all applicants, not selectively. Targeting specific groups for credit checks (e.g., only applicants of a certain ethnicity or age) is a human rights violation.
• Confidentiality: The credit report contains sensitive personal information. You must store it securely and use it only for the stated purpose.

When reviewing a credit report, look at:

• Payment history: Late payments, collections, and defaults are the most relevant factors.
• Overall score: A score above 650 is generally considered acceptable. Below 600 warrants additional scrutiny or additional security measures (guarantor, etc.).
• Debt-to-income ratio: High existing debt relative to income may indicate difficulty paying rent.

A credit check alone should not be the sole basis for your decision. Some excellent tenants have lower scores due to limited credit history (newcomers, young adults). Consider the full picture.

Rental references are arguably more valuable than credit scores. A previous landlord can tell you things a credit report cannot -- whether the tenant was respectful, kept the unit clean, followed building rules, and gave proper notice when leaving.

When contacting references, ask specific questions:

• Did the tenant pay rent on time?
• Was the unit kept in good condition?
• Were there any noise or behavior complaints?
• Did the tenant follow the terms of the lease?
• Was proper notice given before moving out?
• Would you rent to this person again?

Be cautious with references. Verify that the person you are speaking with is actually the landlord or property manager -- not a friend posing as one. Cross-reference the phone number with the property address. Google the property to confirm ownership or management details.

If an applicant cannot provide rental references (first-time renter), ask for alternative references: employer, academic advisor, or other professional contacts who can speak to their character and reliability.

Verifying income ensures the applicant can afford the rent. The standard benchmark is that rent should not exceed 30-40% of gross monthly income, though this is a guideline you set, not a legal requirement.

Acceptable forms of income verification include:

• Recent pay stubs: Two to three recent pay stubs showing consistent income.
• Employment letter: A letter from the employer confirming position, salary, and employment status (permanent, contract, etc.).
• Notice of Assessment: For self-employed applicants, the CRA Notice of Assessment shows annual income.
• Bank statements: Can supplement other documents to show consistent deposits.
• Government benefit statements: AISH, CPP, or other income support. Remember: you cannot discriminate based on the source of income -- only the amount.

If an applicant's income is borderline, you can ask if they have a guarantor or co-signer. A guarantor is a third party who agrees to be financially responsible if the tenant defaults on rent. This is a common and legally acceptable arrangement.

While every applicant deserves fair consideration, certain patterns warrant additional investigation:

• Gaps in rental history: Unexplained gaps may indicate evictions or periods of couch-surfing. Ask about it -- there may be a reasonable explanation (travel, living with family, etc.).
• Reluctance to provide references: A tenant with nothing to hide will gladly provide landlord references. Refusal is a significant red flag.
• Inconsistent information: If the employment information on the application does not match what you hear from the employer, investigate further.
• Pressure to move in immediately: While urgency is normal, extreme pressure to skip normal screening steps may indicate the applicant has been denied elsewhere.
• History of frequent moves: Moving every 6-12 months without clear reasons (job relocation, personal circumstances) may indicate a pattern of lease-breaking or conflicts with landlords.
• Multiple collections or judgments on credit report: This indicates a pattern of financial irresponsibility beyond a single hardship event.

Always apply the same standards to every applicant. Document your reasons for accepting or rejecting each application. If a rejected applicant files a human rights complaint, you will need to show that your decision was based on legitimate, non-discriminatory criteria.

Manual screening -- collecting paper applications, calling references one by one, ordering individual credit reports -- is time-consuming and error-prone. Modern tools can help:

• SQRFT Tenant Passport: Tenants build a verified profile that includes a credit report, identity verification, and reference checks. As a landlord, you receive a standardized, pre-verified package that saves you hours of screening work. Learn more about Passport.
• Online application forms: Use digital forms that collect only legally permissible information. This reduces the risk of asking prohibited questions and creates a consistent process.
• Automated reference requests: Send reference check requests via email with standardized questions. This is faster than phone calls and creates a written record.

Whatever tools you use, ensure they comply with Alberta's privacy legislation (the Personal Information Protection Act, or PIPA) and the Human Rights Act. Data you collect during screening must be stored securely, used only for the stated purpose, and destroyed when no longer needed.