The definition of “qualification” is highly subjective, is it not?
How does one qualify for something?
In theory, a pre-determined set of criteria would exist, and if the individual meets this criteria, then he or she “qualifies.”
But who makes up those criteria?
And who could deem that criteria to be “unfair,” and why?
Over the last several years, I have written far more articles about the rental market than ever before.
We still do our quarterly look at the Toronto rental market, the last installment of which can be viewed here: January 27th, 2025: “How Is The Downtown Rental Market?”
But aside from the rental market statistics, I’ve found we have continued to come back to the topic of the rental market in general, over and over, most notably as it pertains to the following:
- The process of securing a tenant.
- Issues between landlords and tenants.
- Issues within the “system,” ie. the enforcement of the Landlord & Tenant Act
- Qualification of tenants.
Last fall, I wrote the following:
September 16th, 2024: “The Problem In The Rental Market That Nobody Will Talk About”
This was a long-overdue discussion about the stark dichotomy between the Ontario Human Rights Commission’s “Prohibited Grounds Of Discrimination” and the realities of today’s rental market.
The blog post produced 36 comments so the readers seemed to enjoy it, but since then, more and more issues in the rental market have come up.
One of the largest issues I see out there at the moment is the idea of “qualification.”
It’s a moving target. Or rather, it’s a target that runs larger or smaller, depending on the individual and a target that some claim to hit before they’ve even bothered trying.
Today, I want to ask about certain elements of the traditional “qualification process” and see if they’re still reasonable in 2025.
While part of this blog and the subsequent criteria might seem like satire, I assure you, it’s not.
I still work on at least 10-15 rental listings per year, and each and every time, dealing with the agents and the prospective tenants who think they “qualify” is an absolute nightmare. Maybe some know they don’t qualify and don’t care, but others seem to have absolutely no clue in the world.
Or maybe I’m the problem. Maybe my “qualification criteria” is just too stringent.
Remember the episode of Seinfeld where George is mulling over potential career paths for himself?
At one point he says to Jerry, “What about a play-by-play announcer for baseball? You know how when we watch games, I usually make really good comments?”
And what does Jerry tell him?
“Well, George, you know those jobs typically go to former baseball players and, well, you know……..people who are IN broadcasting.”
Do you see a parallel here? Am I asking for too much when I define “qualifications” for tenants?
You decide.
Here are the most basic wants, needs, asks, and “qualifications” that a landlord could have of the prospective tenants in 2025…
1) Having a job.
Does the lack of a job preclude an individual from meeting the “qualifications” necessary to rent a condo?
This is a serious question.
As insane as it might seem to you or me to think that, somewhere, somebody will argue that an individual need not be gainfully employed in order to rent a condo, it seems that many people think it’s totally normal.
Here’s an email I received two months ago, with the names changed:
Hi David,
I have clients interested in your condo listing at (address). I wanted to run their profile by you before I book a showing to see if your landlord would be ok with this.
Bob and Susy have just arrived here in Canada from (country). They are both looking for work but are highly employable in their fields. Bob is a software engineer and Susy is a website designer and they are currently interviewing for jobs and are both very confident in their ability to secure work. They each have earning power of up to $100,000 per year.
As they are both new to the country they do not have any credit profiles we can share but we can show you their bank accounts back home in (country) and a history of their prompt payments to landlords back home.
Let me know if we should move forward with our appointment viewing.
(Agent Name)
Is this acceptable to you, as a landlord?
The potential tenants are “highly employable” but lack employment.
I don’t know and I don’t care what provincial or federal legislation or rights commissions say about this; I simply have no problem going on record with the fact that (gulp!) I think it’s reasonable to consider employment as a qualification criterion for a prospective tenant.
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2) Having a credit history.
Is it discriminatory to say “no” to a potential renter because he or she has no credit history?
I don’t know. I’m actually asking this.
I’m sure that according to some “rights” watchdog, somewhere, this would be discriminatory, and while I recognize that newcomers to Canada can’t be expected to have a credit history with Equifax or TransUnion, should it really fall on the shoulders of the individual landlord to take on the risk.
Should it?
While I understand that there’s a portion of society who deems all investors and landlords “evil” for having the audacity to invest in real estate, own property, or take a financial risk with their after-tax dollars, but here on planet earth, I think it’s reasonable for a property owner to set a realistic set of evaluation criteria in place for a prospective tenant.
Having a credit history is exactly that: realistic.
Now, if a prospective tenant is gainfully employed and in possession of a job letter, has been at the job for three months or more (ie. the typical probation period), but has only been in Canada for 3 1/2 months and doesn’t have a credit profile yet, then I still think it’s up to the discretion of the landlord.
I would also add that while anything can be faked these days, having a credit profile for a prospective tenant is one more layer of protection for the landlord.
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3) A reasonable number of people for the space.
This is another example of, “I can’t believe we’re having this conversation,” but you can’t imagine what we see out there these days.
You also can’t imagine how many email inquiries I receive and subsequently delete. Go ahead, tell me that’s disingenuous. Tell me I’m not “working on behalf of my client.” But trust me when I say, as it pertains to the latter, I’m doing everything I can to protect them…
Case in point:
Dear Mr. Bosley,
We are formally expressing interest in the property located at (address).
There are three of us, all single males, all employed in the technology sector, relocating to Toronto for June 1st, 2025.
We would be interested in setting up a virtual viewing of the property. Please advise on next steps.
(No Name Provided)
First of all, I’m flattered that this individual thinks I own Bosley Real Estate, but alas, I am not “Mr. Bosley.”
But more importantly, this email was received through Realtor.ca, via the affiliate Rentals.ca, for a property we had listed with the following criteria:
-Junior One-Bedroom
-One Bathroom
-401 Square Feet
Again, I will ask you to define “reasonable.”
In doing so, we might, just maybe, hone in on the idea of “qualifications.”
Notably, do THREE individuals “qualify” to rent a 401 square foot condo with a single, open concept bedroom?
While I understand that three individuals could “live” in here, and by “live,” simply mean “sustain life,” I don’t think it’s unreasonable for a landlord to deem these tenants “unqualified.”
Just as an individual without a job might be unqualified in the eyes of a landlord, I would argue that three people living in a bachelor condo would also not meet “qualifications.”
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4) Identification.
A scammer could fake a LinkedIn profile, right?
Of course.
But when you’ve got an individual with a 14-year history on LinkedIn, having worked for three different global corporations, and having endorsements from a dozen other individuals with lengthy LinkedIn histories, it’s a lot less likely that this person is fake.
And a scammer could fake a driver’s license or a passport, right?
Sure.
But any of us can check an active Ontario Driver’s License here: https://www.dlc.rus.mto.gov.on.ca/dlc/enter-details
How about a work permit? What about a permanent resident card?
Would it surprise you to know that many prospective tenants don’t provide any identification up front? What’s more is that many prospective tenants refuse to provide identification when asked, many of their agents citing the illegality of even asking.
Call me naive, but any bona fide tenant looking to rent a Toronto condo should be scanning two pieces of personal identification and submitting it with the offer. Failing this, it’s up to the landlord to decide if the identification is necessary for the tenant to “qualify.”
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5) A reasonable GDS ratio.
Go on, say “gotcha.”
Put me on the front cover of the Toronto Star.
As you may know from reading my blog in 2024, the Ontario Human Rights Commission has prohibited discrimination on the grounds of any sort of “minimum income criteria,” especially as it pertains to ratios.
Even though everybody uses some sort of ratio as the most basic form of the qualification process, this is, in fact, prohibited. Have a read, HERE.
But the amazing part is, if you look on a federal government website, you’ll read the following:
Rent Within Your Budget.
Spending too much on rent may make it difficult to cover your other expenses or save for the future.
In general, your rent and household-related expenses should not be higher than 35% of your gross household income. Your gross household income is all income you receive before taxes and deductions. For example, if your gross pay is $4,000 a month, limit your housing costs to $1,400 a month.
Making a budget will allow you to identify your income and expenses and know what you can afford.
This is an excerpt from a hilarious section on the Government of Canada’s website called: “Renting An Apartment Or House.”
I know, I know, this is actually good advice.
But it’s part of a page that contains a lot more information, like the following:
Outfitting Your Place.
If you’re moving out for the first time, you may need to buy:
- furniture
- dishes
- kitchen utensils
- small appliances
- bedding
- towels
- cleaning supplies
No, come on!
Really?
This is what our federal government is spending time on? Setting up web pages that help to prepare Canadians for the brutal realities of living alone, such as having to buy their own dishes and cleaning supplies?
Man, if only we taught this in school these days instead of constantly telling kids to find ways to be offended, aggrieved, or marginalized. Because once upon a time, we didn’t need the federal government to tell people to purchase furniture when they rent a property. I wonder how federal jobs were created to oversee this website?
In any event, the fact that a provincial website decries the use of “discriminatory” income ratios while a federal government website tells us, “your rent and household-related expenses should not be higher than 35% of your gross household income,” is an irony not lost on me.
So I ask once again: is it reasonable to use a GDS or TDS ratio as a “qualification criteria” in 2025?
It looks like two of our branches of government disagree on this, but for the rest of us, I would argue that it’s completely reasonable.
There are just many, many tenants out there that never got this memo.
Ask me how many times an individual with a $45,000 per year salary applies to rent a $2,400 per month condo. Ask me how many prospective tenants submit an offer on a condo when their GDS ratio is 64%.
Is it reasonable in 2025 to use this as a qualification criterion?
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6) Not having wages garnished or debt consolidation.
I’m not making this up, folks.
And you can argue that this is simply a “sign of the times,” or that “Toronto is expensive,” but I would also argue, as I have in the past, that an individual who is massively in debt and going through debt consolidation should be living within his or her means.
Here’s a great email:
Hi Dave:
I have a client who is interested in your loft listing which looks amazing!
I wanted to run her profile by you first though since some other agents have said their landlord wouldn’t be interested.
She is a single female and very responsible personally and financially, but she had an ex-partner who got her into some money troubles and now she has a lot of debts but they aren’t really hers. He left her in the lurch and she owes money on a lot of different credit cards and lines of credit but she is working with Farber Debt Solutions which is a licensed insolvency trustee and if you read their reviews you’ll see that they genuinely set out to help people in debt turn their lives around so we hope that you won’t hold this against her.
Let me know if we should book a viewing for this weekend.
(Agent Name)
I mean, you tell me: would you follow up on this?
Would you email the agent and ask for more details?
“Hey Brad, how much debt is she in? What are her monthly payments? Are her wages being garnished?”
No. Of course not.
Unless you’re simply here on this earth to help people, that is. But then again, if you’re in the position of “listing agent,” you’re supposed to be helping your landlord client; not a person who is in massive financial trouble.
Sorry, I guess I had my heart removed from my chest not too long ago…
Call me old-fashioned, but I believe in personal responsibility and I believe in living within one’s means.
I still buy boneless skinless chicken in bulk at Costco and put them four-to-a-bag in my freezer because I know I’m saving about 60-70% off retail, and I know I go through a lot of chicken!
Why do people with massive personal debt think it’s their God-given right to rent brick-and-beam lofts in downtown Toronto?
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7) Actually viewing the property before expressing interest.
Believe it or not, the real estate community remains split on this one, and it’s far from the “chicken-and-the-egg” debate.
There is a right way to do things, and because so many people out there don’t want to do things the right way, an argument is being formed that the wrong way is right.
As I have written on TRB many times before, there are a slew of leasing agents out there today who won’t show a condo to a tenant-client unless the listing agent for that unit “pre-approves” the tenant in advance.
What does this mean?
Well, essentially the leasing agent, instead of showing the condo and then submitting an offer to lease along with supporting documentation, will first email the listing agent with the supporting documentation and say, “Please read through all this and let me know if you and your landlord would consider my tenant-client.”
It’s ridiculous.
Ridiculous, not only because today’s leasing agents have become lazy and entitled, but also because to ask any listing agent to “pre-approve” a tenant would open a discrimination case if the answer was “no” for any reason.
Call me old-fashioned and call me naive, but I think that the process is as follows:
1) Find a property in which your tenant-client is interested.
2) Show the property to the tenant-client in person.
3) Submit an offer to lease the property, complete with credit check, rental application, employment letter, identification, etc
In recent years, leasing agents have turned this around.
Here’s an email I recently received:
Hello,
My client is an AAA tenant with a Good credit score and has an Annual income of $74,000 ($50,000 Annual Income, $24,000 Investment Income ) plus other income annually.
Applicant is looking to lease starting March 15, 2025.
Tenants: Total 1 Female
(Tenant Name) is currently working as Digital Activation Manager.
She also have about $37,000 Invested in Canadian Market
Please let me know if it can be considered, I can then book a showing and send an offer.
(Please find the attached IDs, Employment Letters, Payslips and Credit Reports)
The fact that this says “hello” tells me that it’s a copy-and-paste email that’s been sent to a slew of listing agents.
So let me get this straight: my job as the listing agent is to review the supporting documents for a prospective tenant who not only has yet to submit an offer to lease, but hasn’t even viewed the unit, and then tell the leasing agent to go ahead and book a viewing.
Nope.
Not gonna happen.
My job is to protect my client at all costs, and working like this is asking for trouble.
Just imagine this phone call to a reference:
“Hi, um, Dwight, my name is David Fleming and an acquaintance of yours has put you down as a reference. She’s looking to rent our condo, and while she hasn’t submitted an offer yet, or even viewed the property, well, um, I guess I wanted to know if you think she’s a good person?”
This is not how it works, but unfortunately, there are so many leasing agents who think it should work this way, that there are massive disagreements about this on real estate agent Facebook groups, and even some seasoned agents think this is how things should go.
I had obtained some screenshots of these discussions on Realtor Facebook groups to share, but a friend of mine from one of the groups said it would be in poor taste, even if I blacked out the names. Such is life.
But do we really need screenshots of these conversations?
“The sky isn’t blue. It’s not. I don’t care what you say.”
The discussions are like that.
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Phew!
Alright, I just took the time to read through the post after writing it, as I always do.
There’s definitely a “tone” inherent, and I think some of you might be thinking something like this:
Yes, maybe I am.
The Toronto rental market continues to deteriorate as landlords require more from tenants since fraud is at an all-time high, but simultaneously, tenants want to provide less.
Corners are being cut at every opportunity.
This isn’t going in the right direction!
I know some real estate agents who specialize in the rental market, specifically working with tenants, and these are some of the hardest-working people in the business. It’s a grind, it’s thankless, and it’s a tough way to make a living.
But kudos to the “good ones” out there, and if you’re a prospective tenant, trust me when I say that you will benefit from hiring a professional. The problem is: they’re so few and far between.
To the landlords out there: keep doing what you want, when you want, and how you want, and never compromise.
Happy Monday, folks!
