by Zenova 
When a property owner is looking to rent out their property, the goal is to find a tenant who is reliable, respectful, and able to pay rent on time. Yet, many skip a crucial step: the credit check.
This simple verification can help prevent major problems and ensure a smooth landlord-tenant relationship.
What is a credit check?
A credit check involves reviewing a potential tenant’s financial history through credit agencies such as Equifax or TransUnion.
It allows you to verify:
- Their credit score (overall financial reliability)
- Their payment history (late or missed payments)
- Their current debts (loans, credit cards, etc.)
- Any judgments or past bankruptcies
Why is it so important?
A tenant with a good credit history is more likely to:
- Pay rent on time
- Respect their commitments for the duration of the lease
- Take care of the property
On the other hand, skipping this step can lead to:
- Frequent late payments
- Costly legal proceedings to recover rent or evict the tenant
- Loss of rental income
A tool, not a final judgment
A credit score should not be your only selection criteria. Sometimes a tenant may have an average score for understandable reasons (e.g., new to the country, recent divorce).
In these cases, you may:
- Request a guarantor
- Offer a shorter initial lease term
- Ask for proof of employment or income
How to conduct a credit check in Quebec
- Obtain the tenant’s written consent (required by law)
- Use services such as Equifax Canada or TransUnion
- Review the results according to your selection criteria
- Make an informed decision, combining the credit report with references and an in-person meeting
In summary
A credit check is an essential step for any landlord who wants to minimize risk and protect their rental investment.
It provides a clear picture of a potential tenant’s financial situation and helps avoid unpleasant surprises.
In property management, prevention always costs less than fixing problems later.
At Zenova, we always conduct a thorough credit check before signing a lease, ensuring landlords’ interests are protected and creating a healthy landlord-tenant relationship.