For landlords, tenant selection is the most important decision. A single bad tenant can cause unpaid rent, property damage, and endless stress. That’s why every landlord needs to know how to run a credit check on a tenant—and how to interpret the results correctly.
Yet too many landlords either skip this step or make mistakes when reviewing reports. This guide from AVS Hospitality, a top property management company in Ontario, explores the full process:
How to do a credit check on a tenant step-by-step
How to interpret results for different property types
When to compromise (and when not to)
Mistakes to avoid, based on real-world landlord experience
If you’ve ever asked yourself “How do I run a credit check on a tenant?”—this article is your complete playbook.
Why Tenant Credit Checks Are Essential
A tenant credit check provides landlords with insight into:
Payment history
Current debts and obligations
Risk of default
Financial stability
Skipping this step is like flying blind. As the CMHC explains, proper tenant screening is one of the best ways landlords can reduce financial risk.
At AVS Hospitality, we’ve seen landlords regret taking shortcuts. Filling a unit quickly is tempting, but it’s often far more costly than waiting for a qualified tenant.
Step-by-Step: How to Run a Credit Check on a Tenant
Step 1: Get Written Consent
Landlords in Ontario must have written permission to access a tenant’s credit report. We include this in our rental applications to stay compliant.
Step 2: Collect Tenant Information
Full name
Address history
Date of birth
Employment details
SIN (optional, but not required)
Step 3: Choose Your Platform
Equifax Renter Credit Check: Direct from the bureau.
SingleKey: Bundled report with rental history, income verification, and court record search.
Property Management Services: Companies like AVS Hospitality handle the entire process.
Step 4: Review the Report
Credit score
Debt-to-income ratio
Payment history
Collections or bankruptcies
Step 5: Make a Decision
Balance credit with income, references, and the type of property. For example, a student may have limited credit but strong guarantors.
How to Read Tenant Credit Reports
A credit report isn’t just a score—it tells a story. Here’s how to interpret the details:
Credit Score: 750+ = excellent, 700–749 = good, 660–699 = fair, <660 = high risk.
Payment History: Missed or late payments signal future rent issues.
Debt Levels: High credit utilization means the tenant may struggle.
Public Records: Collections, judgments, or bankruptcies are major red flags.
Account Age: Long-standing accounts show financial maturity; very new accounts may suggest instability.
👉 At AVS Hospitality, we don’t just read reports—we interpret them in the context of your property. A “risky” credit score for one landlord may be acceptable for another, depending on the building, unit type, and rental strategy.
Tools Landlords Can Use
Equifax Renter Credit Check
Provides credit scores, history, debt levels, and bankruptcies. Ideal for landlords who want direct access.
SingleKey
Popular with small landlords. Combines Equifax data with employment verification, rental history, and legal checks.
Professional Property Management
Multiplex developers often rely on firms like AVS Hospitality to standardize screening across units and reduce risk.
Should You Compromise on Credit to Fill Vacancies?
This depends on your situation.
Small Multiplex Owner: Vacancies directly hurt cash flow. But rushing in a tenant with poor credit can lead to eviction and months of lost rent.
Multiplex Developer: A bad tenant can disrupt an entire building. Developers typically enforce strict credit standards to protect long-term property value.
At AVS, we recommend balance: a tenant with fair credit but strong income, job stability, and positive references may be worth considering. But don’t ignore red flags just to fill a unit quickly.
Beyond Credit: Full Background Checks
A credit report is only one piece of the puzzle. Complete screening should also include:
Employment and income verification
Rental history and references
Public record searches
(Where legal) criminal background checks
👉 Services like SingleKey make this simple, or you can leave it to a property management company.
Renting and Credit Checks: Legal Considerations
Landlords must:
Get written consent
Avoid discrimination under the Human Rights Code
Store sensitive tenant data securely
Failing to follow the rules can expose landlords to liability.
👉 This is another area where professional property management reduces risk—by keeping landlords compliant.
7 Critical Mistakes Landlords Make with Tenant Credit Checks
Skipping credit checks entirely – relying only on gut feeling or rental references.
Not verifying employment – a good credit score doesn’t always mean stable income.
Overemphasizing the score – context matters (students and newcomers often lack long credit histories).
Ignoring debt levels – a tenant with maxed-out credit cards is high risk.
Not following up with previous landlords – references can confirm whether credit behavior matches rental history.
Failing to store data securely – mishandling sensitive reports can create legal risk.
Compromising too quickly – filling vacancies without screening often costs landlords more than waiting.
Case Study: Multiplex Developer vs. Small Landlord
Imagine two scenarios:
Developer Owning 40-Unit Multiplex: They enforce strict credit checks. Every applicant goes through Equifax and SingleKey, plus rental references. Why? Because one problem tenant can disrupt the building and impact NOI (net operating income).
Landlord Owning a Triplex: They’re more flexible. A tenant with a “fair” score but a stable job and positive landlord references might be accepted, especially if the unit would otherwise sit vacant for months.
Both are correct—for their context. Screening strategy depends on property size, location, and ownership goals.
Expanded Insights: Advanced Tips on How to Run a Credit Check
Here’s where many landlords miss opportunities:
Compare Across Applicants: Don’t just look at one report—compare trends across all applicants.
Look for Stability, Not Perfection: A credit score in the 680–700 range can still mean a reliable tenant, especially if employment is strong.
Use Guarantors Wisely: For students and newcomers, guarantors can mitigate the risks of limited credit history.
Watch for Patterns: One late payment is different from a consistent history of late payments.
Balance with Market Demand: In a hot rental market, you can afford to be stricter. In a slow one, you may need flexibility.
Why Property Management Makes the Difference
Landlords often ask us: “How do I run a credit check on a tenant without making mistakes?”
The truth is, the tools are available to everyone—but knowing how to use them effectively is where experience matters. At AVS Hospitality, we:
Collect tenant applications and consent
Run credit and background checks with trusted partners
Analyze results in context of the property type
Recommend balanced decisions (sometimes suggesting guarantors or co-signers)
Keep landlords compliant with Ontario’s legal framework
For small landlords, this means peace of mind. For developers, it means consistent, professional tenant screening across their portfolio.
👉 Ready to simplify your tenant selection process? Contact AVS Hospitality.
FAQs About How to Run a Credit Check
Q1: How do I get a credit check on a tenant?
You can use Equifax, SingleKey, or a property management company. The key to how to run a credit check properly is obtaining consent and interpreting results with context.
Q2: Can I rent to someone with bad credit?
Yes, but you should mitigate risk with guarantors, higher deposits (where legal), or shorter lease terms. This is why knowing how to run a credit check is critical—you can decide when compromise is acceptable.
Q3: How long does a tenant credit check take?
Reports can be pulled instantly online. The bigger question is how to run a credit check and interpret it accurately, which is where property managers add value.
Conclusion: Mastering How to Run a Credit Check Protects Your Investment
Knowing how to run a credit check is an essential skill for landlords. It’s not about perfection—it’s about risk management.
By using Equifax, SingleKey, and professional property management services, landlords can avoid the most common mistakes and choose tenants with confidence.
At AVS Hospitality, we’ve guided landlords through thousands of applications. Our approach isn’t just about reports—it’s about interpreting them in context, reducing risk, and keeping your rental income flowing.
📞 Contact AVS Hospitality today to learn how to run a credit check the right way and protect your rentals.
Get in Touch
📞 Call: 647-294-5111
📧 Email: contact@avshospitality.ca
📲 Instagram: @avs_hospitality
▶️ YouTube: AVS Hospitality Channel
👉 Website: AVS Hospitality
